missed questions 2

Question 1

What does duress require? What if something outside the control of the buyer forces a sale?

Answer 1

Duress is an improper threat that deprives a party of meaningful choice. Examples of improper threats include threats of a crime, a tort, criminal prosecution, or pursuing a civil action in bad faith. Here, the rancher did not make any threats, and there is no indication that the student was deprived of a meaningful choice to sell the property to someone else.

Look at unconscionability instead. A court may modify or refuse to enforce a contract on the ground that it is unconscionable. A contract is unconscionable when it is so unfair to one party that no reasonable person in that party’s position would have agreed to it.

Question 2

entitled to damage for lost sales when the store selling is new?

Answer 2

However, this is a new business venture without a history of past sales, and it is unclear how much of these sales would constitute profit—the cost of the goods and other expenses would need to be deducted. Without this information, the amount of lost profits is too speculative and would be less than $10,000.

Question 3

An independent trucker and a manufacturer entered a written contract for the delivery of a farming implement from the manufacturer to a farmer. Under the terms of the contract, the trucker promised “to deliver a farming implement from the manufacturer to the farmer,” and in exchange, the manufacturer promised “to pay the trucker if the trucker delivers the implement directly to the farmer after picking it up.” The trucker picked up the implement but, instead of driving directly to the farmer, drove 100 miles out of his way to pick up another item from a third party before delivering the implement to the farmer. The manufacturer, unaware that the trucker had failed to deliver the implement directly to the farmer, refused to pay the trucker.

Who has breached this contract?

Answer 3

Neither party.

Here, the trucker fully performed his promise to deliver a farming implement from the manufacturer to the farmer, so the trucker has not breached the contract (Choices A & B). However, the manufacturer’s duty to pay the trucker was expressly predicated on the trucker’s direct delivery of the implement to the farmer. The trucker did not fully satisfy this condition precedent because he took a 100-mile detour, so the manufacturer’s performance is not due (Choice C). Therefore, neither party has breached the contract.*

Question 4

can a nonrepudiating party who materially breaches the contract recover damages for the other party’s anticipaotry breach?

Answer 4

No, because the material breach discharges the other party’s duty to perform.

Question 5

who is a merchant under the firm offer rule?

Answer 5

(1) one who regularly deals in goods of the kind involved, (2) one who, by occupation, holds out as having knowledge or skill peculiar to the practices or goods involved, and (3) any businessperson when the transaction is of a commercial nature.

Question 6

when will the SoF not prevent an oral modification

Answer 6

(1) the promisor should have reasonably expected to—and did—induce action or forbearance on the modification and (2) injustice can be avoided only by enforcing the modification.

Question 7

what must a buyer who rejects perishable goods do?

Answer 7

A buyer must retain rejected goods for a reasonable time to allow the seller to reclaim them. In the absence of other instructions, the buyer must sell the goods on the seller’s behalf if the buyer is a merchant, the goods are perishable, and there is no local agent to whom the goods can be returned.

Question 8

course of dealing vs course of performance

Answer 8

Course of dealing is a sequence of conduct concerning previous contracts between the parties that can reasonably establish a common basis of understanding for interpreting their conduct. Course of performance deals with the contract in question.

Question 9

A party to a contract whose duty to perform is subject to a condition can waive the condition by

Answer 9

words or conduct

Question 10

An offer terminates when the offeror dies or becomes mentally incapacitated—unless

Answer 10

the parties formed an option contract. Then the offer will not terminate because consideration was paid to keep the offer open for a specified period of time.

Question 11

A life estate is a present possessory interest that is limited in duration by the life of the grantee, unless otherwise specified. The grantee, as a life tenant, assumes certain duties with respect to the estate. These duties include paying ordinary taxes on the real property, but only

Answer 11

to the extent that the life tenant receives a financial benefit from the property (Choice A). The financial benefit is determined differently depending on whether the life tenant:

occupies the property – in which case the financial benefit is measured by the fair market rental value of the property (e.g., reasonable rental value) or

does not occupy the property – in which case the financial benefit is measured by the income derived from the land (e.g., third-party rental income, crops grown on the land)

Question 12

When a life estate ends, title reverts to the grantor or specified remainderman. Consequently, if the life tenant fails to pay property taxes, then the holder of a remainder interest (here, the daughter) may pay the taxes to

Answer 12

protect that interest—but has no duty to the life tenant to do so (Choice D). The remainderman can then sue the life tenant for taxes paid, not to exceed the value of the financial benefit that the life tenant received from the property.

