Exam 15: Real Property: Sales and Mortgages

Stanislav contractually agreed to sell a piece of land to Tien for $250 000.When the time came to transfer title, however, Stanislav refused to complete the transaction.Tien consequently refused to pay any part of the price and justifiably sued for specific performance.At that time, the market value of the land was $300 000.The case was not decided by a court for five years.The judge then held that Stanislav was liable for breach of contract.At that time, the land was worth $400 000.If the court awards damages, Tien is entitled to receive

As used in the context of a mortgage, a "prepayment privilege"

Jessica wants to buy Zach's house and then turn it into a hair salon.Before the agreement of purchase and sale is signed

Primus Inc has agreed to purchase a piece of land from Cherie.That agreement is subject to a "condition" (as that word was used in this context in Chapter 16).The condition reflects the fact that Primus must arrange financing through a bank in order to afford the purchase.Which of the following statements is most likely to be TRUE?

Ava is a scoundrel.She owned a piece of land called Blackacre, which is located in a registry system jurisdiction.On Monday, she sold it to Marlon.Two days later, on Wednesday, she sold it again to Frank.She had no right to do so.Which of the following statements is TRUE?

Alisa successfully used the remedy of foreclosure against Ivan.Which of the following statements is TRUE?

A court has said that Pedrag holds the equity of redemption in a piece of land called Blackacre.The other party involved in the mortgage is Clarissa.Which of the following statements is most likely TRUE?

A person who occupies a piece of land without any right or permission to do so is legally known as

Evan borrowed $100 000 from Joanna.As security for the repayment of that debt, he created a mortgage over Blackacre.Blackacre consists of a piece of land and a house.Explain why is it important to both parties that Blackacre is protected by insurance.

Vigo has agreed to buy a house and he is about to sign a mortgage contract with the Bank of Sanguis.Which of the following should Vigo not expect to see?

Halle agreed to sell a piece of land called Blackacre to Justin for $200 000.The sale was scheduled to close on June 1.Under the terms of the contract, Justin paid $10 000 to Halle on May 1.On May 15, however, Halle told Justin that she had changed her mind and that she intended to keep Blackacre for herself.She did so even though the market value of Blackacre had dropped to $150 000.Which of the following statements is TRUE?

Pavla is the victim of mortgage fraud in connection with a piece of land called Blackacre.Blackacre is located in a jurisdiction that uses a land titles system.Which of the following statements is TRUE?

Jacinta owns a piece of land called Blackacre.She created a mortgage over Blackacre in favour of Simon.She then created a second mortgage in favour of Paolo.Simon has foreclosed on the property.As a result, he was able to extinguish Jacinta's title because she did not repay her loan to him.However, Simon's foreclosure cannot extinguish Paolo's second mortgage interest in Blackacre because Paolo did not receive any benefit from Simon.

Identify and briefly explain four types of remedies that may be available if the mortgagor defaults on a mortgage.

Albert owns a piece of land called Blackacre.He has accepted Dawn's offer to buy it for $200 000.That agreement of purchase and sale is, however, conditional on Dawn's ability to sell Whiteacre, a property that she currently owns.Which of the following statements is most likely TRUE?

Which of the following statements provides the best definition for "the insurance principle," as that phrase was used in the text?

In the context of land registration systems, what is the insurance principle? Is this principle applicable under a registry system or under a land titles system?

Nuala recently acquired an interest in a piece of land called Blackacre.A chain of title

As a matter of risk management, commercial lenders (such as banks) are normally willing to accept a mortgage for 100 percent of a property's current market value.That practice is based on the effects of inflation and on the fact that property values always increase no matter what happens in the economy.

Randall initially owned a piece of land called Blackacre that was worth $400 000.He borrowed $200 000 from Keir and created a mortgage over Blackacre in favour of Keir.Randall then borrowed $100 000 from Ian and created a mortgage over Blackacre in favour of Ian.Randall has not repaid any part of either debt.Because of a recession, the value of Blackacre has dropped to $90 000.Which of the following statements is TRUE?