Mortgages and foreclosure — MCQs

Using only the supplied client file and legal resources, prepare an objective memorandum assessing whether Seller can presently deliver marketable title, whether Buyer may refuse to close on the scheduled date, and whether the dispute is likely curable within the contract period. Address the recorded easement, the unreleased mortgage, both parties' strongest arguments, and the factual or documentary steps counsel should take before advising Seller to demand performance.

A homeowner granted a mortgage on her home to First Bank, which immediately recorded it. One year later, the homeowner granted a second mortgage on the same property to Credit Union, which also immediately recorded. After the homeowner stopped making payments on the second mortgage but remained current on the first, Credit Union initiated a judicial foreclosure. Credit Union joined the homeowner and First Bank as defendants and gave both proper notice. First Bank does not seek foreclosure of its own mortgage. A prospective purchaser at the foreclosure sale asks whether Credit Union's foreclosure will eliminate First Bank's mortgage. Which of the following is the most appropriate advice?

A landowner owned adjoining northern and southern parcels. For 15 years, the landowner regularly used a paved road across the southern parcel to reach a public highway from a warehouse on the northern parcel. The road and its connection to the warehouse were plainly visible. The landowner sold the northern parcel to a buyer, but the deed did not mention the road. The northern parcel also borders a narrow public lane, but large delivery trucks cannot safely use that lane without substantial reconstruction. After the sale, the landowner blocked the paved road. The buyer seeks advice about continued use of the road. Which of the following is the buyer's strongest argument?

A parent conveyed a house “to my daughter and my friend as joint tenants with right of survivorship.” The daughter and friend took possession together. Two years later, without informing the daughter, the friend executed and delivered a valid deed conveying the friend's entire interest to a buyer. The buyer did not record the deed but paid value and immediately moved into the house. The friend died one month later. No recording statute affects the dispute, and the daughter does not challenge the validity or delivery of the deed. The daughter asks whether the friend's death caused her to become the sole owner. Which of the following best states the parties' ownership interests?

A recorded deed granted the owner of a landlocked residential parcel "a permanent easement over the existing gravel lane for pedestrian and passenger-vehicle ingress and egress to the public road." The lane crosses a neighboring parcel. The easement holder later connected the residence to a public water system by a different route. She now proposes excavating the full length of the gravel lane to install a sewer line beneath it. The installation would temporarily close the lane and require future access for maintenance. The neighbor objects but concedes that the completed line would not interfere with ordinary driving on the lane. Which of the following is the neighbor's strongest argument against the proposed installation?