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. |