Background picture of columns

02/09 Real Property Question

Several years ago, Parent, the record owner of a farm in fee simple absolute, conveyed the farm as a gift “jointly in fee to my beloved daughters, Jessie and Karen, equally, to share and share alike.” Parent delivered the deed to Jessie and Karen. The deed was never recorded.

Two years ago, Jessie borrowed $60,000 from Credit Union, securing the loan by granting Credit Union a mortgage on her interest in the farm. Credit Union properly and promptly recorded the mortgage.

Six months ago, Jessie validly contracted to sell her one-half interest in the farm for $90,000 to Buyer, who was very anxious to acquire Jessie’s interest. Buyer paid Jessie $40,000 as earnest money and agreed in the contract to accept a deed with no warranties of any kind and to accept the title regardless of whether title was marketable. Buyer had no actual notice of the mortgage Jessie had granted to Credit Union.

Two months ago, before closing the sale with Buyer, Jessie died, survived by Karen. At the time of Jessie’s death, the loan secured by Credit Union’s mortgage was still outstanding. Jessie’s will provided: “I give all of my real property to Devisee and all of my personal property to Legatee.” Both Devisee and Legatee survived Jessie.

Last month, the executor of Jessie’s estate executed a deed purporting to convey a one-half interest in the farm to Buyer in exchange for the balance of the purchase price.

The jurisdiction has a notice-type recording statute and a grantor-grantee index system.

 

1.             Did Parent convey the farm to Jessie and Karen as “tenants in common” or as “joint tenants with right of survivorship”? Explain.

2.             Assuming Jessie and Karen acquired a joint tenancy with right of survivorship in the farm, what are the rights, if any, of Karen, Credit Union, and Buyer in the farm? Explain.

3.             Assuming Jessie and Karen acquired a joint tenancy with right of survivorship in the farm, who is entitled to the balance of the purchase price Buyer paid the executor of Jessie’s estate? Explain.

 

MEE FAQs

Description of the MEE
Jurisdictions Using the MEE
Why Jurisdictions May Want to Implement the MEE

February 2009 MEE Questions

Agency and Partnership Question
Evidence Question
Decedents’ Estates Question
Real Property Question
Federal Civil Procedure and Conflict of Laws Question
Negotiable Instruments (Commercial Paper) Question
Torts Question
Family Law Question
Corporations Question

NCBE logo About NCBE | Site Map | Privacy Policy | Contact Us | ©2006 National Conference of Bar Examiners