Question 13

A fee simple subject to an executory interest is

Answer 13

a present estate limited by durational or conditional language. Upon the occurrence of the specified event or condition, title automatically passes to a third party who holds a future, executory interest.

Question 14

RAP and right of first refusal

Answer 14

Although the Rule Against Perpetuities (RAP) applies to rights of first refusal, it does not apply to leases. As a result, RAP does not apply to a right of first refusal granted in a lease (as seen here).

Question 15

A right of first refusal is a x restraint on alienation that

Answer 15

partial restraint.

if reasonable, is valid and enforceable by an injunction. This right is generally reasonable if the holder of the right can purchase the property under the same terms offered to another party.

Question 16

A landlord and tenant have a legal relationship based on both:

Answer 16

privity of contract – their shared interest in the lease agreement and

privity of estate – their successive right to possess the property (i.e., the tenant’s current right of possession is immediately followed by the landlord’s future right of possession).

Question 17

assignment of lease and liability

Answer 17

Unless the lease states otherwise, either party can freely transfer his/her interest under the lease. Assignment is a complete transfer of a tenant’s interest to a third party (assignee) for the remainder of the tenant’s lease term (as seen here), so:

the original tenant retains privity of contract and remains liable for all covenants in the lease (e.g., rent)and

the assignee gains privity of estate and becomes liable to the landlord for the rent and any other covenants in the lease that run with the lease.

Because of this privity, the original tenant (the student) and the assignee (the employee) are jointly and severally liable for the landlord’s entire harm arising from a breach of the lease (e.g., failure to pay rent).*

Question 18

Under the written lease, the owner and the manufacturer had a tenancy for years—i.e., a leasehold estate measured by a fixed and ascertainable amount of time (here, one year). At the end of the fixed term, a tenancy for years

Answer 18

automatically expires. A tenant who remains on the premises after the lease expires without the landlord’s permission is considered a tenant at sufferance.

Unless required by statute, a landlord is not required to give a tenant at sufferance notice to vacate the premises before taking steps to recover possession of the property.

Question 19

equitable servitudes and covenants and RAP

Answer 19

RAP does not apply

Question 20

An easement by necessity is created when

Answer 20

(1) the dominant estate is virtually useless (e.g., landlocked) without the benefit of an easement across the servient estate, (2) the two estates were once a single tract of land, and (3) the necessity arose when the land was severed and the two estates were created.

Question 21

Under the doctrine of merger, the seller’s duties in a contract for the sale of real property—including the duty to deliver marketable title

Answer 21

merge into the deed at closing. As a result, these duties are enforceable thereafter only if they are contained in the deed.

Question 22

quitclaim deed and implied covenant of marketable title

Answer 22

Unless otherwise stated, an implied covenant of marketable title is part of a land-sale contract, regardless of the type of deed created. Under this covenant, the seller promises to deliver title that is reasonably free from doubt and under no threat of litigation, such that a reasonable person would accept and pay for it.

Question 23

merger doctrine impact on land-sale contract

Answer 23

However, under the merger doctrine, any obligations contained in the land-sale contract merge into the deed and are extinguished at closing.* As a result, these obligations are enforceable only if they are contained in the deed.

Question 24

A speculator and the original owner of a condominium unit entered into a contract for the sale of the unit. The contract, which contained no reference to the marketability of the title, called for the owner to transfer the unit to the speculator by quitclaim deed, which the owner did on the date called for in the contract.

A year later, the speculator entered into a contract to sell the unit to a third party at a price significantly higher than the price paid by the speculator for the unit. The contract specifically required the speculator to provide the third party with title to the unit free from all defects. Upon investigation, the third party discovered that the unit was subject to a restrictive covenant that rendered the title to the unit unmarketable and that the restrictive covenant had existed at the time that the speculator had purchased the unit. The third party refused to complete the transaction.

The speculator subsequently sued the original owner of the condominium unit for breach of contract.

For whom is the court likely to rule?

Answer 24

Unless otherwise stated, an implied covenant of marketable title is part of a land-sale contract, regardless of the type of deed created. Under this covenant, the seller promises to deliver title that is reasonably free from doubt and under no threat of litigation, such that a reasonable person would accept and pay for it. However, under the merger doctrine, any obligations contained in the land-sale contract merge into the deed and are extinguished at closing.* As a result, these obligations are enforceable only if they are contained in the deed.

