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Real Property • Conveyances
PROP#155
Legal Definition
Once a land sale contract is signed, the buyer is the equitable owner and thus the risk of loss passes to him (although the seller must credit any insurance proceeds to the buyer). The seller holds bare legal title in trust for the buyer, and his interest is considered personal property.
Plain English Explanation
There are many steps in purchasing real property. For example, after you sign a contract to purchase the property, you don't magically and immediately get the title to the property. That comes later.
So what happens when you own the property, but don't yet have title or possession of the property, and the property accidentally burns down? Under some jurisdictions, you're simply out of luck, as the buyer takes on all risk once they sign the contract.
So what happens when you own the property, but don't yet have title or possession of the property, and the property accidentally burns down? Under some jurisdictions, you're simply out of luck, as the buyer takes on all risk once they sign the contract.
Related Concepts
At closing, what is the implied covenant of marketable title?
How does a court treat a deed made to defraud creditors?
How does a court treat a voidable deed?
How does a court treat a void deed?
How does the Statute of Frauds apply to land sale contracts, and what is the effect of part performance?
How may a defect in the Chain of Title impact an Implied Covenant of Marketable Title?
How may an encumbrance impact an Implied Covenant of Marketable Title?
How may zoning impact an Implied Covenant of Marketable Title?
In assessing a conveyance of land, what are the types of notice?
In assessing a Doctrine of Equitable Conversion issue, how does death affect passage of title?
In assessing a Doctrine of Equitable Conversion issue, how does the Uniform Vendor and Purchaser Risk Act affect risk?
In assessing a seller's liabilities for defective real property, what constitutes failure to disclose?
In assessing a seller's liabilities for defective real property, when is a disclaimer sufficient to avoid liability?
In assessing a seller's liabilities for defective real property, when is a seller liable for defects they do not mention?
In assessing a seller's liabilities for defective real property, when is a seller liable for misrepresentation or fraud?
In assessing a seller's liabilities for defective real property, when is there a warranty of fitness or quality?
In assessing deed warranties, what is Against Encumbrances?
In assessing deed warranties, what is Right to Convey?
In assessing the formalities of a deed, what are the rules of construction and priority for the description of the land?
In assessing the formalities of a deed, when is acceptance valid?
In assessing the formalities of a deed, when is a description of land sufficient?
In assessing the formalities of a deed, when is delivery valid?
In assessing the warranties under a general warranty deed, what is Further Assurances?
In assessing the warranties under a general warranty deed, what is Quiet Enjoyment?
In assessing the warranties under a general warranty deed, what is Seisin?
In assessing the warranties under a general warranty deed, what is Warranty?
In land sale contracts, when is time of the essence?
In land sale contracts, when must each party tender performance?
Under a notice recording statute, when does a subsequent Bona Fide Purchaser prevail?
Under a race-notice recording statute, when does a subsequent Bona Fide Purchaser prevail?
Under a race recording statute, when does a subsequent Bona Fide Purchaser prevail?
What are the 3 types of deeds and warranties?
What are the requirements for a valid deed?
What is a general warranty deed?
What is a quitclaim deed?
What is a special warranty deed?
What is a wild deed?
What is estoppel by deed?
What is the Shelter Rule?
What remedies are available to a buyer upon violation of an Implied Covenant of Marketable Title?
What remedies are available to parties of a land sale contract if one of them breaches?
When may a deed be an inter vivos gift?
Who does title insurance protect?
Who qualifies as a purchaser for value?