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a.Minority Viewi.A mortgagee must exert every reasonable effort to obtain a fair and reasonable price under the circumstances, even to the extent, if necessary, of adjourning the sale or of establishing an upset price below which he will not accept any offerii.Fair price is determined on a case by case basis, but a shock the conscience test is applied.
Property I OutlinePage 24 iii.Bad faith requires an intentional disregard of a duty or a purpose to injure.iv.The proper assessment of damages is the difference between the fair price for the property and the price obtained at the foreclosure sale. 13.Transfer by the mortgagor – a mortgagor can transfer his interest inthe land by sale, mortgage. The transfer will not negate the mortgage. 14.Installment land sale contract – an arrangement whereby the purchaser takes possession and the seller contracts to convey title to the purchaser when the purchaser has paid the purchase price in regular installments over a fixed period of time.VII.Title Assurancea.All instruments affecting title can be recordedb.Purpose of Recording:i.Establishes a system of public recordation of land titlesii.Preserves in a secure place important documentsiii.Protects purchasers from value and lien creditors against unrecorded interests. c.Recording statutes only provide a means for giving constructive notice of ownership with respect to estates or interests disclosed in a recording instrument. d.Recording statutes may apply to mortgages, deeds or assignments.e.They are applicable when two claimants both have a basis for claiming that the record tf.itle holder of the property has conveyed or mortgaged or assigned the property to them. g.An unrecorded instrument is valid as between the parties to the agreement and those who do not qualify as bona fide purchasers for value and without notice. h.Recordation will not cure the defects in a conveying instruments void for lack of delivery, forgery or fraud. i.Recording statutes do not apply with respect to title acquired by adverse possession. j.Types of Recording Systemi.Tract indexii.Grantor-Grantee index (most common) – filed alphabetically and chronologically. iii.Title registration (least common)k.A subsequent bona fide purchaser is protected against prior unrecorded interests. l.Common Law Baseline rule – first in time, first in right. m.Recording doesn’t affect the validity of a deed titlen.Only when a 3rdparty brings a claim, the recording is importanto.In title searches, you should check for:i.Encumbrancesii.If there is a valid title (does the seller have title to convey)p.How to search titlei.Trace backward for the source or root of title (use grantee index)
Property I OutlinePage 25 ii.Then search forward from that source. (use grantor index)q.Mother Hubbard Clausesi.A Mother Hubbard Clause is a provision in a deed that attempted to sweepwithin it other parcels not specifically described.