Property Law Flashcards

Georgia's recording act is a race-notice statute. Under this system, a subsequent purchaser prevails over a prior unrecorded deed only if the subsequent purchaser:

Answer: Records first AND takes without notice of the prior conveyance

Under a race-notice statute, the subsequent purchaser must both record first and lack notice (actual, constructive, or inquiry) of the prior conveyance.

A purchase money mortgage (PMM) given to the seller to finance the purchase of real property generally takes priority over:

Answer: Judgment liens that attached before the conveyance

A purchase money mortgage enjoys superpriority over judgment liens that attached to the property simultaneously with the buyer acquiring title.

Which type of deed conveys the grantor's interest — whatever it may be — without any warranties of title?

Answer: Quitclaim deed

A quitclaim deed transfers only whatever interest the grantor actually holds and contains no covenants guaranteeing the quality of title.

The covenant of seisin in a general warranty deed warrants that the grantor:

Answer: Actually owns the estate being conveyed

The covenant of seisin promises that the grantor owns and has the right to convey the specific estate described in the deed.

After a lender forecloses on a mortgage, the borrower's right to reclaim the property by paying the full debt before the foreclosure sale is complete is called the:

Answer: Equity of redemption

The equity of redemption is the borrower's common law right to redeem the property before the foreclosure sale by paying the entire debt.

In Georgia, a mortgage is classified as a(n) ____ theory state, meaning the mortgagor retains legal title while the mortgagee holds a security interest only.

Answer: Lien theory

Georgia follows lien theory: the borrower retains legal title and the mortgage is merely a lien securing the debt.

A deed must be delivered and accepted to pass title. Which of the following best illustrates delivery?

Answer: The grantor hands the deed to the grantee with intent to pass title immediately

Delivery requires both physical transfer (or constructive equivalent) and the grantor's present intent to divest herself of title.