1. Oliver owned a house located at 47 Oak Drive in Dayton. Last month, Oliver entered into a contract to sell the house to Betty. The contract states that the property is subject to written covenants and that the buyer waives any objection to these covenants. One of these covenants requires that all buildings be located at least 15 feet from the property boundaries on all sides. Before closing, Betty discovers that the house is only 12 feet from the property boundary. On these facts, could Betty refuse to close because the covenants render the title unmarketable?
2. A rents some commercial space to B in Hawaii. On the day that B goes to move in, C is occupying the space. B wants A to get C out and B tells A that it's A's problem. If Hawaii follows the majority rule, who is responsible and why?
3. Sally entered into a written contract to sell a parcel of land to Bob for $200,000.00.  At the time Sally and Bob executed the contract, Bob put up a $20,000.00 earnest money deposit.  After the execution of the contract, but before closing, a garage located on the property was struck by lightning and burned to the ground.  The garage had a fair market value of $35,000.00 and was a complete loss.  After the fire, Bob demanded that Sally return the $35,000.00 deposit because Bob was no longer interested in purchasing the property.  Sally refused and told Bob that he expected Bob to tender the balance of the purchase price on the scheduled closing date.  Bob did not tender the balance of the purchase price. Bob filed suit, demanding that Sally return the $35,000.00 deposit.  Sally countersued, demanding specific performances or, in the alternative, monetary damages. Under the common law, how should the court rule?
4. Oliver purchased a piece of property in 1999 for $100,000. In order to purchase the land, he took out a mortgage on the land for $80,000 from Bank 1.  In 2005 Oliver took out a second mortgage from Bank 2 on the land to build a house for $50,000.  In 2012, Oliver took out a third mortgage from Bank 3 for $20,000 to make an addition on the house. Bank 1 then joins Bank 2 and Bank 3 in a foreclosure proceeding.  At the foreclosure sale, the property sells for $110,000 (fair market value at the time of sale).  How should the proceeds be distributed?

Answer rating: 100% (QA)

Bettys Refusal to Close on the House Purchase In this scenario Betty discovered that the house she was purchasing from Oliver is only 12 feet from the property boundary which violates one of the coven... View the full answer