Pavla Is the Victim of Mortgage Fraud in Connection with a Piece

question 57

Multiple Choice

Pavla is the victim of mortgage fraud in connection with a piece of land called Blackacre.Blackacre is located in a jurisdiction that uses a land titles system.Which of the following statements is TRUE?

• A)Pavla cannot possibly lose title to Blackacre unless she carelessly allowed the fraud to occur.
• B)Pavla is entitled to compensation from the assurance fund as soon as she proves that she is the victim of fraud.
• C)Fraud is a general exception to the traditional doctrine of indefeasibility.
• D)The courts usually respond to mortgage fraud by ordering the victim and the mortgagee to hold the affected property as joint tenants.
• E)Lawrence v Wright created the concept of deferred indefeasibility,which delays the creation of an indefeasible title until an interest is registered by a person who did not deal with the rogue.

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Definitions:

Contingent Consideration

An additional payment that the buyer agrees to make to the seller in a business acquisition, which is dependent on specific future events or performances.

Fair Value

An estimate of the price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Liability

A financial obligation or debt owed by a company to another entity.

Consolidate Financial Statements

Combined financial statements of a parent company and its subsidiaries, presenting the group as a single economic entity.