Property Flashcards
what are the requirements for constructive possession?
does a senior mortgagee
see card
A junior mortgagee must be included in a senior mortgagee’s foreclosure action because they have the right to pay off the senior mortgage to protect their own interest.
Rights of Junior Mortgagees:
- If a senior mortgage is in default, a junior mortgagee can pay off (redeem) the senior mortgage to avoid losing their interest in the property.
- If the junior mortgagee is not included in the foreclosure action, their interest in the property is preserved despite the foreclosure and sale.
must a junior mortgagee include a senior mortgagee in their foreclosure action?
no
Those with interests that are senior to the foreclosing party do not need to be included in the foreclosure action because their interests are not affected.
The buyer at the foreclosure sale takes the property subject to these senior interests, which remain intact.
what does a mortgagor have to do to redeem the statutory right of redemption?
he must pay to recover the land after the foreclosure sale has occured.
The amount to be paid is generally the foreclosure sale price, rather than the amount of the original debt.
if a mortgage exists on property when a real estate K is signed, is title unmarketable?
no. it may stil be marketable.
Every land sale contract contains an implied covenant that the seller will furnish marketable title on the date of closing.
Generally, encumbrances (i.e., mortgages, liens, easements, and covenants) render title unmarketable. However, a seller has the right to satisfy a mortgage or lien at the closing with sale proceeds
Thus, if the purchase price is sufficient and this is accomplished simultaneously with the transfer of title, the buyer cannot claim that the seller’s title is unmarketable.
If an easement is not provided for in the contract, it usually renders the seller’s title unmarketable.
What is the one exception?
A majority of courts have held that a beneficial easement that was *visible *or known to the buyer at the time of contracting does not constitute an encumbrance/render title unmarketable
regardless of which theory the jx uses, in most states when a JT executes a valid contract to convey his interest to another person, even if no actual transfer of title has been made yet (aka still in escrow), is the joint tenancy severed?
see card
YES
there has been an effective transfer of an equitaqble interest.
also note: if seller dies before closing, that is fine. the buyer is still entitled to a deed from seller’s estate and becomes a TIC with the other JT
