MBE Property MC

Question 1

what happens to a second mortgage if a foreclosure sale satisfies the first mortgage but not the other?

Answer 1

buyer takes property free and clear of mortgage. knowledge irrelevant

Question 2

when does RAP apply/not apply to an option to purchase real property?

Answer 2

If Uniform Statutory RAP, RAP does not apply to option in commercial transaction
If common law, an option to purchase real property longer than >21 years in future invalid unless held by current lessee

Question 3

In what scenarios is a remainder said to be contingent?

Answer 3

1. created in a grantee that is unascertainable, or
2. subject to an express condition precedent to a grantee’s taking

Question 4

While the declaration gives the developer a general power to amend the declaration with respect to lots owned by the developer, the developer may not use this power in a way that would materially change the character of the development or the burdens on the existing community members unless the declaration fairly apprises purchasers that the power could be used for the kind of change proposed.

Question 5

is it permissible to make an inter vivos transfer of an executory interest?

Answer 5

it used to not be ok under common law, but now it’s fine

Question 6

when do covenants owe each other a fiduciary duty?

Answer 6

when they 1. jointly purchase property in reliance on each other, or
2. acquire their interests at the same time from a common source

duty arises when property is sold at foreclosure sale and purchased by covenant, allowing other cotenants to reacquire interests by paying their share of the purchase price