Real Estate Transaction, Case Assignment

RealEstate Transaction, Case Assignment

Questionone

Accordingto the terms of sales, as enshrined in the M $ S Contract, the buyerhad the right of terminating and receiving a refund at any timewithin the 5 years of the contract in case the purchaser was not in aposition to live in the improvements on the property for reasonsassociated with medical grounds such as the need of moving to anursing home of an assisted living facility. According to the M &ampS Contract, the purchaser was to notify the seller of the need tomove to a nursing home or an assisted living facility. In such a caseof notifying the seller of this fact, the seller should go ahead andagree to terminate the contract and agree to refund the purchaser thepayment he/she had made (Korngoldand Goldstain 48).However, the purchaser had to pay a termination fee of $ 1000 to theseller. Therefore, in the scenario facing Mary and Sally, the termsof sale should apply. In the legal framework, any sales terms thathave been duly signed should be approached with respect, whichimplies that the terms should be followed to the maximum. From thescenario, Mary has varied options. The first option entails seekingfull refund of the payment she has made and terminate the contractthey had made. In this case, she would have to pay $ 1000 to theseller since it is under the terms of sales. Another option that Maryhas is to finda someone that can pay her rent for the house andcontinue paying monthly fees for the remaining months. Since only afew months are left to end the contract, this can act as an excellentoption. In this case, Mary has to set additional terms with Johnsince John is refusing to refund the payment she has made. In the newterms, Mary can include the terms of renting in order to fit herchoice. In addition, Mary can seek court interpretation for the M &ampS Contract that they had signed with John.

Asignificant information that I would want to know entailsunderstanding whether John and Mary had other terms of sales thatrestricts Mary from terminating the contract. Since the timeremaining to complete the contract is meager, there may be anotherrestricting term for the contract. In case it exists, then it shouldbe clearly stated and written under the sales terms. Besides, I wouldwant to know why John is refusing to honor Mary’s request. It isgood to hear the ground that John has and see whether it is legallyvaried.

QuestionTwo

Inthis case, John is tied by his failure of giving critical informationthat may end up to a misunderstanding. According to the salescontract, it is always critical for the seller to provide clear andall material information concerning the terms of sale. In case theseller does not provide all the material information, he is likely tobe held responsible by the purchaser for not disclosing materialinformation (Korngoldand Goldstain 105).In the case facing John, John did not disclose to Mary and Sallyabout the condition of the property this implies that in case ofanything happening later to the property due to his denial ofinformation, he would be held responsible for not disclosing crucialinformation. Although John does not want to refund the money back toMary because of the reasoning that the property’s value has gonedown compared to the resources that the purchaser is asking forrefund, the value of the property may have gone down because of itsprevious use. Thus, John does not have any defense in this case andshould not ask for more funds from Mary. However, this will only beeffective in case Mary does not know about the previous condition ofHappy Acres. The advice that I would give John is to consider whetherMary knew the condition of the property prior to purchasing it. Incase the purchaser had full information of the property prior topurchasing the property from an outsider, John will be on the safeedge since he will claim that the purchaser had full informationprior to purchasing the property. This implies that the purchaser maynot get full refund since the value of the property has gown down.Therefore, in such a scenario, John has a right to claim for somepart of the refund.

QuestionThree

Inthis case, Billy was acting on behalf of the seller. Therefore, it isassumed that he would represent the seller and offer any assistancethat the purchaser would like to have. This implies that Billy shouldbe held liable in case anything wrong happens emanating from theinformation that he gives to the purchaser. In the underlyingscenario, Billy did not provide the right information to Mary becausehe acted on the assumption. This implies that he should beresponsible to stand for any damages that Mary underwent by believingthat the property was worth that much (Korngoldand Goldstain 108).For instance, Mary believed that the property was not located in aplace that was once a dump this means that she could haveoverestimated the value of the property. In case Mary overestimatedthe value of the property, Billy should pay her back the amount thatshe feels that she paid in excess of the property. Besides, she cancancel the M &amp S Contract because material information had beenwithheld from her in this case, she would cancel the contractagainst Bill. An additional information that I would like to know iswhether John knew that Bill did not know about the previous conditionof where the property is. If he knew that Bill did not know andrefused to provide the right information, then Mary has an excellentground for terminating the contract.

QuestionFour

Inthis case, it is advisable for John to provide the correctinformation to Jack’s Last Chance Liquor Store concerning thecondition of the property he is giving out for commercial purposes.As it is known, a gas station holds dangerous substances that cancause fire upon their leakage. John should not just look at theresource worth of the property because they are going to be used forcommercial purposes, but should also look at the risks involved byrenting the rooms for use as a gas station. On thes other hand,although hiring the other lot as a liquor store is not a bad idea, itis an excellent idea for John to provide the right informationconcerning the previous condition of the land under the property inorder to avoid future litigations. An additional information that Iwould want to know is whether Jack’s Last Chance Liquor Store knewabout the previous condition of the land where the property lies.

WorksCited

Korngold,Gerald &amp Goldstain, Paul. RealEstate Transactions: Cases and Materials on Land Transfer,Development and Finance.New York: &nbspFoundation Pr 3rd Rev edition, 1997. Print.