Assignment:
Who Owns What?
A woman named Bonnie walks into your firm one day requesting help in a dispute over a property she purchased. The circumstances of the property are as follows:
Ponch owned Easy Acres, an undeveloped parcel of land located in Green. Ponch had always wanted to purchase a Tomahawk motorcycle, but the ones that were available for sale were always beyond his price range. But thanks to a significant increase in the value of the Easy Acres parcel, Ponch finally had the means to acquire his coveted motorcycle. Ponch gets a loan from his friend Jon, securing the loan with a mortgage on Easy Acres for $100,000. Jon forgets to record the mortgage.
Ponch subsequently sold Easy Acres to Grossman for $75,000 in cash and rode off to Arizona to live out his life-long dream of starring in television commercials as a mattress pitchman. Grossman recorded the deed of sale and immediately built a roller derby track on Easy Acres, which increased the value of the land to over $500,000.
Grossman sold the facility to Bonnie, a roller derby impresario and your client, for $600,000 in a duly recorded deed.
One day, Jon happened by Easy Acres and noticed the roller derby facility. He was unable to contact Ponch but located Bonnie, presented her with the mortgage documents, and demanded that Bonnie pay him his $100,000.
Bonnie needs help with the action Jon is threatening to bring for recovery of his $100,000. Your firm's partner asks you to help her craft her response to Bonnie.
Create a 2-page double-spaced APA Style memorandum, explain what rights Grossman, and subsequently Bonnie, have with respect to Easy Acres and why. What rights does Jon have, and why?
1) What rights did Grossman have with respect to the property, and subsequently, what rights does Bonnie have with respect to the property? Why?
2) What rights does Jon have with respect to the property? Why?
3) Some place in your memo, please state whether Bonnie has to pay Jon the $100,000.