Mixed Property

Question 1

What is a purchaser’s liability under a mortgage if they:

1. Assume the mortgage?
2. Take subject to the mortgage?
3. Default Rule?

Answer 1

Assume: personally liable

Subject to: not personally liable

Default: subject to

Question 2

What does a quitclaim deed guarantee?

Answer 2

The right to whatever property interest the grantor has.

More Info: Quitclaim Deed

Question 3

What does a special warranty deed guarantee?

Answer 3

A title free of defects from the grantor.

Question 4

What does a general warranty deed guarantee?

Answer 4

Title free of defects created by grantor and all prior title-holders.

More Info: General Warranty Deed

Question 5

What are the covenants of title?

Answer 5

Present (apply only at time of sale):

1. Seisin
2. Right to convey
3. Against encumbrances.

Future (apply after the time of sale):

1. Quiet enjoyment
2. General warranty
3. Further assurances

Question 6

When are liquidated damages clauses valid?

Answer 6

1. Damages are difficult to determine at the time of contract formation

And

2. Damages are reasonable

Question 7

Differentiate:

Equitable right of redemption v. Statutory right of redemption

Answer 7

Equitable Right of Redemption: right to redeem before foreclosure

Statutory Right of Redemption: right to redeem after foreclosure

Question 8

What is clogging the right of redemption?

Answer 8

When a clause is put in a contract waiving right of redemption; however, the equitable right to redeem can never be waived.

Question 9

What is a deed absolute considered?

Answer 9

A mortgage, not an outright conveyance.

Question 10

What can a seller of property take from the property?

Answer 10

1. Items that are not permanently attached to the property
2. Items that are not prohibitively heavy

And

3. Items that are not custom-designed specifically for the property

Question 11

If a life tenant leases their property to a person and then the life tenant dies, what happens to the tenant’s lease?

Answer 11

The lease terminates and the remainder becomes presently possessed automatically.

Question 12

Differentiate:

Trespass v. Nuisance

Answer 12

Trespass: a one time entry and interference with landowner’s exclusive possession (damage not required)

Nuisance: repeated entry and interference with landowner’s use of enjoyment of his possessed land

Question 13

What are the elements of a valid boundary agreement?

Answer 13

1. The parties uncertain/unaware of the true boundary
2. There is an express or implied agreement as to the location
3. Possession conforms to the agreement

The Result: possession is awarded based upon the agreed to line.

Question 14

When is a mortgagor’s interest in the mortgaged real estate satisfied?

Answer 14

1. The debt is satisfied

Or

2. Foreclosure has occurred

Question 15

When is the statute of frauds satisfied in an oral land sale contract?

Answer 15

The purchaser has 2 of the following:

1. Possession of the property
2. Paid the purchase price of the property
3. Made improvements to the property

Question 16

Who wins in the recording statutes:

1. Race
2. Notice
3. Race-Notice

Answer 16

Race: 1st to record wins

Notice: last BFP wins

Race-Notice: 1st BFP to record wins

Question 17

Differentiate:

Notice statute v. Race-notice statute

Answer 17

The word “first” will be in the race-notice statute.

Question 18

When does the shelter rule apply and what is its effect?

Answer 18

It applies when a grantee receives an interest in property from a bona fide purchaser (BFP): there are three transactions (Owner to BFP to Grantee).

The sheltered grantee is protected the same way as a BFP.

Question 19

Differentiate:

Riparian Rights v. Surface Water Rights

Answer 19

Riparian: Cannot exclude water from flowing downstream

Surface Water: Can exclude all surface water flow

More Info: Riparian Rights v. Surface Water Rights

Question 20

What duties of care are owed to:

1. Unknown trespassers
2. Known/Anticipated trespassers
3. Licensees
4. Invitees

Answer 20

Unknown Trespassers: no duty

Known Trespassers: possessor must warn of known dangers

Licensees: possessor must warn of known dangers

Invitees: possessor must inspect the premises and make it safe

Question 21

What happens to joint tenancy in a title theory jurisdiction when a mortgage is taken out on property?

Answer 21

The joint tenancy is severed because title passes to the mortgagee.

Question 22

If an adverse possessor asserts his right out of color of title, what is his property interest?

Answer 22

The entire interest found in the deed.

Question 23

In order for adverse possession to be tolled by disability, what must happen?

Answer 23

The adverse possession must begin during the disability. If the adverse possession occurs before the disability begins, there is no tolling.

Question 24

What is the open mines doctrine?

Answer 24

A life tenant has the right to continue operations of existing mines on the premises; however, the life tenant cannot open new mines.

Question 25

When can a **forced sale** be imposed on **tenants** in **common**?

Answer 25

When a fair and equitable division of the property is not possible.

Question 26

List the **property interests** the **rule against perpetuities** applies to?

Answer 26

1. Contingent remainders 2. Class gifts 3. Option to purchase connected with a fee 4. Powers of appointment 5. Executory interests 6. Rights of first refusal * More Info:* [Property Rights - RAP](https://law.wustl.edu/uploadedFiles/Crusto/Property.RAP.10.26.06.pdf)

Question 27

When can a **judgment** **creditor** be a **bona fide purchaser**?

Answer 27

1. The creditor gets lien on the property And 2. The creditor forecloses on the property and purchases the property at the foreclosure sale

Question 28

When can a **purchase** **money** **mortgage** take **priority**?

Answer 28

If a purchase money mortgage is recorded it takes priority over an earlier recorded mortgage.

Question 29

When a **senior mortgage** is **modified**, what happens to **junior interest**?

Answer 29

If the modification does not materially prejudice the junior interest, the senior stays in position. If modification is prejudicial to the junior interest, the junior mortgage takes priority over the increase in debt. *More Info:* [Mortgage Interests](http://dirt.umkc.edu/alterationofpriorities.htm)