Here, the covenant of marketable title was implied in the land-sale contract between the speculator and the original owner. But this covenant was extinguished when it merged into the deed upon closing, so the court will likely rule for the original owner (Choice A). This is true even if the speculator had sued under the deed as opposed to the land-sale contract. That is because the condominium unit was transferred to the speculator by a quitclaim deed, which contains no guarantees as to the state of title.

Question 25

Uniform Vendor and Purchaser Risk Act (real property)

Answer 25

(adopted by a minority of jurisdictions), the seller retains the risk of loss unless and until the buyer takes possession or title is transferred.

Question 26

The risk of loss to the cottage does not shift to the woman simply because she has insurance and can "more easily bear the loss." Instead,

Answer 26

the woman would likely be required to give the man credit against the purchase price equal to the amount she recovered under her insurance policy.

Question 27

When, as here, a grantee (buyer) takes title subject to an existing mortgage and neither the debtor (officer) nor the grantee makes any payments on the mortgage loan

Answer 27

only the debtor is liable for this default. Therefore, the buyer is not liable for the loan obligation. A grantee who takes real property subject to a mortgage does not agree to pay and is not personally liable for the debt. As a result, only the debtor is liable for any failure to make payments on the mortgage loan.

Question 28

A deed conveying a mortgagor's interest in the mortgaged property to a mortgagee in lieu of foreclosure allows the mortgagee to take immediate possession of the property without the formalities of a foreclosure sale. Any junior interests

Answer 28

remain attached to the property, and the mortgagee's interest is extinguished unless it was reserved.

Question 29

However, the mortgagee takes the property along with any junior interests attached to the property—e.g., the savings and loan association's second mortgage. And if the mortgagee accepts a deed in lieu of foreclosure without reserving the right to foreclose (as seen here),

Answer 29

then its mortgage is extinguished. As a result, the house remains subject only to the savings and loan association's mortgage.

Question 30

If a person acquires title by adverse possession, that title is (recording)...

Answer 30

good as a title traceable to a period record owner. Thus, if Abe aquired title by adverse possession, he is entitled to recover possession from Buyer. The applicable law under State B is a notice statute which provides that a purcahser need only purchase without notice of the prior interest to previal. The statute intends to protect subsequent purcahsers against interest holders who could have, but failed to record documents describing their interests. However, interest holders who acquired title by adverse possession do not possess documents describing their interests that could be recorded. As discussed above, if Abe acquired title to Whiteacre by adverse possession, then Abe did not possess documents that could have been recorded to described his interests. Accordingly, Abe is entitled to recover possession from Buyer.

Question 31

Perfect tender for installment contracts (UCC)?

Answer 31

Contracts for the sale of goods generally follow the UCC's perfect-tender rule, under which a seller must tender goods conforming to the warranty obligation in the contract. Substantial performance will not suffice. But this rule does not apply to installment contracts, which provide for the delivery of goods in multiple shipments, each to be seperately accepted by the buyer. Instead, installment contracts follow the substantial-impairment rule. This rule allows the buyer to reject tender of nonconforming goods when the nonconformity substantially impairs the value of that shipment to the buyer and cannot be cured.

Question 32

marketable title requirement

Answer 32

All land-sale contracts, unless otherwise provided, imply that the seller will convey the buyer marketable title on the date of closing. Title need not be perfect to be marketable. But it must be reasonably free from doubt and under no threat of litigation such that a reasonable person would accept and pay for it.

Question 33

Does a zoning code make a title unmarketable

Answer 33

An existing zoning violation may render title unmarketable, but the mere existence of a zoning code does not.

Question 34

Can a BFP rely on a forged or altered document to establish priority under the recording act?

Answer 34

No because the document is void.

Question 35

when must a deed be delivered to effectively transfer ownership of real property

Answer 35

during the grantor's lifetime (and then accepted by the grantee). There is no delivery if the grantor retains a right to recover the deed.

Question 36

Delivery of a deed timing

Answer 36

Delivery is presumed if the deed is recorded. But this presumption can be rebutted by evidence that the grantor did not intend to presently transfer ownership. And if the deed is not delivered during the grantor's lifetime, it is void and conveys no interest.

Question 37

When is a deed delivered? Accepted?

Answer 37

Delivery is presumed when the deed has been recorded or is in the grantee's possession. Delivery also occurs when the deed is physically handed to the grantee's agent--i.e., a third party acting on behalf of the grantee. Acceptance is presumed if the transfer is beneficial to the grantee.

