Flashcards Studio

An 83-year-old landowner, Rosa, owns an urban lot of modest size. A licensed real estate broker who has long advised her on property matters uses Rosa's trust to induce her to sign a deed transferring the lot to the broker for a price far below its market value. The deed is notarized and recorded. The broker then sells the lot to a purchaser for value, who also records. Rosa seeks rescission of the deed against the broker. (a) Identify the doctrine governing the validity of Rosa’s deed and the remedy available to Rosa. (b) Distinguish voidable contracts from void contracts and explain the effect of rescission on land when a third party has acquired it in good faith. (c) If the court grants rescission, what will happen to the purchaser’s title if he bought in good faith for value and recorded, and what remedies are available to Rosa against the broker?