Mortgage theories and instruments — 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?