Question 38

Is "reasonable market price" sufficiently certain and definite to form a contract?

Answer 38

Yes because market value can be determined objectively.

Question 39

When does constructive eviction apply?

Answer 39

When a landlord substantially interferes with the tenant’s use and enjoyment of the property by breaching a duty to the tenant, the tenant’s obligation to pay rent may be excused under the theory of constructive eviction. In order to end a lease before the end of its term by constructive eviction, the landlord must have breached a duty, which caused the loss of the substantial use and enjoyment of the premises, the tenant must give the landlord notice of the problem and reasonable opportunity to cure, and the tenant must vacate the property within a reasonable period of time. Not every interference with the use and enjoyment of the premises amounts to a constructive eviction. Temporary or de minimis acts generally do not amount to constructive eviction.

Question 40

repairs by tenant commercial vs residential?

Answer 40

Under the common law, there was no implied duty on the part of the landlord to repair leased premises. However, the majority of jurisdictions today enforce an implied duty upon the landlord to repair under a residential lease, even when the lease attempts to place the burden on the tenant, except for damages caused by the tenant. In contrast, courts are reluctant to imply a landlord’s duty to repair in commercial leases because the implied warranty of habitability does not apply in commercial leases. Here, it is not clear what language was in the commercial lease regarding repairs, but absent any specific duty in the lease to fix the air conditioner, the landlord was likely not required to make any such repairs.

Question 41

when does a lease (tenant for years) terminate?

Answer 41

Termination of a lease occurs automatically upon the expiration of the term. Termination may also occur before the expiration of the term when the tenant surrenders the leasehold, and the landlord accepts the return of the leasehold. When a tenant abandons the leasehold without justification, the landlord may treat the abandonment as an offer of surrender and could accept that surrender by retaking the premises.

Question 42

failure to mitigate tenant breaking lease on damages for rent

Answer 42

When a tenant abandons the leasehold, the landlord may treat the abandonment as an offer of surrender and accept such surrender, or the landlord may attempt to re-rent the premises on the tenant’s behalf and hold the tenant liable for any deficiency. The majority of jurisdictions now require a landlord to mitigate damages by attempting to re-rent the premises in the event that the tenant abandons the property and breaches of the lease. Accordingly, the landlord has a responsibility to make a good-faith attempt to re-rent the property. Because the landlord did not take any steps to re-rent the property, he is likely not entitled to any unpaid rent.

Question 43

anticipatory breach and leases

Answer 43

Furthermore, the doctrine of anticipatory breach does not apply to leases. While the landlord may sue the tenant for rent as it becomes due, a landlord may not sue for future rent under the lease.

Question 44

what does the tenant get if a property is condemned

Answer 44

Unless otherwise provided under a lease, a taking of all or part of a leasehold under the power of eminant domain entitles the tenant to a share of the condemnation awar. The tenant's share is equal to the fair market value of hte condemned leasehold plus compensation for any continued obligation to pay rent.

Question 45

Extrinsic evidence of intent of a will?

Answer 45

The parol evidence rule prohibits a court from rewriting a will that lacks significant ambiguities.

Question 46

Caveat Emptor

Answer 46

Common-law doctrine. A seller has not duty to disclose property defects to the buyer unless otherwise agreed. Note: The majority of jurisdictions have enacted statutes that require sellers of residential property to disclose any known material defects that cannot be reasonably discovered by the buyer.

Question 47

when does a person receive equitable title to a property

Answer 47

Under the doctrine of equitable conversion, a purchaser receives equitable title to property when he/she enters an enforceable sales contract (e.g. by paying the sale price). Equitable title is a real property interest that gives the purchaser the right to obtain full ownership of the property upon closing (e.g. when the seller delivers the deed).

Question 48

mortgage and fixtures

Answer 48

The recipient of the mortgage has a legal interest in the mortgaged property and any fixtures later added to that property. A fixture is an object that is 1) attached to real property with the intent that it remain attached and 2) used for some larger component (e.g. lighting, water draining) or function (e.g. plumbing, septic) of the real property. In other words, a fixture is an object that is so attached to real property that it is essentially a part of that property.

Question 49

easement holder and duty to repair

Answer 49

An easement holder has a duty to repair and maintain the easement. If the easement is shared by other easeement holders or the servient-estate owner, those parties are obligated to contribute to the reasonable costs of repairs and maintenance.

