On May 1, 2018, Cynthia Hendrix bought her home and First Bank recorded its mortgage. On June 24, 2020, Cynthia sold her home to Stanton Gulbrandsen for $250,000. At that time, Cynthia's mortgage was $225,000. Stanton assumed Cynthia's mortgage and gave Second Bank a second mortgage for $225,000. Second Bank did not record its mortgage. On October 12, 2020, Stanton sold the home to Derek Bolger for $275,000. Bolger took the property subject to the previous mortgages and executed a $275,000 mortgage to Third Bank. Third Bank recorded its mortgage on October 18, 2020. Third Bank knew of the Second Bank mortgage.
-On commercial properties, leases that antedate the mortgage:
A) Need not be honored by the mortgagee.
B) Are generally void.
C) Must be honored by the mortgagee.
D) Are voidable at the mortgagee's option.
Correct Answer:
Verified
Q110: On May 1, 2018, Cynthia Hendrix bought
Q111: On May 1, 2018, Cynthia Hendrix bought
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Q117: Zack Peyton borrowed $398,000 from Fifth First
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