Flashcards Studio

O conveyed Warehouse "to X and Y as joint tenants with right of survivorship." The deed was valid and recorded. Without telling Y, X borrowed money from Bank and gave Bank a mortgage on "X's interest in Warehouse." X made several payments but died before default and before any foreclosure. X's will left all property to Devisee. After X's death, Y claimed sole ownership of Warehouse by survivorship. Bank claimed that X's mortgage severed the joint tenancy and that Bank could foreclose on X's one-half interest. Devisee also claimed X's one-half interest.
Assume there is no statute changing the common-law joint tenancy rules. Analyze the result first if the jurisdiction follows lien theory of mortgages, and then if it follows title theory.
Discuss whether the mortgage severed the joint tenancy, the effect of X's death before foreclosure, and the rights of Y, Bank, and Devisee under each mortgage theory.