Exam 16: Real Property: Sales and Mortgages

Hristo created a mortgage,in favour of Tippi,over a piece of land called Blackacre.Which of the following statements is TRUE?

Kate believed that she owned a piece of land called Blackacre.She purportedly sold it to Ben.The land titles office issued a new certificate of title that named Ben as the exclusive owner of Blackacre.In fact,however,Kate was not really entitled to sell Blackacre.Although none of the parties realized it at the time of the sale to Ben,Blackacre actually belonged to Sam,and not to Kate.The official at the land titles office carelessly failed to realize that fact when the new certificate of title was issued.Which of the following statements is TRUE?

A piece of land called Blackacre is subject to a mortgage in favour of Henri.The mortgage was used to secure a debt that Sophie owed to him.Sophie defaulted upon payment of that debt.Henri can extinguish her equity of redemption by exercising his right to take possession of Blackacre.

Zelda owned a piece of land called Blackacre.She borrowed $200 000 from the Bank of Regina.As security for the repayment of that loan,she created a mortgage over Blackacre.During the next 12 months,Zelda made several payments on the loan.At the end of that year,her debt to the Bank of Regina was reduced to $175 000.She then agreed to sell Blackacre to Fabio for $250 000.Fabio's lawyer has told him that there are two options for paying the purchase price.Under the first,Fabio would fulfill Zelda's obligation to repay the loan to the Bank of Regina.Under the second,Fabio would pay the purchase price by borrowing money from the Bank of Moncton,and by creating a new mortgage in favour of that bank.Explain in greater detail how each of those options would work.How would Fabio decide which option to use?

Hiram owns a piece of land that he wants to sell to Regina.She wants to buy it for the purpose of building a shopping mall.It is not yet clear,however,whether the municipal government will give planning approval for the proposed mall.Hiram and Regina consequently will probably immediately create a contract that is subject to a condition subsequent.

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.

A piece of land called Blackacre was subject to a mortgage in favour of Alona.After the mortgage went into default,she asked the court for the remedy of foreclosure.She was granted an order nisi.Blackacre therefore now belongs to her and cannot be taken away.

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?

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

Which of the following statements provides the best definition for "the mirror principle"?

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?

On March 1,Eleanor entered into a contract to buy a piece of land called Blackacre from Hershey.The purchase price was $200 000.Eleanor paid $20 000 immediately and promised to pay the remainder when the sale closed on June 1.On June 1,however,Hershey refused to complete the sale.He also refused to refund Eleanor's $20 000.He honestly explained that while he has Blackacre,he simply does not have any money so he needs the deposit money to live on.What remedy should Eleanor use? Explain your answer.

Pascale bought a piece of land called Blackacre from Jeff.The purchase price was $500 000.The purchase was made entirely on credit.Although Pascale has taken possession of Blackacre,she has not paid any part of the purchase price,despite being required to do so by the sales agreement.Jeff wants to have Blackacre seized and sold in order to provide a fund with which the purchase price can be paid.Unfortunately for him,he did not receive a mortgage over Blackacre.Is there any other basis upon which he can take action against Blackacre in order to receive payment? Explain your answer.

Zoe and Lucius are parties to a contract that allows Zoe to take the benefit of a "prepayment privilege" (as that term was used in the text).Which of the following statements is most likely TRUE?

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.

Letitia contractually agreed to sell a piece of land called Blackacre to Rocco for $250 000.Closing was scheduled to occur on June 1.On May 15,however,Letitia told Rocco that she did not intend to transfer title to him.Which of the following statements is TRUE?

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

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?

Alpha Inc is interested in purchasing a particular piece of land.The company's president is,however,worried that the land may be worth less than the current owner claims.The company should therefore retain the services of

Aidan and Nadia are parties to a contract that allows Nadia to enforce an "acceleration clause" (as that term was used in the text).Which of the following statements is most likely TRUE?