OK Bar Property Law 4

Question 1

O sells Blackacre to A, who does not record. O then sells to B, who pays value and knows nothing of A. B records. Under a notice recording statute, who prevails?

Accepted Answer

B, because he was a bona fide purchaser without notice

Answer

Under a notice statute, a subsequent bona fide purchaser without notice prevails over a prior unrecorded conveyance regardless of who records first.

Question 2

Under a race-notice statute, a subsequent purchaser prevails over a prior unrecorded deed only if the purchaser:

Accepted Answer

Takes without notice and records first

Answer

A race-notice statute protects a subsequent purchaser only when he both lacks notice at purchase and wins the race to record.

Question 3

A general warranty deed's covenant of quiet enjoyment is breached when:

Accepted Answer

The grantee is actually or constructively evicted by a superior title after taking possession

Answer

Quiet enjoyment is a future covenant breached only when the grantee is disturbed in possession by someone holding paramount title.

Question 4

Buyer and Seller sign a valid contract for the sale of land. Before closing, a fire destroys the house through no one's fault. Under the majority equitable conversion rule, who bears the loss?

Accepted Answer

The buyer, who holds equitable title

Answer

Under equitable conversion, the buyer is treated as the equitable owner from signing and bears the risk of loss before closing in the majority of states.

Question 5

A borrower defaults on a mortgage and the lender forecloses. A second mortgage recorded after the foreclosing first mortgage is:

Accepted Answer

Extinguished if the second mortgagee was joined in the foreclosure

Answer

Foreclosure of a senior mortgage wipes out properly joined junior interests, leaving juniors to claim only surplus sale proceeds.

(OK Bar) Oklahoma Bar Exam Practice Test

(OK Bar) Oklahoma Bar Exam Practice Test

OK Bar Property Law 4