Flashcards in Real Property - Property Ks & Mortgages Deck (16):
Valid Deed Delivery
1) Proper Execution
Physical possession not necessary.
Common Law Equitable Conversion
Risk of loss for casualty is placed on the buyer during the executory period. Buyer is equitable owner of the land. Seller holds legal title & is equitable owner of the right to the full purchase price. Shifts burden and benefits to purchaser.
Uniform Vendor & Purchaser’s Risk Act
Risk of loss is on buyer only if he has legal title or possession of the property.
Every contract for the sale of land contains an
implied warranty of marketable title.
4. Equitable servitude
5. Zoning violation (not restrictions)
6. Future interest
Bona Fide Purchaser (BFP)
1. Pays value (purchaser, mortgagee, judgment creditor) (getting by will doesn't count)
2. Takes in good faith” and
3. Takes without notice (key MBE element)
Race – 1st to record wins
Notice – last BFP wins
Race – Notice – 1st BFP to record wins
Rights of a Grantee
Grantee who “assumes” a mortgage is personally liable.
Grantee who takes “subject to” the mortgage is not personally liable. Where the deed makes no reference to the mortgage, it is presumed the grantee takes “subject to” and is not personally liable.
Purchase Money Mortgage
A purchase money mortgage takes priority over other prior mortgages, regardless of recording statutes. Even priority over homestead or others recorded 1st. The purchase money mortgage itself, however, must be recorded.
The right of a surety to compel the mortgagee to proceed first against the person or property primarily liable.
Mortgage Deed Requirements
1) identity of parties
2) description of property; &
3) intent to create a security interest
Senior Mortgage Modification
Junior mortgage prevails if modification materially prejudices holder of junior mortgage (ex: increasing amount of principal or increasing interest rate)
Transfer of property "subject to mortgage"
If mortgage payments aren't made, mortgagee can foreclose & force sale of property. Transferee of property doesn't have personal liability for debt.
Transferee of property "assumes mortgage"
If mortgage payments not made, mortgagee may foreclose and force property sale. Can have personal liability.
Foreclosure v. Redemption
Foreclosre (seller's remedy) - ability to get one's security interest back after non-payment
Redemption (buyer's remedy) - ability to get one's property back after payment has come due
Doctrine of Part Performance
May be used to enforce an otherwise invalid oral land contract. Requirements: buyer must show:
1) he paid all or part of the purchase price,
2) took possession of the land,
3) and made valuable improvements.