Property Contracts and Transfer of Title
This domain tests formation and enforcement of real estate contracts and the steps that make title transfer effective: deed execution, delivery, recording, title evidence, and closing.
Contract rules
A valid contract needs offer, acceptance, consideration, capacity, and lawful purpose. Real estate contracts must satisfy the statute of frauds: writing, signed by the party to be charged, with essential terms and a description. Contingencies-financing, inspection, appraisal, sale of the buyer's home-allocate risk. Earnest money is usually held in escrow; liquidated damages must be a reasonable estimate, not a penalty.
Deeds and recording
A deed needs a grantor, grantee, words of conveyance, legal description, and the grantor's signature; delivery with intent and acceptance completes transfer. Warranty deeds contain present and future covenants; special warranty limits covenants to the grantor's own acts; bargain-and-sale implies some covenants; quitclaim conveys only whatever interest the grantor has. Recording protects against later claims under race, notice, or race-notice statutes. Marketable title is title free from reasonable doubt and encumbrances, not necessarily 'perfect.'
Worked example
A contracts to sell to B, then sells to C. C records first and had no actual, constructive, or inquiry notice of B. In a race-notice state, C prevails because C recorded first without notice. In a pure notice state, B could prevail if B had no notice of C; in a race state, the first to record wins regardless of notice.
Traps
A quitclaim deed carries no warranty. Recording does not cure a forged deed. A contract can be enforceable before closing; escrow instructions are not the deed. 'Marketable' does not mean the buyer subjectively likes the title.