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Kate Believed That She Owned a Piece of Land Called

Question 64

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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) Sam is still the owner of Blackacre because the mirror principle states that the certificate of title must reflect the actual facts.
B) Sam is still the owner of Blackacre because the curtain principle required Ben to "lift the curtain" and determine the true owner of Blackacre before entering into the sale.
C) Sam is entitled to compensation from the assurance fund.
D) Ben is entitled to compensation from the assurance fund.
E) Ben is the owner of Blackacre because Sam could have avoided any difficulties by tracing a good chain of title.

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