Real Property Flashcards
If a second mortgage is given by the mortgagee without notice as to the first mortgage in a notice statute jx ______
the second mortgage has priority over the first mortgage.
What doctrine provides that title to property automatically vests in the transferee when a person who attempts to transfer real property that he does not own later becomes owner of that property?
After-acquired title
If a lease term requires landlord approval for assignment, does that restrict the tenant’s right to sublet?
No, the tenant is still free to sublet.
What power does the doctrine of part performance give the parties after the buyer pays a portion of the purchase price and substantially improves the land?
The power to compel specific performance of the land sale contract.
What affect does incapacity have on adverse possession after the initial AP trespass?
Incapacity after trespass will not toll the statutory period for AP.
Seller financed security interest takes what priority on a foreclosure sale?
First priority to the net proceeds from a foreclosure sale.
Race-notice statutes protect subsequent purchasers from what?
Unrecorded installment contracts without notice.
Are holders of unrecorded judgment liens protected under a recording act?
No, all other recorded interests will take priority.
What happens when a corporation assumes a mortgage?
It becomes personally liable for the mortgage loan payments.
What happens when a lender obtains title to property by means of an arrangement that seeks to prevent the buyer-mortgagor from exercising the equitable right of redemption?
The court will strike down the transfer because it circumvents the buyer-mortgagor’s equitable right to redeem mortgaged property.
What is “clogging” a buyer’s equity of redepmption?
When a lender creates an escrow or some other scheme to immediately sell property without a chance for equitable redemption.
What is the order of the application of the money from a foreclosure sale?
Attorney, Bank, Contractor
Is a co-tenant generally required to pay rent to the other co-tenants for the value of her own use of the property?
No.
What can a co-tenant collect from other co-tenants?
Contribution from other co-tenants for paying more than his portion of necessary or beneficially spent operating expenses (taxes or mortgage interest) - but not repairs.
How do you determine whether co-tenants must pay contribution to other co-tenants who beneficially pay for a portion of the land’s necessary or beneficially spent operating expenses?
Determine whether the amount spent is less than the fair rental value of the property.
If less than fair rental value of the property, no contribution entitlement.
When is a right of first refusal not subject to the Rule Against Perpetuities?
When the right is given in conjunction with a lease.
When does does notice matter for a race notice situation?
Notice at the time of the sale - not at the time of the recording.
Purchase money mortgages have priority over what?
All earlier non-purchase-money mortgages and
liens (including judgment liens)
whether or not recorded.
Absent some agreement between the mortgagees a mortgagor takes out two mortgages and then modifies the first mortgage for more money, what is the effect?
The second mortgage has priority over any additional amounts modified out of the first mortgage.
The first mortgage maintains priority in the original amount.
Generally, the money from a foreclosure sale is first applied to what?
Costs associated with the sale.
Generally, the money from a foreclosure sale is second applied to what?
The balance and interest of the mortgage obligation being foreclosed.
Generally, the money from a foreclosure sale is third applied to what?
To the mortgage obligations owed to all junior interest holders.
What happens when a senior mortgagee enters into an agreement with the landowner to modify the mortgage by making it more burdensome?
The modified portion will be subordinated to the interest(s) which would have been burdened by it.
Is an increase in the scope of an easement caused by use generated for the benefit of property other than the dominant estate permitted?
No.
When can a new party successfully recover half the cost of expenditures for maintaining a shard road between his property and another’s?
The agreement contains a covenant that runs with the land.
