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MMLU / A landowner, being owner in fee simple of a farm conveyed the property by…

Problem

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question

A landowner, being owner in fee simple of a farm conveyed the property by warranty deed to an investor. The investor gave a farmer a mortgage on the farm to secure a loan from the farmer to the investor in the amount of $50,000. The mortgage was recorded immediately. Two years later, the investor conveyed the farm to his friend by quitclaim deed. According to the deed instrument, the friend "assumed the mortgage. " The investor then defaulted on the mortgage, and the farmer brought an in personam action against the friend to recover the amount of the mortgage due. The farmer will most likely

choices

  1. prevail, because the friend acquired title to the farm by quitclaim deed.
  2. prevail, because the farmer was a third-party beneficiary under the conveyance between the investor and the friend.
  3. not prevail, because the conveyance between the investor and the friend did not effectuate a delegation of duties.
  4. not prevail, unless the land was subject to the mortgage.

subject

professional_law

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