ARTICLES

In a recent case, the North Carolina Court of Appeals discussed the implications of a drafting mistake in a deed.  In S.T. Wooten Corporation v. Front Street Construction, LLC (COA 11-649), a deed mistakenly described a conveyance of a “1-1/2 fee simple interest” in the property rather than the entire undivided fee simple interest that both the buyer and the seller contemplated.  After the sale of the property, a bank made a large loan to the purchaser to fund development of the property and the bank’s deed of trust described the full undivided interest in the property as collateral for the loan.  Subsequently, a subcontractor began work on the project.  After the work began, the buyer and seller discovered the error and recorded a corrected…

One can never be too careful in drafting business and property contracts.  Unless remedies for a possible breach of the contract are carefully prepared by a business lawyer, unexpected consequences can occur.  On December 6, 2011, the North Carolina Court of Appeals interpreted a contract to purchase condominiums.  In The Vue – Charlotte, LLC, et al. v. Sherman (COA 11-595), an agreement for the purchase of condominiums contained a liquidated damages provision.  The purchasers argued that because the agreements provided only that the seller may recover liquidated damages in the event of the purchasers’ default but also provided that the purchasers were entitled to any available equitable remedies in the event of the sellers default, there were no remedies available to the seller other than…