Land Conveyance

Question 1

Redlining (Rule Statement)

Answer 1

practice of denying the extension of credit to specific geographic areas due to the income, race, or ethnicity of residents

Question 2

4 elements that reverse redlining claimant must show

Answer 2

(1) lender followed a facially neutral, (2) but artificial, unnecessary, and arbitrary policy, (3) that substantially caused lending patterns (4) with a statistically imbalanced negative impact on a minority group

Question 3

Race Jx

Answer 3

First person to record wins (notice is irrelevant)

NC is a race jx

Question 4

Notice Jx

Answer 4

Lastt BFP takes; doesn’t matter who records first

Question 5

Race-Notice Jx

Answer 5

First BFP to record takes

Question 6

Shelter Rule

Answer 6

a person who takes from a BFP is protected by the recording act and has the same rights as his grantor (even if not a BFP)

(if B conveyed to C → C would be protected under this rule)

This rule is necessary if the recording act is to give B the benefit of his bargain by protecting his market.

Question 7

Bona fide purchaser

Answer 7

BFP has (1) NO NOTICE and (2) PAID VALUABLE CONSIDERATION ($)

Can’t be BFP if rec’d prop as a gift

Question 8

What are the 3 types of notice

Answer 8

1. Actual: personal knowledge of prior interests
2. Record: notice based on property records (found via appropriate title search)
3. Inquiry: notice is based on facts that would cause a reasonable person to make inquiry into the possible existence of an interest in real property; based on person’s duty to investigate relevant circumstances (a type of constructive notice imputed on buyers)

Question 9

Rule for inadequacy of sale price at foreclosure sale

Answer 9

all jx adhere to the rule that mere inadequacy of the foreclosure sale price won’t invalidate the sale, absent fraud, unfairness, or other irregularity

Question 10

Equitable Mortgage Doctrine

Answer 10

ct will treat a transaction that’s on its face a deed, lease, or some other form of transfer as a mortgage (must look at intention of parties)

Question 11

Mortgage

Answer 11

a security interest in real property that guarantees repayment of the debt

Question 12

3 types of deeds

Answer 12

1. General warranty deed
   -Provides greatest degree of protection, warranting title against all defects in title, whether they arose before or after grantor took title
2. Special warranty deed
   -2nd best in degree of protection–contains warranties only against grantor’s own acts, no one else’s
   -E.g., if defect is a mortgage on the land executed by grantor’s predecessors in ownership, grantor isn’t liable
3. Quitclaim deed
   -Contains no warranties of any kind
   -Merely conveys whatever title the grantor has, if any, and if the grantee of a quitclaim deed takes nothing by the deed, the grantee can’t sue grantor
   -Note: title must still be marketable