MBE Real Property

Question 1

Mortgages

Co-Tenant Buyback Duties

Answer 1

A tenant who buys back co-owned property at a tax sale or foreclosure sale takes the property subject to the other co-tenants’ interests. The nonpaying co-tenants then have a reasonable time to contribute their share of the purchase price (as determined by their proportionate ownership interests). A co-tenant who fails to do so forfeits his/her interest in the property to the purchasing co-tenant.

Question 2

Land Sales

Is writing necessary to rescind contract for sale of land?

Answer 2

Under the statute of frauds, a writing is needed to create or modify an enforceable contract for the sale of land but is not needed to rescind the contract.

Question 3

Tenancies in Common

Co-tenant binding other to contract?

Answer 3

Although a tenant in common may freely transfer their interest to a third party, that tenant cannot transfer another co-tenant’s interest or bind another co-tenant to a contract affecting the shared property.

Question 4

Mortgages

Who can creditor obtain deficiency judgment against?

Answer 4

When a foreclosure sale results in a deficiency, the creditor can obtain a deficiency judgment against (1) the original debtor and/or (2) any party who has assumed the mortgage.