342 MODULE 31 PROPERTY

cause Wilk did not assume the mortgage but bought prope~y. T{le omission of any of these terms will cause the
the agreement to fail for indefiniteness. The other terms of
building subject to the mortgage. payment due date, liability insurance requirements, and re-
sponsibility for repairs are optional, but not required. They
35. (b) A purchaser of real estate takes title subject to , will not cause the contract to fail for indefiniteness.
any-mortgage he was aware of or any mortgage that was
recorded before the purchase. Ford, therefore, takes title to 41. Cc) The lessee ofresidential property, although not
the warehouse subject to Young's mortgage, but free of the owner, generally has the right to possession of the prop-
Lang's mortgage. Therefore, answer (b) is correct and an-
swer (a) is incorrect. Answer Cc) is incorrect because there
is no such provision. Answer (d) is incorrect because the
recording statutes change the first in time concept to
encour-
age the recording of mortgages.

36. (a) To have an enforceable mortgage it must be in

writing and must include a description of the property and
debt to be incurred. Therefore, answer (a) is correct. An-
swer (b) is incorrect, because although debt is usually evi-
denced by a promissory note, this is not required to be. An-
swer Cc) is incorrect because the promise to pay is
adequate
consideration. Answer (d) is incorrect because the amount
of the debt and the interest rate are not required to be stated

in the mortgage.

37. Cc) A mortgagor has the right to redeem the mort-

gaged property after default and before a judicial sale by
payment of all principal and interest due on the mortgage
note. Thus, Frost may redeem the property only if all mort-
gages are paid in full prior to the judicial sale. Answer (a) is
incorrect because the right of redemption is a right that oc-
curs after the judicial sale. Most states allow a mortgagor a
period of time, usually one year after the foreclosure sale, to
reinstate the debt and mortgage by paying to the purchaser
at
the judicial sale the amount of the purchase price plus the
statutory interest rate. Answer (b) is incorrect because Frost
may redeem the property prior to the judicial sale by paying
all mortgages in full without regard to the probable sale
price of the property. Answer (d) is incorrect because Frost
would not have to pay penalty fees to the mortgagees.

38. (d) After foreclosure of the mortgage, the mortgagor

may redeem the property by payment of all principal and
interest due on the mortgage note. However, the right of
redemption will terminate at the time of the judicial foreclo-
sure sale unless the jurisdiction has enacted a statutory right

of redemption. Answers (a), (b), and Cc) are incorrect be-

cause they do not affect when the mortgagor's right of re-
demption 'terminates.

39. (b) Recording a mortgage protects the mortgagee

against subsequent mortgagees, purchasers, or other
takers.
Therefore, answers (a), Cc), and (d) are incorrect because
those answers involve parties with existing claims on the
property.

N. Lessor-Lessee

40. (b) A residential lease agreement must contain the

following essential elements: the parties involved, lease
payment amount, lease term, and a description of the
leased
 erty and the right to quiet enjoyment of the property. The
. right to quiet enjoyment means that neither the lessor
nor a
third party with a valid claim will evict the lessee unless the
lessee has breached the lease contract. The lessee also
has
the implied warranty of habitability which means that s/he
has the right to inhabit premises that are fit for human occu-
pation.
42. Cc) A lease is not a sale and does not involve a
transfer of title. A lessee may have possession and control
of the property but will not have ownership. When property
is abandoned, the owner relinquishes possession and title of

the property. Subsequent parties who acquire abandoned

property with the intent to own it acquire title.

43. (d) A tenancy at sufferance is created when a tenant

stays in possession of the leased property after the
expiration
of-the lease without the landlord's consent. A tenant at suf-
ferance is a trespasser and the landlord may evict the tenant

by instituting legal proceedings. Answer (a) is incorrect

because a tenancy at will is an agreement that is not for a
fixed period but is terminable at the will of the landlord or
tenant. In this situation, the tenant does not have the
consent
of the landlord to stay in possession of the property and a
tenancy at will is not created. Answer (b) is incorrect be-
cause a tenancy for years is a tenancy that has a fixed
begin-
ning and end at the time of creation of the tenancy. An-
swer Cc) is incorrect because a tenancy from period to
period
would only be created if the landlord allowed the tenant to
remain in possession of the property.