Exam 16: Real Property: Sales and Mortgages

Robert borrowed money from Yanami.As security for that loan,he gave a mortgage over his house.The parties' agreement does not contain a prepayment privilege.Consequently,if Robert repays the loan more quickly than agreed,Yanami may be entitled to a bonus.

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.Which of the following statements is TRUE?

Vigo has just decided on a new house to buy and is getting ready to sign the mortgage contract.Which of the following should Vigo not expect to see?

Belinda owned a piece of land called Blackacre.On Monday,she used it to create a mortgage in favour of Johnny.On Tuesday,she used it to create a subsequent mortgage in favour of Humphrey.Humphrey registered his mortgage on Thursday.Johnny registered his mortgage on Friday.Explain a situation in which Johnny's mortgage has priority over Humphrey's.Explain a situation in which Humphrey's mortgage has priority over Johnny's.

A piece of land called Blackacre is subject to a mortgage in favour of Maia.The mortgage is in default.It may be possible for Maia to enforce her security by selling Blackacre without complying with the procedures for a judicial sale.

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?

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?

Salome owned a piece of land called Blackacre.She committed the tort of nuisance against Prem by allowing noxious fumes to waft from Blackacre and onto his property.The court held her liable for $100 000 in compensatory damages.Recently,Salome sold Blackacre to Shandon for $250 000.Which of the following statements is most likely TRUE?

Ngari borrowed $250 000 from Phoebe.As security for the repayment of that loan,he created a mortgage over a piece of land called Blackacre.Ngari has repaid part of the loan to Phoebe,but he still owes $150 000.He is unable to repay the outstanding amount.Which of the following statements is TRUE?

Ramla borrowed $100 000 from Wilhelm.As security for repayment of that loan,she created a mortgage over a piece of land called Blackacre.Which of the following statements is TRUE?

Horatio owns a piece of land called Blackacre.He contractually agreed to sell it to Bharati for $200 000.Although the sale was not scheduled to close for four weeks,Horatio required Bharati to pay $10 000 immediately.Shortly before the sale was scheduled to close,Horatio told Bharati that he had changed his mind and that he was not willing to complete the sale.If he refuses to refund her $10 000,she would be entitled to use a vendor's lien.

Solomon recently purchased a piece of land for $200 000.A short time later,however,the land was seized by the government and sold.That is true even though Solomon never breached any obligation and always paid his debts on time.Which of the following statements may best explain this set of events?

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

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?

Herschel borrowed $500 000 from Minah.As security for the repayment of that loan,a mortgage was created over a piece of land called Blackacre.Which of the following statements is TRUE?

Briefly explain the need for some form of land registration system.

In order to purchase an interest in piece of land called Blackacre,Rhiannon borrowed $100 000 from Nick.As security for the repayment of that loan,she entered into a mortgage over a piece of property.Which of the following statements is TRUE?

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?

Monique owns a piece of land called Blackacre.Blackacre is worth $500 000.Monique created a mortgage in Bjorn's favour to secure repayment of a $200 000 loan that she received from him.A short time later,she created a subsequent mortgage in Mike's favour to secure repayment of a $250 000 loan that she received from him.Does the existence of two mortgages expose Monique,Bjorn,or Mike to a substantial risk of financial loss? Explain your answer.

A mortgage exists between Jonah and Marina with respect to a piece of property called Blackacre.The mortgage agreement contains a prepayment privilege.In normal circumstances,Jonah would want the inclusion of that clause if he is the mortgagor,but not if he is the mortgagee.