Vadar owned Tatooine Farm. He sold the farm to Luke. Luke neverrecorded the deed....

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Accounting

Vadar owned Tatooine Farm. He sold the farm to Luke. Luke neverrecorded the deed. Vadar stayed on the property as a tenant for twoyears. Near the end of the two years, Vadar learned that Luke hadnever recorded the deed.

Vadar advertised Tatooine Farm for sale. Leia negotiated withVadar for the purchase of the property thinking that Vadar was theowner. Leia also checked the records at the recording office and,finding no reason to question Vadar’s ownership of the property,purchased Tatooine Farm from Vadar. Leia recorded the deed. Vadarfled to a place far, far away with the purchase money.

Meanwhile, Luke had failed to pay the real estate taxes onTatooine Farm for the two years in question thinking it was theresponsibility of Vadar, the tenant. Ultimately, Leia and Lukedisputed over the ownership of the property. Who gets the property,Leia or Luke? And, is Luke responsible for the two years of realestate taxes assessed while Vadar occupied the property as atenant?

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In: AccountingVadar owned Tatooine Farm. He sold the farm to Luke. Luke neverrecorded the deed. Vadar...Vadar owned Tatooine Farm. He sold the farm to Luke. Luke neverrecorded the deed. Vadar stayed on the property as a tenant for twoyears. Near the end of the two years, Vadar learned that Luke hadnever recorded the deed.Vadar advertised Tatooine Farm for sale. Leia negotiated withVadar for the purchase of the property thinking that Vadar was theowner. Leia also checked the records at the recording office and,finding no reason to question Vadar’s ownership of the property,purchased Tatooine Farm from Vadar. Leia recorded the deed. Vadarfled to a place far, far away with the purchase money.Meanwhile, Luke had failed to pay the real estate taxes onTatooine Farm for the two years in question thinking it was theresponsibility of Vadar, the tenant. Ultimately, Leia and Lukedisputed over the ownership of the property. Who gets the property,Leia or Luke? And, is Luke responsible for the two years of realestate taxes assessed while Vadar occupied the property as atenant?

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