Project: Real Estate Law
PART 1
1. In the deed provided on page 8, identify the following clauses by line number (that is, cite the line number where the clause begins and where the clause ends).
A. The consideration clause
B. The granting clause
C. The legal description
D. The warranty clause
2. Review the warranty clause carefully. Identify the kind of warranty this language provides.
3. Draft a new warranty clause that, if put in place of the warranty clause presently in the deed, would turn the deed into a limited warranty deed
PART 2
Draft a property sale agreement based upon the facts provided.
A. The buyer is Bob Buyer, 10 Main Street, Centerville, West Dakota.
B. The seller is Sally Seller, 100 Oak Street, Farmerville, West Dakota.
C. The property is a two-family home at 100 Oak Street, Farmerville, West Dakota.
D. The property is at lot number 10, block number 10.
E. Purchase Price: $400,000
F. Initial deposit: $40,000
G. The closing will take place at 150 Commerce Avenue, Centerville, West Dakota, on June 15 of this year.
H. The transaction is contingent on the buyer being able to obtain a mortgage in the amount of $200,000, at an interest rate less than or equal to 6% by June 1 of this year.
J. The transaction is contingent on the buyer being able to sell the buyer's present home at 25 Elm Street, Potterville, East Dakota, by June 1 of this year.
K. All fixtures are included with the property.
L. The seller warrants that the property is zoned for a two-family home.
M. The seller is responsible for the condition of the property until closing.
N. The seller will provide a limited warranty deed.
O. The seller will pay all liens before closing.
P. The seller wants to include a standard clause stating that ownership is transferred subject to any easements in favor of utility companies.
Q. The buyer has already inspected the property and will accept the property "as is."
R. The seller will pay Benny Broker's broker fee of 3% of the purchase price.
S. The buyer and seller will apportion periodic expenses such as property taxes pro rata based on the time of transfer of possession.
T. If the contract is cancelled without breach by the buyer, the buyer's deposit will be returned. If the contract is cancelled because the seller is unable to provide a deed with the proper warranties, then the seller will also pay the buyer's costs.
U. The property is a two-family home. It is understood that Tommy Tenant will continue in possession of the rental apartment on the third floor of the property pursuant to his lease, which was executed on June 15 of last year and which expires on June 15 of next year. Tommy pays $700 per month in rent.
PART 3
The transaction between the buyer and the seller that was described in Part 2 has been completed. Unfortunately, Tommy Tenant didn't pay his rent on September 15, when it was due, and has not paid rent since. It's now December 15, and Bob Buyer wants to terminate Tommy's occupancy. Draft a notice of lease termination.
WRITING GUIDELINES
1. Type your submission, double-spaced, in a standard print font, size 12. Use a standard document format with 1-inch margins. (Do not use any fancy or cursive fonts.)
2. Save each part of your project as a separate document in Word or another word-processing program. Name the files Part 1, Part 2, and Part 3.