Property

Question 1

Subject: Property

What does a purchaser of real estate that takes title property subject to?

Answer 1

Subject: Property
A purchaser of real estate takes title subject to ANY MORTGAGE HE WAS AWARE OF or any mortgage that was RECORDED before the purchase.

Question 2

Subject: Property

Describe Notice- Race Statute

Answer 2

Subject: Property
Notice- Race Statute
A subsequent mortgagee (lender) who loans money without notice of a previous mortgage and RECORDS the mortgage first has priority over that previous mortgage.

Question 3

Subject: Property

What elements must a Residential Lease agreement contain?

Answer 3

Subject:  Property
A residential lease agreement must contain the following.
1.  The parties involved
2.  Lease payment amount
3.  Lease Term
4.  Description of Leased Property

Question 4

Subject: Property

What are the necessary requirements for a valid deed?

Answer 4

Subject: Property
The necessary requirements for a valid deed are
(1) the names of the buyer (grantee) and the seller (grantor)
(2) words evidencing an intent to convey
(3) a legally sufficient description of the land
(4) the grantor’s (and usually the spouse’s) signature
(5) delivery of the deed.

Question 5

Subject: Property

True or False: An unrecorded deed is not binding upon all persons having actual notice of its existence.

Answer 5

Subject: Property
False
An UNRECORDED deed IS BINDING upon all persons having ACTUAL NOTICE of its existence.

Question 6

Subject: Property

Define a quitclaim deed

Answer 6

Subject: Property
A quitclaim deed conveys to the grantee whatever interest the grantor has in the property. If the grantor has no interest, then the grantee receives nothing.

Question 7

Subject: Property

What does a general warranty deed warrant?

Answer 7

Subject: Property
A general warranty deed
1) the seller has title and the power to convey the property described in the deed.
2) the property is free from any encumbrances, except as disclosed in the deed.
3) the grantee (purchaser) will not be disturbed in his/her possession of the property by the grantor (seller) or some third party’s lawful claim of ownership.

Question 8

Subject: Property

Define Notice Statute

Answer 8

Subject: Property
Notice Statute- subsequent bona fide (good-faith) purchaser, WHETHER S/HE RECORDS OR NOT, wins over previous purchaser who DID NOT RECORD before that subsequent purchase

Question 9

Subject: Property

Define Race Statute

Answer 9

Subject: Property

Race Statute- the first to record deed wins REGARDLESS of notice.

Question 10

Subject: Property

Define Notice- Race (Race- Notice) Statute

Answer 10

Subject: Property
Notice- Race (Race- Notice statute)- the subsequent bona fide purchaser (WHO DOES NOT HAVE NOTICE OF A PREVIOUS MORTGAGE) wins over a previous purchaser only if S/HE RECORDS FIRST (i.e., a “race” to file first)

Question 11

Subject: Property
True or False- in order for a mortgage to be effective between the mortgagor (borrower) and mortgagee (lender), it must be signed by both parties.

Answer 11

Subject: Property
False
In order for a mortgage to be effective between the mortgagor (borrower) and mortgagee (lender), it must be signed ONLY by the MORTGAGOR.