10. Property subject to tenancies.—If there is simply a description of the property and no more, the purchaser could expect to get a title in fee simple without any limitations or incumbrances. However, property, and especially bearing property, is often not free and clear. Frequently it is occupied by tenants who are paying rent to the owner under some kind of an agreement. The agreement may be a lease for a definite term, or it may be a monthly let ting. If it is a lease, the contract of sale should in clude after the description, "subject to lease at (here insert the rent) expiring (here insert the date the lease ends) ." The lease may affect only part of the prem ises. If this is so, it is desirable to state what part it affects. If part or all of the premises is occupied by monthly tenants, it is sufficient to state "subject to rights of present monthly tenants." The seller should guard against selling subject to any tenancy different from the lettings subject to which he owns the prop erty.
11. Restrictions on property.—Many parcels of land are affected by restrictions as to their use. Such restrictions are imposed on land in order to produce a uniform development or to protect other land of the owner. They may be such as affect the size of the plot on which buildings may be erected, the location of the buildings on the plot, or their size, character and use. It is not fair to ask a purchaser to take prop erty subject to any restrictions that may exist. What the restrictions are should be specified in the contract, and an opportunity should be given to the purchaser to examine the record of the instruments in which they are contained. When a purchaser is not absolutely certain that the restrictions will not inter fere with his contemplated use of the property, or in j uriously affect its value, he should get expert advice before signing the contract. In no case should he let himself be persuaded by any opinions of the seller as to their meaning. Should there be restrictions and none were mentioned in the contract of sale, the pur chaser could refuse to take the title.
If the seller is imposing the restriction at the time the sale under consideration is made, and the purchaser assents to it, the proper wording is as follows: "The deed conveying title to said premises shall contain restrictive covenants binding upon the purchaser, his heirs and assigns, as follows:" (the restriction is here set forth at length). In cases where the sale is made subject to existing restrictions the wording would be "Subject to restrictions contained in deed recorded in the office of the Register (or Clerk) of — County, in Liber — of Conveyances, Page 12. easement is a right thru, over,
under or to the use of part of property in favor of an other adjacent property. If A has the right to cross B's property to get a public highway that right is known as "right of way" and A's property should be sold subject to that easement.
The most frequent form of easement is the party wall right. A party wall is a wall erected on the di viding line of two lots, standing partly on each, and one that is common to two adjoining buildings. It is created by express agreement between the two owners, or where one owner erects the two buildings with a common wall between them. The owner of each building has the right to have the wall remain as long as his building stands. He can use it for its entire length, but he cannot lengthen it. He may build on it as high as he pleases provided he does not burden it so as to impair its usefulness. The party-wall right should be mentioned in the contract. If a wall stands entirely on one lot, but an adjoining owner has the right to insert beams in it to support his building, the right is known as a "beam right." Rights or easements in favor of the property go with it whether mentioned in the contract and deed or not.
13. Facts shown by a survey has been made, it will show any encroachments of build ings affecting the land covered by the contract, whether buildings on the lot encroaching on adjoining property, or of other people's buildings encroaching on it, or of the buildings on the lot encroaching on the public street. If the encroachment is not specifically mentioned in wording the description, it is well when such encroachment exists to follow the description by a clause somewhat as follows :—"Subject to state of facts shown by survey dated made by Civil Engineer." 14. Terms of the financial settlenzent.—Under the contract the seller agrees to part with certain prop erty, and in exchange the purchaser agrees to pay a definite sum of money in a specified manner. The gross price of the property is first expressed in the contract and the method of payment follows. The payment may be divided into four parts:— The amount paid on the contract as deposit or earnest money.
The amount of cash to be paid when the deed is delivered.
The amount of mortgage encumbrance subject to which the property is taken.