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MMLU / A rancher, being owner in fee simpleconveyed the property by warranty deed to a…

Problem

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question

A rancher, being owner in fee simpleconveyed the property by warranty deed to a woman. The woman gave her niece a mortgage on the ranch to secure a loan from the niece to the woman in the amount of $500,000. The mortgage was recorded immediately. Two years later, the woman conveyed the ranch to a farmer by quitclaim deed. The woman then defaulted on the mortgage, and the niece brought an in personam action against the farmer to recover the amount of the mortgage due. Assume that the woman's quitclaim deed to the farmer made no reference to the mortgage. The woman then defaulted on the mortgage, and the niece brought an in personam action against the farmer to recover the amount of the mortgage due. The mortgagee will probably

choices

  1. succeed, because an implied delegation of duties resulted from the woman's conveyance to the farmer.
  2. succeed, because the niece was a third-party beneficiary under the conveyance between the woman and the farmer.
  3. not succeed, because the farmer did not promise to pay the mortgage debt.
  4. not succeed, unless the farmer had constructive notice of the existence of the mortgage.

subject

professional_law

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