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MBE Property III
Property - Real Property Contracts and Mortgages
Term | Definition |
---|---|
Property Contracts and Mortgages - Coverage Areas | -Real Property Contracts --Requirements --Statute of Frauds --Risk of loss --Equitable Conversion -Mortgages --Subject to and assuming Grantees --Purchase Money Mortgages --Subrogation --Recording Statutes |
Checkpoint Items | -Real Property Contracts --Risk of Loss --Equitable Conversion --Contingencies -Mortgages --Purchase Money Mortgages --Technical Requirements --Recording statutes |
Deeds | Valid Delivery: 1)Proper Execution 2)Intent |
Equitable Conversion Common Law (majority) I | -Risk of Loss for casualty is placed on the buyer during the executory period -The buyer is the equitable owner of the land, whereas the seller, who hold the legal title, is the equitable owner of the full purchase price. |
Equitable Conversion Common Law (majority) II | ...-Shifts the burden and the benefits to the purchaser. |
Uniform Vendor & Purchaser's Risk Act | Risk of Loss is on the buyer only if he has legal title or possession of the property. |
Marketable Title | Every Contract for the sale of land contains an implied warranty of marketable title. -ENCUMBRANCES: 1)Mortgage 2)Lien 3)Easement 4)Equitable servitude 5)Zoning violation 6)Future interest |
Bona Fide Purchaser (BFP) | 1) Pays value (purchaser, mortgagee, judgment creditor) 2) Takes in "good faith" and 3)takes without notice (key MBE element) |
Recording Statutes | -Race-1st to record wins -Notice-Last BFP wins -Race/Notice- 1st BFP to record wins |
Mortgage & Foreclosure | -MORTGAGE: An interest in land created in writing providing security for the performance of a duty or the payment of a debt. -FORECLOSURE: The method by which the security is applied to satisfy the debt. |
Mortgage | -Deficiency Judgment: Allowed where the proceeds of the foreclosure sale are insufficient to satisfy the debt. -Mortgagee- two causes of action: 1)"In personam" on the debt 2)"in rem" on the security |
Rights of Grantee | -A grantee who "assumes' a mortgage is personally liable. -A grantee who takes "subject to" the mortgage is not personally liable. |
Subject to Mortgage | 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. The purchase money mortgage itself, however must be recorded. |
Exoneration | The right of a surety to compel the mortgagee to proceed first against the person or property primarily liable. |