Daugharthy v. Monritt Associates

In recent years, the wrap-around mortgage has achieved widespread use in the financing of real estate transactions. S. M. Guerin, Selected Problems in Wrap-Around Financing: Suggested Approaches to Due-On-Sale Clauses and Purchaser’s Depreciable Basis, 14:3 U.Mich.J.L.Ref. 401, 401 (1981). This case concerns the application of principles of real property law to wrap-around mortgages. More particularly, this case presents a question concerning the circumstances under which an assumption of the obligation to pay a debt embodied in a pre-existing deed of trust will be implied when a buyer has…