Property II
Midterm
Spring 2000
Prof. Brower

In 1980 Olive was the record owner of unit 724, a condominium in the Blackacre Towers oceanfront resort community on the Big Island of Hawaii. In 1985 Olive conveyed unit 724 to Adeline for $150,000 by warranty deed. Adeline moved into unit 724 immediately and recorded that deed in 1995. In 1999, Adeline resold her unit in Blackacre Towers to Boris by warranty deed for $250,000.

While on vacation in California on Valentine's Day, 1990, Olive met Pat and had a very passionate romance with Pat. Pat learned of the Blackacre Towers property (but not of any prior interests in the property) and asked Olive for unit 724 as a token of their love. Olive did so, making a gift to Pat of a warranty deed to unit 724 in fee simple absolute. Pat recorded that deed immediately. Olive and Pat lived together in California until Olive died in 1996. In 1997, Pat sold unit 724, Blackacre Towers by special warranty deed to Quincetta for $200,000. Quincetta recorded her deed immediately.

In 2000, Quincetta was on a plane heading to Hawaii to visit her Blackacre Towers property for the first time. When she arrived at Blackacre Towers, she discovered that Boris also claimed an interest in unit 724. Quincetta and Boris sued each other in Circuit Court for the Circuit of Hawaii to determine which one of them owned unit 724, Blackacre Towers.

Hawaii has a race-notice recording act that protects bona fide purchasers of all interests in land, deeds, leases, easements, and mortgages. The Hawaii statute of limitations for all actions on land transactions, marketable title, title covenants, etc. is 20 years.

Answer the following questions clearly, completely and concisely. You may use only one exam booklet, writing only on the right-hand pages of the booklet.

1. Who owns Blackacre Towers, unit 724, Boris or Quincetta? Why?

2. Can the losing party (Boris or Quincetta) sue his or her immediate grantor (Adeline or Pat)? Why?

3. Can the losing party (Boris or Quincetta) sue his or her remote grantor (Olive's estate)? Why?

4. Would your answer to question #1 change, and why, if the first paragraph of the facts was changed as follows:

In 1980 Olive was the record owner of unit 724, a condominium in the Blackacre Towers oceanfront resort community on the Big Island of Hawaii. In 1985 Olive gave a $150,000 mortgage on unit 724 to Adeline to secure money Adeline lent to Olive. Adeline recorded that mortgage in 1995. In 1999, Adeline transferred her mortgage on the unit in Blackacre Towers to Boris.