Question 1

Someone who expressly assumes a mortgage is personally obligated to pay it.

Accepted Answer

A) True 
 B)False

Question 2

If Bob's mortgage debt is greater than the amount for which his farm is sold in a foreclosure action, he is excused from payment of the remainder.

Accepted Answer

A) True 
 B)False

Question 3

The Wall Street Reform and Consumer Protection Act of 2010 requires all but which of the following in relation to mortgages?

Accepted Answer

A) That lenders ensure a borrower's reasonable ability to repay the loan. 
B) That subprime mortgages not be issued. 
C) Disclosure of the maximum amount a consumer could pay on a variable rate mortgage. 
D) Expanded protection for borrowers of high-cost loans. 
A) That lenders ensure a borrower's reasonable ability to repay the loan. 
B) That subprime mortgages not be issued. 
C) Disclosure of the maximum amount a consumer could pay on a variable rate mortgage. 
D) Expanded protection for borrowers of high-cost loans.

Question 4

An instrument representing an interest in real property created to secure repayment of the debt is called a:

Accepted Answer

A) warranty deed. 
B) foreclosure. 
C) mortgage. 
D) default judgment. 
A) warranty deed. 
B) foreclosure. 
C) mortgage. 
D) default judgment.

Question 5

Title insurance is unnecessary if a title search is made.

Accepted Answer

A) True 
 B)False

Question 6

Zoning ordinance variances:

Accepted Answer

A) are usually available for hardships caused by the actions of the property owner seeking the variance. 
B) are available if it affirmatively appears that the property as zoned cannot yield a reasonable return on the owner's investment in the property. 
C) are available for hardships caused by the variance that are common to the zoned area. 
D) All of these. 
A) are usually available for hardships caused by the actions of the property owner seeking the variance. 
B) are available if it affirmatively appears that the property as zoned cannot yield a reasonable return on the owner's investment in the property. 
C) are available for hardships caused by the variance that are common to the zoned area. 
D) All of these.

Question 7

The characteristics of a special warranty deed include:

Accepted Answer

A) the grantor warrants the title so far as it concerns his acts or omissions. 
B) the grantor warrants the title to be free of defects caused by acts or omissions of others. 
C) a general warranty of title. 
D) All of these. 
A) the grantor warrants the title so far as it concerns his acts or omissions. 
B) the grantor warrants the title to be free of defects caused by acts or omissions of others. 
C) a general warranty of title. 
D) All of these.

Question 8

Eminent domain does not grant the government power to take private land for public use.

Accepted Answer

A) True 
 B)False

Question 9

In a quitclaim deed, the grantor warrants that:

Accepted Answer

A) he has no knowledge of any encumbrances. 
B) he himself has not impaired title to the land. 
C) the land passes with no impairment of title. 
D) he is conveying whatever interest he has in the land. 
A) he has no knowledge of any encumbrances. 
B) he himself has not impaired title to the land. 
C) the land passes with no impairment of title. 
D) he is conveying whatever interest he has in the land.

Question 10

The warranty of habitability benefits only the original purchaser of a house.

Accepted Answer

A) True 
 B)False

Question 11

Jan owns lots in the Cruz neighborhood, where she was planning to build an 8-story apartment complex.Cruz has adopted a single-family dwelling ordinance that encompasses Jan's lots.Jan goes to the library and finds she can attempt to get judicial review of ordinances based on which of the following?

Accepted Answer

A) The zoning ordinance is invalid. 
B) The ordinance bears no reasonable relation to public health, safety, morals, or welfare. 
C) The ordinance amounts to confiscation of property. 
D) All of these. 
A) The zoning ordinance is invalid. 
B) The ordinance bears no reasonable relation to public health, safety, morals, or welfare. 
C) The ordinance amounts to confiscation of property. 
D) All of these.

Question 12

Which of the following is NOT essential to a valid deed?

Accepted Answer

A) Grantor 
B) Grantee 
C) Delivery 
D) Recording 
A) Grantor 
B) Grantee 
C) Delivery 
D) Recording

Question 13

Under notice-race statutes, a subsequent purchaser of real estate will prevail if he or she:

Accepted Answer

A) records the deed first. 
B) takes without actual knowledge of a prior unrecorded conveyance and records the deed first. 
C) takes with actual knowledge of the prior conveyance and records first. 
D) secures a guarantee of indemnification against title defects from the seller and records the written document first. 
A) records the deed first. 
B) takes without actual knowledge of a prior unrecorded conveyance and records the deed first. 
C) takes with actual knowledge of the prior conveyance and records first. 
D) secures a guarantee of indemnification against title defects from the seller and records the written document first.

Question 14

To be effective, a deed need not be conveyed for consideration.

Accepted Answer

A) True 
 B)False

Question 15

A warranty deed by Arthur to Bob includes Arthur's promise that he will be liable to Bob for any defects in title.

Accepted Answer

A) True 
 B)False

Question 16

Title insurance protects an owner of real property from losses due to defects in title, liens, or encumbrances.

Accepted Answer

A) True 
 B)False

Question 17

If Stan's land is condemned in order to build a subway system for the city, he must be given:

Accepted Answer

A) the fair market value of the property. 
B) equivalent property. 
C) the option of keeping the property. 
D) his price for the property. 
A) the fair market value of the property. 
B) equivalent property. 
C) the option of keeping the property. 
D) his price for the property.

Question 18

General contract law provisions govern the sale of real property.

Accepted Answer

A) True 
 B)False

Question 19

In a state that adopts the lien theory regarding mortgages, the borrower would have the right to:

Accepted Answer

A) burn down the barn. 
B) live on the land after default. 
C) possess the land after foreclosure. 
D) refuse to discharge a prior lien. 
A) burn down the barn. 
B) live on the land after default. 
C) possess the land after foreclosure. 
D) refuse to discharge a prior lien.

Question 20

A real estate conveyance is governed by the:

Accepted Answer

A) statute of frauds. 
B) financial decisions of the lender. 
C) terms of the mortgage. 
D) law of secured transactions. 
A) statute of frauds. 
B) financial decisions of the lender. 
C) terms of the mortgage. 
D) law of secured transactions.

Exam 49: Transfer and Control of Real Property

Someone who expressly assumes a mortgage is personally obligated to pay it.

If Bob's mortgage debt is greater than the amount for which his farm is sold in a foreclosure action, he is excused from payment of the remainder.

The Wall Street Reform and Consumer Protection Act of 2010 requires all but which of the following in relation to mortgages?

An instrument representing an interest in real property created to secure repayment of the debt is called a:

Title insurance is unnecessary if a title search is made.

Zoning ordinance variances:

The characteristics of a special warranty deed include:

Eminent domain does not grant the government power to take private land for public use.

In a quitclaim deed, the grantor warrants that:

The warranty of habitability benefits only the original purchaser of a house.

Which of the following is NOT essential to a valid deed?

Under notice-race statutes, a subsequent purchaser of real estate will prevail if he or she:

To be effective, a deed need not be conveyed for consideration.

A warranty deed by Arthur to Bob includes Arthur's promise that he will be liable to Bob for any defects in title.

Title insurance protects an owner of real property from losses due to defects in title, liens, or encumbrances.

If Stan's land is condemned in order to build a subway system for the city, he must be given:

General contract law provisions govern the sale of real property.

In a state that adopts the lien theory regarding mortgages, the borrower would have the right to:

A real estate conveyance is governed by the:

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Trusts and Decedents Estates

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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