Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Aaron owns a farm. Aaron has given First Bank and Trust a mortgage on the farm. Aaron transfers ownership of the farm to Bob and

Aaron owns a farm. Aaron has given First Bank and Trust a mortgage on the farm. Aaron transfers ownership of the farm to Bob and gives Bob a general warranty deed. The general warranty deed to Bob warrants that there are no encumbrances on the farm and does not mention the mortgage to First Bank and Trust. Bob owns the farm only a short time and sells the farm by limited warranty deed to Caren. Caren decides that farm life is not for her and sells the farm by general warranty deed to David. The general warranty deed does not mention the mortgage to First Bank and Trust. One week after David purchased the farm, First Bank and Trust notifies David of the mortgage. Consider this question: "Is there a breach of any deed warranty or covenant and, if so, which deed(s) (identify the grantor and grantee) and which covenant(s)?" Now answer the questions following with a "yes" or "no" and then provide your reasoning.

1. At this stage, does David have a viable claim against Caren? Explain. (5 points)

2. Does David have a viable claim against Bob? Explain. (5 points)

3. Does David have a viable claim against Aaron? Explain. (5 points)

4. Other than anyone you named previously, does anyone else have a viable claim against someone in this hypothetical? Explain. (5 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

1 Yes David has a viable claim against Caren Caren provided a general warranty deed to David which w... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Document Format ( 2 attachments)

PDF file Icon
6641c3b415e7c_989150.pdf

180 KBs PDF File

Word file Icon
6641c3b415e7c_989150.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Law questions

Question

Explain the benefits of visualization. Critical T hinking

Answered: 1 week ago

Question

Bonus shares can be issued out of revenue reserves. True/False?

Answered: 1 week ago