Conveyancing

Question 1

Conveyancing Issues

Answer 1

(1) Statute of Frauds
(2) Deeds
(3) Marketable Title
(4) Warranty Deed
(5) Recording Statutes
(6) Mortgages

Question 2

Valid Deed

Answer 2

(1) Executed

(2) Delivered

(3) Accepted

(4) Adequate description of property

Question 3

Quitclaim Deed

Answer 3

(1) Conveys only what the seller has

(2) Does not affect warranty of marketable title

Question 4

Marketable Title

Answer 4

Title reasonably free from doubt - title that a reasonably prudent buyer would be willing to accept

NOT marketable if it has undisclosed encumbrance or condition

Question 5

Warranty Deed

Answer 5

Present:
(1) Seisin
(2) Right to Convey
(3) Against Encumbrances

Future:
(1) Quiet Enjoyment
(2) Warranty
(3) Further Assurances

Question 6

Race Notice Statutes

Answer 6

(1) Race
(2) Notice
(3) Race Notice Statutes

Question 7

Race Statute

Answer 7

Whoever records first prevails, notice is not relevant, don’t even need to be BFP

Question 8

Notice Statute

Answer 8

Subsequent BFP prevails over a prior grantee who failed to record

Question 9

Race-Notice Statute

Answer 9

Subsequent BFP who ALSO RECORDS before prior grantee prevails or prior grantee who didn’t recor

Question 10

Mortgages & Deeds of Trust Overview

Answer 10

(1) Mortgage
(2) Foreclosure - Right of Redemption
(3) Owner of Note?
(4) Deed of Trust - Foreclosure
(5) DT - Deficiency Judgment

Question 11

Mortgage

Answer 11

Security Interest in property which secures the repayment of a loan.
Typically in writing for SoF.

Question 12

Foreclosure

Answer 12

Mortgagee gets the title that existed as of the date of recording.

If properly foreclosed, jr interests are extinguished, but not sr. interests.

Failure to give notice to jr interests will make it ineffective to those interests.

Question 13

Equitable Subrogation

Answer 13

Junior mortgagee pays off senior mortgage and steps into their position

Question 14

Right of Redemption

Answer 14

Equitable redemption.
- The foreclosed-out mortgagor has the right to redeem by bringing loan current before foreclosure sale.

Statutory redemption.
- statutory right to repurchase property by paying all indebtedness after foreclosure sale, often for one year.

Question 15

Deed of Trust

Answer 15

LIKE a mortgage (CA)
Beneficiary = lender
Trustor = borrower
Trustee = usually disinterested third-party, e.g., title company.

Question 16

Deficiency Judgment

Answer 16

Obtain money against the borrower only if
(1) not a single family home or up to 4 single family residences, and
(2) the mortgagee or beneficiary uses a judicial foreclosure.