Real Property - Multistate Bar Exam
2025-Graded A
Abatement - ANS-Estate assets insufficient to pay claims/satisfy bequests, but abate
gifts
1) property passing by intestacy
2) residual estate
3) general legacies
4) specific devises and bequests
Actual notice - ANS-Prior to party acquiring interest, had personal knowledge of a prior
conveyance.
Bona fide purchaser aka good faith purchaser - ANS-A purchaser (not a donee, heir
devisee)
Who gives value [exception: shelter rule - took freely from a BFP]
Who takes without notice of prior conveyance [actual, constructive, inquiry]
Chain of title established - rule - ANS-In most jurisdictions, chain of title is established
by a title search of the grantor-grantee index.
Closing documents - Closing disclosure - ANS-For residential mortgages. Lenders must
provide to mortgagers at least 3 biz days before closing.
Includes:
1) principal, interest, payments
2) closing costs
3) potential change, e.g. interest hikes or balloon payments,
4) cash required to close.
***If fail to provide, mortgager may be able to cancel the mortgage or recover
damages***
Closing documents - environmental report - ANS-Any property type. Owner must
generally pay to cure any environmental damage to the property, even if the damage
occurred before the owner owned the property.
As a result, buyers of commercial real estate often ask sellers to guarantee that the
property complies with environmental laws. Sellers want to avoid making these
guarantees, and the parties must ultimately negotiate an environmental report, to be
, signed by both parties at closing, that identifies which environmental guarantees the
seller makes.
Closing documents - Notification of defects - ANS-A seller of residential property must
provide a form to the buyer at closing, notifying of any physical defects of which the
seller is aware.
A seller who fails to disclose a known defect that must be disclosed in this form will be
liable for the defect after closing.
Common law recording system - ANS-First in time, first in right (receipt of interest)
Conditions on deeds - ANS-No extrinsic/parol evidence to add conditions to an
unconditional deed given to a grantee - condition is void & delivery is complete.
If written condition in deed, valid when delivered. If condition is grantor's death, creates
executory interest in the grantee.
Conflict of Law: Inheritance of Decedents' Estate - ANS-Real property: Apply law of
state where property is located
Personal property: Apply law of testator's domicile at time of their death
Conveyance by gift - valid inter vivos gift - ANS-Deed is validly conveyed by inter vivos
gift if 1) donative intent, 2) delivery, 3) acceptance
Conveyance by will - validity considers - ANS-Ademption = specific bequests that can
only be satisfied by delivery of item (land) not money.
1) Ademption: Gift fails if devised but testator doesn't own at death; fails as to pieces of
property that were sold/given away (adeemed) before death
2) Land under executory K: ademption does not apply to proceeds of K for sale of land
executory at death (devisee gets proceeds instead of land); takes precedence over
equitable conversion
3) Property damaged or destroyed before death but insurance paid after death/property
condemned but award paid after death: ademption does not apply, beneficiary of
specific bequest takes proceeds
Covenants for title - general warranty deed - ANS-Warrants against all defects in title,
including those attributable to grantor's predecessors. Includes all of the following
covenants:
1) Seisin: grantor owns the property
2) Right to convey
3) No encumbrances, including those obvious and known
--
1) quiet enjoyment: grantee will not be disturbed in possession by 3rd parties lawful
superior claim of title
2025-Graded A
Abatement - ANS-Estate assets insufficient to pay claims/satisfy bequests, but abate
gifts
1) property passing by intestacy
2) residual estate
3) general legacies
4) specific devises and bequests
Actual notice - ANS-Prior to party acquiring interest, had personal knowledge of a prior
conveyance.
Bona fide purchaser aka good faith purchaser - ANS-A purchaser (not a donee, heir
devisee)
Who gives value [exception: shelter rule - took freely from a BFP]
Who takes without notice of prior conveyance [actual, constructive, inquiry]
Chain of title established - rule - ANS-In most jurisdictions, chain of title is established
by a title search of the grantor-grantee index.
Closing documents - Closing disclosure - ANS-For residential mortgages. Lenders must
provide to mortgagers at least 3 biz days before closing.
Includes:
1) principal, interest, payments
2) closing costs
3) potential change, e.g. interest hikes or balloon payments,
4) cash required to close.
***If fail to provide, mortgager may be able to cancel the mortgage or recover
damages***
Closing documents - environmental report - ANS-Any property type. Owner must
generally pay to cure any environmental damage to the property, even if the damage
occurred before the owner owned the property.
As a result, buyers of commercial real estate often ask sellers to guarantee that the
property complies with environmental laws. Sellers want to avoid making these
guarantees, and the parties must ultimately negotiate an environmental report, to be
, signed by both parties at closing, that identifies which environmental guarantees the
seller makes.
Closing documents - Notification of defects - ANS-A seller of residential property must
provide a form to the buyer at closing, notifying of any physical defects of which the
seller is aware.
A seller who fails to disclose a known defect that must be disclosed in this form will be
liable for the defect after closing.
Common law recording system - ANS-First in time, first in right (receipt of interest)
Conditions on deeds - ANS-No extrinsic/parol evidence to add conditions to an
unconditional deed given to a grantee - condition is void & delivery is complete.
If written condition in deed, valid when delivered. If condition is grantor's death, creates
executory interest in the grantee.
Conflict of Law: Inheritance of Decedents' Estate - ANS-Real property: Apply law of
state where property is located
Personal property: Apply law of testator's domicile at time of their death
Conveyance by gift - valid inter vivos gift - ANS-Deed is validly conveyed by inter vivos
gift if 1) donative intent, 2) delivery, 3) acceptance
Conveyance by will - validity considers - ANS-Ademption = specific bequests that can
only be satisfied by delivery of item (land) not money.
1) Ademption: Gift fails if devised but testator doesn't own at death; fails as to pieces of
property that were sold/given away (adeemed) before death
2) Land under executory K: ademption does not apply to proceeds of K for sale of land
executory at death (devisee gets proceeds instead of land); takes precedence over
equitable conversion
3) Property damaged or destroyed before death but insurance paid after death/property
condemned but award paid after death: ademption does not apply, beneficiary of
specific bequest takes proceeds
Covenants for title - general warranty deed - ANS-Warrants against all defects in title,
including those attributable to grantor's predecessors. Includes all of the following
covenants:
1) Seisin: grantor owns the property
2) Right to convey
3) No encumbrances, including those obvious and known
--
1) quiet enjoyment: grantee will not be disturbed in possession by 3rd parties lawful
superior claim of title
