On November 5, 2001, Commercial Builders, Inc., contracted with Concord to
construct a steel building that would house a motorcross track. This contract called for
Concord to begin construction ASAP, and Concord began construction. At the time the
construction began, Concord had not yet closed on buying the property, but had been
given the go-ahead by the owner for construction to begin.
The real estate sale ran into difficulties and did not close. At that time, the building was
85% complete. On January 4, 2002, Concord filed a mechanic’s lien against the
property. In September 2002, the partially constructed building was completely
destroyed by a tornado. Commercial sought to foreclose its lien on the land. The owner
said he did not give his consent for the work or a lien. Which of the following is
correct?
a. Commercial builders cannot file a lien on the property because Concord did not own
the property
b. Commercial builders cannot file a lien because there is no work to show for the costs
c. Commercial builders cannot file a lien for steel buildings
d. Commercial builders can file a lien because the consent of the owner was implied
through the contract and the agreement for the building to begin
Explain the difference between an easement by necessity and easement by implication.
Wilford Brimhouse is a limited partner in a real estate partnership which owns an office
building. The income/loss summary for the partnership looks as follows:
2008: ($100,000)
2009: $25,000
Wilford is a broker and had personal income of $121,000 in 2008 and $97,000 in 2009.
What losses can Wilford deduct?
Creditors can treat a fee tail as a fee simple estate.
Uniform laws such as the Uniform Partnership Act are part of state legislative codes.
April 1, 2009 ‘“ O signs construction mortgage for construction of his home; Bank
records construction mortgage
August 15, 2009 ‘“ O signs permanent mortgage for purchase of newly’‘built home that
covers home and all after’‘acquired property/fixtures; Bank records mortgage
October 15, 2009 ‘“ Sears allows O to purchase on credit a new hot water heater
October 20, 2009 ‘“ O installs hot water heater
October 22, 2009 ‘“ Sears files financing statement
January 2, 2010 ‘“ O defaults on mortgage payment
February 2, 2010 ‘“ O declares bankruptcy
Discuss who will have priority in bankruptcy.
Community property is used to determine property rights in common law marriages.
An Article 9 financing statement can be renewed within the six-month period just prior
to its expiration.
Jim and Tammy Barker donated land to the Daniel Boone University with the following
language: “To the trustees of Daniel Boone University on the condition that the
University remain affiliated with the TV Evangelists Ministry, Inc.” Jim and Tammy
passed away and left all their property to their son, Jimmy, Jr. Shortly after their death,
Daniel Boone University severed its ties with TV Evangelists. When Jimmy, Jr. learned
of the severance, he sold the property to Hall Associates, a commercial real estate firm.
Hall now wishes to develop the property and Daniel Boone University claims it still has
title and has brought a quiet title action. Discuss the series of conveyances and
determine who has title to the property.