Claudette inherits a house in New Orleans from her grandmother. The property was the grandmother's separate property. Claudette is now married to Remy. She wants to mortgage the inherited property to fund a business venture. Under Louisiana law, which of the following is correct?
Correct Answer
A) Claudette alone may sign the mortgage because the inherited property is her separate property
Under Louisiana Civil Code Art. 2341, property inherited by a spouse during marriage is classified as that spouse's separate property, not community property. La. Civil Code Art. 2346 provides that each spouse acting alone may manage, control, and encumber their own separate property. Therefore, Claudette may mortgage her inherited home without Remy's signature or consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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