Question 50

types of emblements

Answer 50

Crops. Fructus industrailes - produced through cultivation and considered personal property. Fructus naturales - occur naturally (i.e. without human assistance) and considered real property.

Question 51

doctrine of emblements

Answer 51

A tenant has the right to reenter land to remove, harvest, and cultivate crops that the tenant planented before the tenancy terminated if the tenant's lease was for an uncertain duration and teriminated through no fault of the tenant.

Question 52

Transfer of easeements in gross (benefit of the easement holder personally)

Answer 52

Traditionally could not be transferred, but most courts now allow transfer if the easement is for commercial use or if the parties intended it to be transferable. Whether the easement can also be aportioned (i.e. divided up) turns on whether it is: nonexclusive - in which case the easemeent cannot be divided among multiple transfereers or exclusive - in which case the easement generally can be divided among multiple transferees. However, the apportionment of an exclusive easement in gross is subject to the "one stock" rule. Under this rule, the collective use that the transferees can make of the easement is limited to the use that the transferor made of the easement.

Question 53

"As is" to get around to duty to disclose defects in real property

Answer 53

Sellers of residential property must disclose known material defects that the buyer cannot reasonably discover. However, the seller can disclaim this duty (e.g. with an "as is" clause) so long as the seller has not fraudulently misrepresented or concealed the condition of the property.

Question 54

requirements to resell goods after breach or repudiation under the UCC

Answer 54

Under the UCC, when a buyer breaches or repudiates a contract for the sale of goods, the seller may resell the goods and sue for the contract price minus the resale price. A seller intending to resell the goods in a private sale must first give the buyer reasonable notice of his intent to resell. But the resale must (i) be only of goods identified in the contract and (ii) must be commercially reasonable.

Question 55

A lifetime transfer of a joint tenant's interest severs that interest from the joint tenancy. The transferee holds that interest as a tenant in common with the remaining joint tenant(s). If two or more joint tenants remain after the transfer,

Answer 55

then they retain a joint tenancy with respect to each other.

Question 56

vested vs contingent remainder

Answer 56

A remainder is a future interest in real property that is capable of becoming possessory upon the expiration of a life estate or term of years. Remainders are either: vested – not subject to any condition precedent AND held by an identifiable living person (e.g., "then to my son and daughter") or contingent – subject to some condition precedent (other than the natural termination of the prior estate) OR held by an unknown or unborn person (e.g., "then to my heirs, but only if they survive my friend").

Question 57

Vested remainder subject to complete divestment

Answer 57

A vested remainder is subject to complete divestment if the occurrence of a subsequent condition will eliminate the remainder interest (e.g., "then to my heirs; but if none survive my friend, then to my lawyer").

Question 58

When is early termination allowed for a tenancy at will

Answer 58

A tenancy at will is a leasehold estate that has no specific term and continues so long as the landlord and the tenant desire. This tenancy can generally be terminated by the landlord or the tenant. But if only one party is expressly given the right to terminate the leasehold, the arrangement may be deemed unconscionable if, for example, the arrangement is unfair due to one party's superior bargaining power. In such a case, both parties are given the ability to terminate the lease.

Question 59

A third-party owner of subsurface rights is strictly liable for any failure to

Answer 59

support the land and buildings that predate the conveyance of those rights, provided that the damage would have occurred in the land's natural state.

Question 60

effect of failure to record a mortgage

Answer 60

Failing to record a mortgage can affect the bank's rights in the house with respect to other creditors, but this does not alter the mortgagors obligations to the bank in the absence of a novation.

Question 61

exoneration-of-liens doctrine

Answer 61

The common-law exoneration-of-liens doctrine* applies when a devisee (the son) receives a specific devise of real property (the house) that is subject to an encumbrance (e.g., mortgage, lien). Under this doctrine, the devisee is entitled to pay off any encumbrances on that property—including a purchase-money mortgage—from the remaining assets in the testator's estate (Choice B). As a result, the personal representative should accede to the son's demand to use the estate's remaining assets to pay off the mortgage on the house. *Most states have abolished this doctrine, and payment of an encumbrance on devised real property is required only if the will so specifies.

