User:Pgpkyl/Sample page

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Several years ago, Parent, the record owner of a farm in fee simple absolute, conveyed the farm as a gift “jointly in fee to my beloved daughters, Jessie and Karen, equally, to share and share alike.” Parent delivered the deed to Jessie and Karen. The deed was never recorded.

Two years ago, Jessie borrowed $60,000 from Credit Union, securing the loan by granting Credit Union a mortgage on her interest in the farm. Credit Union properly and promptly recorded the mortgage.

Six months ago, Jessie validly contracted to sell her one-half interest in the farm for $90,000 to Buyer, who was very anxious to acquire Jessie’s interest. Buyer paid Jessie $40,000 as earnest money and agreed in the contract to accept a deed with no warranties of any kind and to accept the title regardless of whether title was marketable. Buyer had no actual notice of the mortgage Jessie had granted to Credit Union.

Two months ago, before closing the sale with Buyer, Jessie died, survived by Karen. At the time of Jessie’s death, the loan secured by Credit Union’s mortgage was still outstanding. Jessie’s will provided: “I give all of my real property to Devisee and all of my personal property to Legatee.” Both Devisee and Legatee survived Jessie.

Last month, the executor of Jessie’s estate executed a deed purporting to convey a one-half interest in the farm to Buyer in exchange for the balance of the purchase price.

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