Property Paper 4

1

Wilk bought an apartment building from Dix Corp. There was a mortgage on the building securing Dix’s promissory note to Xeon Finance Co. Wilk took title subject to Xeon’s mortgage. Wilk did not make the payments on the note due Xeon and the building was sold at a foreclosure sale. If the proceeds of the foreclosure sale are less than the balance due on the note, which of the following statements is correct regarding the deficiency?






2

On April 6, Ford purchased a warehouse from Atwood for $150,000. Atwood had executed two mortgages on the property: a purchase money mortgage given to Lang on March 2, which was not recorded; and a mortgage given to Young on March 9, which was recorded the same day. Ford was unaware of the mortgage to Lang. Under the circumstances






3

Which of the following conditions must be met to have an enforceable mortgage?






4

On February 1, Frost bought a building from Elgin, Inc. for $250,000. To complete the purchase, Frost borrowed $200,000 from Independent Bank and gave Independent a mortgage for that amount; gave Elgin a second mortgage for $25,000; and paid $25,000 in cash. Independent recorded its mortgage on February 2 and Elgin recorded its mortgage on March 12. The following transactions also took place: • On March 1, Frost gave Scott a $20,000 mortgage on the building to secure a personal loan Scott had previously made to Frost. • On March 10, Scott recorded this mortgage. • On March 15, Scott learned about both prior mortgages. • On June 1, Frost stopped making payments on all the mortgages. • On August 1, the mortgages were foreclosed. Frost, on that date, owed Independent, $195,000; Elgin, $24,000; and Scott, $19,000. A judicial sale of the building resulted in proceeds of $220,000 after expenses were deducted. The above transactions took place in a notice-race jurisdiction. Frost may redeem the property before the judicial sale only if






5

A mortgagor’s opportunity to redeem will be terminated by a judicial foreclosure sale unless






6

Rich purchased property from Sklar for $200,000. Rich obtained a $150,000 loan from Marsh Bank to finance the purchase, executing a promissory note and a mortgage. By recording the mortgage, Marsh protects its






7

Which of the following rights is (are) generally given to a lessee of residual property? I. A covenant of quiet enjoyment. II. An implied warranty of habitability.






8

Which of the following methods of obtaining personal property will give the recipient ownership of the property? Lease . . . . Finding abandoned property






9

Which of the following forms of tenancy will be created if a tenant stays in possession of the leased premises without the landlord’s consent, after the tenant’s one-year written lease expires?






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