Real Property 2 Quiz5

What is equitable conversion based on?

• Equity principles

• Legal principles

• Financial principles

• Social principles

Who holds legal title after a contract is signed but before the deed is delivered?

• Seller

• Buyer

• Both parties

• Real estate agent

What does equitable conversion under an executory contract of sale immediately pass to the purchaser in Alabama?

• Legal title

• Equitable estate

• Possession rights

• Mortgage interest

The overwhelming majority of jurisdictions apply the doctrine of equitable

conversion, and find that the buyer must buy the property and is entitled to

the condemnation award.

• True

• False

During the “gap” period, the seller’s or buyer’s need for the property may

change or the market value of the property may change. Usually, neither a

change in the market value nor a change in the buyer’s or seller’s needs will

excuse them from performing the sales contract.

• Neither a change in market value nor a change in the buyer’s or seller’s needs will excuse them from performing the sales contract.
• A change in the buyer's needs will always excuse them from performing the sales contract.
• A change in market value will always excuse them from performing the sales contract.
• A change in the seller's needs will always excuse them from performing the sales contract.

One generally recognized exception to the doctrine of equitable conversion is

that where the seller’s title is defective at the time of loss, the _____ will bear

the loss.

What is true if a seller or buyer dies before closing. Choose all that apply.

• If the seller dies, the “bare” legal title passes to the takers of his real property,

• Under CL, the devisees of the personal property have to pay for the real property even if they don’t get

  the personal property.

• Under the Modern Trend, by statute, eliminated the doctrine of exoneration so the devisees

  receiving the real property have to pay for the real property which is the subject of the contract.

​ (a)   which means you pay off the mortgage before they foreclose

​ (b)   (in AL) means you can pay off the mortgage after they foreclose

If the property is redeemable (can be recovered) the owner has for AL:

​ (c)   if the property is residential and

​ (d)   if it is commercial

• Equitable Redemption
• Statutory Redemption
• 6 months
• 1 year

Right of redemption is a legal process that allows a delinquent mortgage borrower to reclaim their home or other property subject to foreclosure if they are able to repay their obligations in time.

You can sell your right of redemption

• True

• False

• If the mortgage is sold the assignment is not recorded at the courthouse, it is recorded in ​ (a)  

• At one point because there were so many foreclosures the banks lost the ​ (b)   to the mortgages

• Under ​ (c)   if the bank does not have both the note and the mortgage they could not foreclose

• The ​ (d)   now is the note and the mortgage can be in different places and the bank can have a foreclosure

• MERS
• notes
• Common Law
• Modern View