Contract and Deed Scenarios

Concepts that will show up when dealing with contracts and deeds.

What does a novation clause in a mortgage due for your client, during a loan consumption?

During a loan assumption, the seller is released from liability.

Your client wants to deed his property to his niece on her eighteenth birthday, he signs the deed and places it with his attorney to hold until her birthday party. Uknown to his attorney and his niece, your client passes away a few hours before the birthday party. The attorney delivers the deed in good faith, who owns the property?

Your client’s estate

What clause would be included in the sales contract to ensure the contract survives the closing, and the seller meets the terms?

The survival clause

You are the listing agent, and the county courthouse has burned down with all the records. Where can you find the legal description of your subject property?

Sellers deed

A quitclaim deed, has which of the following?

No protections, covenants or warranties

Due to the operation of law, which of the following will terminate a contract?

Mutual agreement

Your client is under contract to purchase a property, however prior to closing the house is strucked by lightning and burnt to the ground. If the contract is silent as to who bears full risk if the property is destroyed. Which of the following is true?

The buyer would bear the loss.