DE Bar Property Law 4

Question 1

A seller contracts to convey "marketable title." A title search reveals the property violates a zoning ordinance due to an existing structure built too close to the lot line. Is title marketable?

Accepted Answer

No, because an existing zoning violation renders title unmarketable

Answer

Yes, because zoning laws never affect marketability

Answer

Yes, because the violation predates the contract

Answer

No, because any zoning ordinance's mere existence defeats marketability

Question 2

A property owner grants an easement to a utility company "and its successors" to run lines across the land. The owner later sells the parcel. Is the new owner bound by the easement?

Accepted Answer

Yes, an easement in gross for utilities is enforceable against successors with notice

Answer

No, easements in gross terminate when the servient land is sold

Answer

No, because the utility must renegotiate with each new owner

Answer

Yes, but only if the new owner expressly assumed it in the deed

Question 3

A father hands his son a signed deed saying, "This is yours when I die," and keeps the deed in his own safe until death. Is the deed effective to pass title?

Accepted Answer

No, because there was no effective delivery during the father's life

Answer

Yes, because the deed was signed and the intent was clear

Answer

Yes, because family conveyances are presumed delivered

Answer

No, because deeds to family members require consideration

Question 4

A commercial tenant installs bolted-down display shelving for its business. At lease end, the tenant wants to remove the shelving. What is the general rule for such trade fixtures?

Accepted Answer

The tenant may remove them before the lease ends, repairing any damage

Answer

They become the landlord's property the moment they are attached

Answer

They may never be removed once bolted to the structure

Answer

Removal requires the landlord's written consent in all cases

Question 5

A grantor delivers a deed to an escrow agent with instructions to give it to the buyer upon full payment. The grantor dies before final payment, and the buyer then pays in full. What is the result?

Accepted Answer

Title passes; delivery relates back to the deposit in escrow

Answer

The deed fails because the grantor died before delivery to the buyer

Answer

The buyer must sue the estate for a new deed

Answer

The escrow agent takes title as trustee

Question 6

A cotenant in sole possession of jointly owned land pays all property taxes and makes necessary repairs. Absent ouster, what may that cotenant recover from the others?

Accepted Answer

Contribution for taxes and necessary repairs, offset by the value of sole occupancy in some courts

Answer

Nothing, because possession is its own compensation as a matter of law everywhere

Answer

Full reimbursement plus rent for managing the property

Answer

Only the cost of improvements, not taxes

Question 7

An owner borrows from Bank A, which records its mortgage, then borrows from Bank B, which also records. Bank A forecloses and gives proper notice to all parties. What happens to Bank B's junior mortgage?

Accepted Answer

It is extinguished as to the land, leaving Bank B to the surplus proceeds or a personal claim

Answer

It survives and continues to encumber the land in the buyer's hands

Answer

It automatically becomes a first mortgage on the property

Answer

It converts into an ownership share of the foreclosure sale buyer's title