Essay Flashcards

Alejandra, the registered owner of Lot 3039, sells the lot to Marco by Deed of Sale. At closing, Marco signs a document labeled Waiver of Title Defects, containing: “I waive any claim against Alejandra for defects in the title or for reconveyance arising from title defects, except for fraud.” After transfer and recording, a previously undisclosed mortgage lien on Lot 3039 is discovered, jeopardizing Marco’s title. (a) Is Marco’s waiver valid to bar Marco’s action for reconveyance or damages? Identify the controlling doctrine on waiver and apply it to the facts, including the requirements of a valid waiver and any fraud-related exceptions. (b) If Dana, acting in good faith and without notice of the waiver or the lien, later purchases Lot 3039 from Marco, is Dana bound by Marco’s waiver? Explain with respect to the third-party effects of waivers in land-title transactions.