Question 62

Doctrine of ademption

Answer 62

The doctrine of ademption applies when a testator transfers property after executing a will and causes a devise to fail in two circumstances: Ademption by extinction – when the testator does not own a specifically devised asset at the time of death* Ademption by satisfaction – when the devisee received the devised asset or a satisfactory substitute during the testator's life In either case, the devisee takes nothing unless the will expressly states otherwise. And proceeds from the sale of the specifically devised asset—and any property acquired with those proceeds—become part of the general estate. The general estate will then be distributed in accordance with the remainder of the will.

Question 63

An absolute deed transferring unrestricted title to property with the intent to secure a debt is usually enforceable as an equitable mortgage unless

Answer 63

competing equities (e.g., good-faith purchaser) take precedence.

Question 64

In anticipation of the Fourth of July holiday, a fireworks dealer borrowed money from a lender to finance the purchase of fireworks to sell at a roadside stand. Later the same day, the dealer transferred ownership of real estate to the lender. The deed, which contained no mention of the loan, was promptly recorded by the lender. When the dealer paid off the loan, he demanded that the lender return the property, contending that the parties had an oral agreement that the lender would return the property when the loan was paid off. The lender instead sold the property to an unrelated third party who had no knowledge of the loan. The dealer files an action against the lender seeking the return of the property. Which of the following is the most likely reason for the dealer's action to fail?

Answer 64

The property has been sold to a good faith purchaser

Question 65

For a deed to be effective, the grantor must have the present intent to convey ownership of the property interest to the grantee, and the grantee must accept the transfer. Intent is presumed when

Answer 65

the deed has been recorded, and acceptance is presumed if the transfer benefits the grantee.

Question 66

To create a joint tenancy, the property must be conveyed with the express intent to create survivorship rights and four unities must coexist (PITT): Possession – tenants share an equal right to possess or use the property Interest – tenants have an equal interest in the property Time – property interests simultaneously vest in all tenants Title – property interests received in the same instrument of conveyance A conveyance that meets some but not all of these requirements creates a

Answer 66

tenancy in common, in which each tenant has an equal right to possess the entire property but no survivorship rights. As a result, a tenant in common's interest can be devised or inherited.

Question 67

A covenant is terminated by abandonment when

Answer 67

an affirmative act—something more than neglect or nonuse—shows a clear intent to relinquish the covenant.

Question 68

In a jurisdiction that treats an installment land contract like a mortgage, a buyer in default may redeem the property by

Answer 68

tendering to the owner the full balance due under the contract prior to foreclosure.

Question 69

Can a buyer who assumed a mortgage as part of the purchase prie raise defenses to the mortgage that the original debtor could have?

Answer 69

A buyer who assumed a mortgage as part of the purchase price may not raise defenses—e.g., duress, statute of limitations, lack of legal capacity—that the debtor could have raised to avoid the mortgage obligation. Otherwise, the buyer would be unjustly enriched.

Question 70

A buyer who assumes a mortgage is primarily liable for the debt. And if the assumption of the mortgage was part of the purchase price

Answer 70

then the buyer may not raise defenses that the debtor could have raised against enforcement of the mortgage obligation.

Question 71

A man purchased undeveloped land with a bank loan secured by a mortgage on the property. The man recorded the deed, and the bank promptly recorded the mortgage. A year later, the man decided to sell the property to a wealthy widower. The widower purchased the property, recorded his interest, and assumed the mortgage. Several years later, the widower gave the property to his daughter. The widower did not tell his daughter about the mortgage but instead continued to make the mortgage payments. The deed, which contained no mention of the mortgage, was promptly recorded by the daughter. When the widower died, he devised all of his real property to his daughter. He left the remainder of his estate to his son. Following the widower's death, no one made payments on the bank loan, causing it to fall into default. May the bank foreclose on the property?

Answer 71

Yes, because the bank recorded its mortgage.

Question 72

A "due on sale" clause allows a lender to demand full payment of any remaining mortgage debt if the debtor transfers the mortgaged property without the lender's written consent. If this clause is waived, the debtor

Answer 72

remains liable on the note—even after transferring the mortgaged property—until the debtor is released by the lender.

Question 73

A grantee who assumes the mortgage expressly agrees to pay and becomes primarily liable for the debt, while the original debtor becomes

Answer 73

secondarily liability as a surety. This gives the lender the right to sue either party upon default, and the original debtor can recover any amount paid from the grantee.

Question 74

A defeasible life estate is a present possessory interest that terminates upon the end of the measuring life or the happening of a stated event. If title passes to someone other than the grantor when the present interest terminates, then the estate is followed by

Answer 74

a remainder and an executory interest.