Mike signed a contract to buy a house from Stephen. When Mike showed-up at the closing, Stephen was prepared to transfer title of the house by way of a quitclaim deed. After briefly consulting with his lawyer, Mike threatened to walk out of the closing unless Stephen agreed to transfer title of the house using a different type of deed. Mike indicated that he would only proceed with the closing if Stephen transferred title using a general warranty deed, but he would also accept a special warranty deed if Stephen agreed to lower the purchase price of the house by $50,000.

1. Why was it smart for Mike to object to the use of a quitclaim deed to transfer title? (3 points)

2. Why does it make sense for Mike to demand that the purchase price of the house be lowered if a special warranty deed is used? (3 points)

3. Assume that Stephen transferred title of the house to Mike by using a general warranty deed. If it is discovered that the house is burdened by a 200-year-old easement that Stephen did not know about, what covenant (if any) did Stephen violate? (3 points)

4. Would your answer to part (c) be different if a special warranty deed were used (instead of a general warranty deed) to transfer title of the house? Briefly explain your answer. (3 points)

6

From what part of the United States Constitution does the Fair Housing Act of 1968 derive its constitutional authority? Note: be specific! (3 points)