Debra Buys Land from Oscar,relying Upon a Mortgage Release Executed

question 55

Multiple Choice

Debra buys land from Oscar,relying upon a mortgage release executed and recorded by the mortgagee,Keith.Keith,however,had previously assigned the mortgage to Andrew who failed to have the assignment recorded.In this case,Andrew has:

• A) no claim against the property in the absence of Debra's actual knowledge of the assignment by Keith.
• B) no claim against the property because a mortgagee has no right to assign the mortgage to another person.
• C) a claim against the property because the assignment to him took place before Debra's purchase of the land.
• D) a claim against the property because recording is not necessary to the effectiveness of a mortgage assignment.

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Definitions:

Penalties

Sanctions or punishments imposed for breaking a law, rule, or contract, which may include fines, imprisonment, or other forms of retribution.

Accountant-client Relationship

A professional connection between an accountant and their client, based on trust and confidentiality, to manage financial records and tax matters.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Professional Misconduct

Inappropriate or unethical behavior by a professional in their line of work, violating professional ethics or standards.