RECORDING
What is a Race Jurisdiction?
First to record wins.
What are the 2 documents involved in a mortgage transaction and what to they mean?
Note & Mortgage:
Note= personal liability to bank
Mortgage = We can sell your house if you don't pay
What is a Variance?
Variance allows an owner to use the land for something other than what it was originally zoned for.
Usually achieved by a request to the zoning board.
What is a wild deed? What is its effect?
Wild deed is one that isn't within the chain of title, it doesnt properly follow the preceding deed.
WILD DEED= INCAPABLE OF GIVING RECORD NOTICE.
What is a Notice Jurisdiction?
Last BFP to take wins.
What is the effect of an assumption of mortgage?
Grantee becomes primarily liable to lender, original mortgagor becomes secondarily liable as a surety.
BANK CAN SUE BOTH.
What is cumulative zoning?
Creates a hierarchy of uses for land. If you want to build in a lower use zone you can build that or anything with a high use. But cannot build a low use in a higher use zone.
You can build a house in a factory district, but can't build a factory in a residential district.
What is the Shelter Rule?
A subsequent buyer of a BFP takes shelter in the BFP's protections. I.e. even if the later buyer knew of an unrecorded conveyance, they are protected under the BPF's lack of notice.
What is a Race Notice Jurisdiction
Later purchaser wins if they are a BFP and record before the prior purchaser.
Difference in assuming a mortgage vs taking subject to a mortgage?
Assuming= You take on personal liability
Subject to= You DO NOT take personal liability, banks only recourse would be foreclosure.
What is Noncumulative zoning?
Land may be used only for purposes permitted by its zone.
What is Redemption in Equity?
Debtor being foreclosed upon has up until the foreclosure sale to redeem themselves and pay the mortgage current.
AFTER SALE THIS RIGHT IS CUT OFF.
What is a BFP?
Bona Fide Purchaser:
1) Must be a Purchaser
2) Must pay valuable consideration
3) Must take WITHOUT NOTICE of any prior conveyances.
Junior Interests (those after/below mortgage in line) are paid off in order with any remaining foreclosure funds.
Senior interests (those in existence before the mortgage) remain with the property and are not paid off with any excess foreclosure funds.
Can you change a non-conforming use?
nonconforming uses MAY NOT be extended or intensified in ways that would constitute a substantial change.
What are the 3 types of Notice?
Actual: you know from first hand knowledge of prior conveyance.
Inquiry: Simple investigation would show that there was a prior conveyance.
Record: Chain of title is recorded.
What is a subordination agreement?
A senior creditor may agree to have their priority subordinated to a junior creditor by private agreement.
What is zoning based off of? (General Intent)
Health, safety, morals, and welfare of citizens.