Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Joe & Mary own Blackacre Farm. They agree to sell it to Timothy, the farm worker, for $785,000.00 Dollars. Timothy, because he trusts Joe &

Joe & Mary own Blackacre Farm. They agree to sell it to Timothy, the farm worker, for $785,000.00 Dollars. Timothy, because he trusts Joe & Mary so much, doesn't know that they owe $1,550,000.00 Dollars in unpaid taxes and a mortgage to a bank.

QUESTION: If Timothy accepts the Deed and the transfer is completed, who will be responsible for paying the $1,550,000.00 in unpaid taxes and outstanding mortgage? Do you agree that debts, like mortgages, (and unpaid-taxes) should travel with the land to a new buyer/owner? If not, why? Explain.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

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

Dynamic Business Law

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

6th Edition

9781260733976

Students also viewed these Law questions