32.       O, the owner of Blackacre in fee simple, conveys Blackacre in a valid deed using the following language: “I grant Blackacre to A for life with the remainder going to my heirs.” One month later, in a valid deed, A conveys her interest in Blackacre “to B so long as B manages an auto repair business.” Two years later A dies. B is still running an auto repair business.  Assume in the relevant jurisdiction that the doctrine of destructibility of contingent remainders is abolished, but other special rules such as common law Rule Against Perpetuities, Doctrine of Worthier Title, Rule in Shelley’s Case and merger are not abolished and apply where applicable.What interest does B have in Blackacre after A’s death?

39.       John is the owner of a fee simple in Blackacre and makes a valid will including the following language: “I devise Blackacre to Andrew for life, then to Betty if Andrew dies without issue from his wife Betty, but if Andrew dies with issue from his wife Betty, then to Cindy.” Andrew and Betty do not have any children when John passes away. Assume in the relevant jurisdiction that the common law Rule Against Perpetuities applies to conveyances and wills and that the doctrine of destructibility of contingent remainders is abolished.Which of the following statements best describes Betty’s interest in the property upon John’s death, with Andrew being alive? 

21.      David owned Blackacre in fee simple and executed a valid grant deed, stating: “I give Blackacre to my wife, Amy, for her life, then to my daughter, Betty, for her life, then to my grandchildren who reach 21 within 21 years after the death of Betty.” At the time of the deed, David was married to Amy and they had only one child, Betty, age 3. Assume in the relevant jurisdiction that the common law Rule Against Perpetuities applies to conveyances and wills and that the doctrine of destructibility of contingent remainders is abolished. After the deed, the gift to David’s grandchildren is best described as:

6. Howard purchased from Stan a lot with a small house. Before the time of purchase, Howard got a mortgage to borrow $350,000.00 from Finance Company and Finance Company validly recorded the mortgage. One year before Howard purchased the lot, Bob had placed a lien on the property in the amount of $10,000.00 when Stan owned the lot and validly recorded the lien in the chain of title. Before purchasing the lot, Howard had agreed with Stan to take the lot subject to Bob’s lien. Howard fell behind in the payments on his mortgage to Finance Company and Finance Company decided to foreclose. The outstanding loan balance that Howard owes to the Finance Company is $300,000.00. At a valid, court-supervised foreclosure sale, the property sold for $350,000.00. Sale expenses, court costs and attorney fees were $50,000. If the Finance Company can apply proceeds from the foreclosure sale fully to the outstanding loan balance of $300,000 and Bob receives nothing for his lien on the lot, which out of the following statements provides the best explanation for such an outcome?

14.      John has a fee simple absolute interest in Blackacre and he conveys the following interests in a valid inter vivos conveyance: “I give Blackacre to my wife, Judy, for life, and the remainder to our children who reach the age of 21.” At the time of the conveyance, John and Judy has one son, Stuart, who is 21. Assume in the relevant jurisdiction that the common law Rule Against Perpetuities applies to conveyances and wills and that the doctrine of destructibility of contingent remainders is abolished. What future interest is held by Stuart, if any, at the time of the conveyance?

7.         Buyer purchased Blackacre from Seller. Seller informed Buyer about how Blackacre was encumbered with a past mortgage with a $100,000 outstanding loan balance, due to Seller’s borrowing. The past mortgage did not include a due on sale clause. Buyer agreed to take Blackacre subject to the past mortgage. Seller delivered a valid deed to Buyer, which was validly recorded.Six months later, Buyer defaulted on the mortgage and the mortgagee initiated a judicial foreclosure. The proceeds from the foreclosure sale were insufficient to cover the outstanding loan balance on the mortgage.  There are no anti-deficiency statutes in the relevant jurisdiction. Can the mortgagee recover the deficiency from Buyer or Seller?

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