Crucial Exams

Multistate Bar Examination Practice Question

A property owner conveys their land to a lender through an absolute deed. The borrower later claims that this transaction was actually intended to serve as security for a loan and not as a true conveyance. Under what principle may the borrower prove this claim?

  • The borrower’s equitable redemption option permits proving the absolute deed was a security device.

  • The parol evidence rule allows extrinsic evidence to show the parties' intent in cases where an absolute deed is alleged to be a security device.

  • Statutory intendment converts absolute deeds to security devices if a debt exists.

  • The doctrine of estoppel bars the borrower from providing evidence contradicting the terms of the absolute deed.

Multistate Bar Examination
Real Property
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