Please respond to teachers question.Teacher Question: This weeks bonus is a tough one dealing with the Statute of Frauds and a rather unique condition that applies to the Statute of Frauds and all real estate contracts. What is that unique condition? Please respond to each student. Provide 1 resource per postInitial PostChapter 5: Title TransferWhy is it important to transfer title to real estate using a written documentthe deed? What purpose does the general warranty deed serve in the process? What purpose does a special warranty deed serve and under what circumstances would someone who is in the market for a home consider using the special warranty deed? Which deed is better and provides a greater level of protection? When should a home owner consider the use of a quitclaim deed and under what circumstances should an individual seek legal advise to use a quitclaim deed?Chapter 6: Public Records and Transfer of Real EstateThe basis of all real estate transactions in the United States has been the use of public records, recorded deeds and title searches. How is the title search related to a deed? What role does the recorded deed play in the process and why should all real estate transactions be made a matter of public record? How far back should a title search go (contact a title company in your home state) and how back far does the county recorder in your county record land holdings (contact county recorderâs office to be sure)Chapter 7: Contracts and the Statute of Frauds (Mandatory)Contracts are the essential part of all real estate transactions and no real estate can be transferred without the use of a written contract to prevent fraudulent practices and to be enforceable in a court of law. All real estate transactions are subject to the statute of frauds law. The law stems from British common law and was first established in 1677. (This chapterâs primary purpose is the discussion of a basic contract and later on in the course we will add the necessary elements for real estate transactions.)Please outline and briefly discuss the 5 elements of a generic legally binding contract. Which element of the contract do you consider the most important as related to real estate? Justify. What is your opinion of the Statute of Frauds? Does it slow down the contract process? Student 1Chapter 7: Contracts and the Statute of FraudsIn order for a generic contract to be legally binding, it needs five elements. They are an offer, someone to accept, competency, legal intent, and consideration. An offer is the question that asks what you want to do. For example, would you like to buy this house for $170,000. Someone to accept is the acceptance element. This consists of someone being offered and they agree to the terms. It has to be voluntarily accepted. No one can be forced into the contract. Competency is having both parties know what they are getting into. A person must not be under the influence of alcohol or any other impairing drug. This also applies to little kids or people will dementia. Legal intent is that both parties know that the contract will be legally binding. It has to be something that is legal to do, and the opposing parties know that they could be sued if they do not complete their section of the contract. Finally, consideration refers to what are you going to pay. This is usually money but can also extend to knowledge, patents, and expertise.Every single one of these elements are important. The most important element, in my opinion, is the offer. It will not be possible for a contract to be put in place if you dont start with an offer. All the other elements come into play after you make your offer. It is the foundation of the contract. If the foundation of the contract is terrible, the whole contract will fail. A good example is someone offering a person a million dollars if they go rob a bank. All the other elements will show that offer is not good which, in turn, makes it an illegal contract.I already had some previous knowledge on the Statute of Frauds, since my previous class before this was Business Law. It has six categories which it falls under: land, sale of goods that exceed $500, marriage, contracts outside of a year, promises by a guarantor, and promises by an executor. I personally like the Statute of Frauds because it requires documentation. In the military there is a popular saying If there is no documentation, it didnt happen. This keeps
people from having the whole he said she said debate. No one knows if what they are saying is true or not. When the contract is written down or documented, it allows courts to enforce the contract. It can slow down the contract process by requiring someone to write up the contract and having signatures. There are ways around the Statute of Frauds. If it doesnt fall into any of the six categories, they are not required to be under writing for the Statute of Frauds.ReferencesChen, J. (2020, December 14). Statute of Frauds. Retrieved January 20, 2021, from londonessays.com Leonard, K. (2019, February 04). 5 Requirements for a Contract. Retrieved January 20, 2021, from londonessays.com of frauds. (n.d.). Retrieved January 20, 2021, from londonessays.com Student 2Chapter 5: Title TransferClass,The relation between a title and a deed is when it comes to a buyer obtaining a home from a seller, both the deed and the title transfer to the buyer so that there is full ownership. The importance of transfer title to real estate in a written document is to assure that there is the signing by both parties of a detailed disclosure of the property that is provided through writing. There must be a detailed in writing description of the property that is being sold or purchased so that if there are any problems, they can be resolved and if need be, they can be taken to court and resolved based on the in writing proof and signature from both parties. The purpose of the general warranty deed is to assure proof that the seller has full ownership and title in order to be capable of selling the property. This is something that protects from fraudulent sales of a property that may not be fully owned by the seller. Special warranty deed is something that is more often used for commercial properties rather than real estate and is used to guarantee title for the specific time that the property was owned by the seller. A special warranty deed to real estate offers protection to the buyer through the sellerâs guarantee that the title has been free and clear of encumbrances during their ownership of the property. That is when you should suggest using this type of deed in order to assure the upmost protection. This type of deed offers the strongest protection as this is something that makes sure that the ownership of property is legit and can be transferred legitimately and that there are no issues that are being hidden in the back burner for the buyer to have surprise over. The quitclaim deed is often used during the transferring of ownership to children or one spouse transferring ownership to another or to trusts or LLCs. The quitclaim would be something that is used during the times of divorces, gifting to children or something that is being transformed to a business. There are often occurrences where legal action should be considered when there are divorces so that the last name changes or proper transfer can be done through the divorcing process. This process is often difficult so seeking legal advise to cover all of the nooks and crannies is very important. Reference:Kielar, H. (2020, November 16). Deed Vs. Title: Know The Difference. Retrieved from londonessays.com, H. (2020, December 11). Special Warranty Deed: Do You Need One? Retrieved from londonessays.com Student 3Chapter 6According to investopedia, a deed is a written and signed legal instruments that is used to transfer ownership of real property from the old owner (grantor) to the new owner (grantee) When conducting a title search, there will be many documents to look through such as deeds, recorded papers, and contracts. The purpose of conducting the title search is to ensure the property you are buying is free and clear of any liens, judgments, or other claims to the property. These things are important to know as they could result in not being able to find proper financing, or even finding out that the seller really doesnt have the right to sell the property. The recorded deed helps to legally determine who the owner of the real property is and helps to protect you from claims on the property. Making this information a matter of public record is important because it is used for tax purposes as well as other people who may want to buy the property. If you are the old owner, then you can be subject to fines and taxes for the property, and if you are the new owner the only way to prove it is to make it a matter of public record.