Question 1

Most states have adopted the:

Accepted Answer

A)  title theory, which gives the mortgagor the right of ownership and possession. 
B)  lien theory, under which the mortgagor retains title and is entitled to possession to the exclusion of the mortgagee, even if the mortgagor defaults. 
C)  title theory, which brings no right of redemption. 
D)  position that the person who owns property subject to a mortgage will not be liable to the creditor for "waste." 
A)  title theory, which gives the mortgagor the right of ownership and possession. 
B)  lien theory, under which the mortgagor retains title and is entitled to possession to the exclusion of the mortgagee, even if the mortgagor defaults. 
C)  title theory, which brings no right of redemption. 
D)  position that the person who owns property subject to a mortgage will not be liable to the creditor for "waste."

Question 2

John sells to Beth property which has a $150,000 mortgage in favor of Avco Bank. Beth purchases the property subject to the mortgage. The value of the property declines and there is a default on the mortgage. When Avco Bank forecloses, the property sells for only $130,000. 
a. Can Avco Bank recover the $20,000 balance from Beth ? Explain. 
b. Can Avco Bank recover the $20,000 from John ? Explain.

Accepted Answer

a. No, Beth purchased the property "subj

Question 3

a. What is a marketable title? Explain. 
b. What is the implied warranty of habitability? Explain. 
c. Alice buys a home in which she plans to live with her family. After she moves in, everyone in the family becomes very ill. Eventually, they trace the source of the illness to chemicals in the cabinets and walls of the home. What can Alice do? Explain.

Accepted Answer

a. Marketable title means that the title

Question 4

A special warranty deed will give the buyer better rights against the grantor (seller) than a general warranty deed.

Accepted Answer

A) True 
 B)False

Question 5

To run with the land, a restrictive covenant must involve promises that are enforceable under the law of contracts.

Accepted Answer

A) True 
 B)False

Question 6

A warranty deed contains an implied warranty of good title and quiet enjoyment of the land.

Accepted Answer

A) True 
 B)False

Question 7

Explain the difference between the lien theory and the title theory in relation to mortgages.

Accepted Answer

The rights and duties of the parties to

Question 8

A transaction involving real estate whereby one party deposits a deed or money with a third party who holds the deed or funds until the happening of an agreed upon event is called:

Accepted Answer

A)  adverse possession. 
B)  escrow. 
C)  foreclosure. 
D)  abstract of title. 
A)  adverse possession. 
B)  escrow. 
C)  foreclosure. 
D)  abstract of title.

Question 9

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.

Question 10

If Roger's farm land is condemned in order to build a park and playground for the city, he must be given:

Accepted Answer

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

Question 11

The seller's warranty that he has marketable title to the land would be breached if the buyer discovers:

Accepted Answer

A)  a lien on the land. 
B)  a defect in the chain of title. 
C)  a lease of the premises. 
D)  Any of these. 
A)  a lien on the land. 
B)  a defect in the chain of title. 
C)  a lease of the premises. 
D)  Any of these.

Question 12

An exemption from application of the Fair Housing Act applies to single-family homes owned by private individuals who own fewer than four houses.

Accepted Answer

A) True 
 B)False

Question 13

To be effective, title to land may transferred only by deed.

Accepted Answer

A) True 
 B)False

Question 14

Marketable title means that the title is free from which of the following?

Accepted Answer

A)  Encumbrances. 
B)  Defects in the chain of title not appearing in the land records. 
C)  Variances from zoning ordinances. 
D)  All of these. 
A)  Encumbrances. 
B)  Defects in the chain of title not appearing in the land records. 
C)  Variances from zoning ordinances. 
D)  All of these.

Question 15

If Russell'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 16

Foreclosure is an action through which the mortgage holder takes the property from the mortgagor, ends the mortgagor's rights in the property, and sells the property to pay the mortgage debt.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true of restrictive covenants?

Accepted Answer

A)  They are widely used in subdivisions. 
B)  Restrictive covenants are construed strictly against a party asserting their applicability. 
C)  They may bind lot purchasers as though the restrictions had actually been asserted in their own deeds. 
D)  All of these. 
A)  They are widely used in subdivisions. 
B)  Restrictive covenants are construed strictly against a party asserting their applicability. 
C)  They may bind lot purchasers as though the restrictions had actually been asserted in their own deeds. 
D)  All of these.

Question 18

Discuss the types of deeds that can be used to transfer title.

Accepted Answer

Warranty deeds, special warranty deeds,

Question 19

The right of redemption would require:

Accepted Answer

A)  a court order. 
B)  assent of all parties. 
C)  payment of the entire debt with interest. 
D)  payment only of past due installments. 
A)  a court order. 
B)  assent of all parties. 
C)  payment of the entire debt with interest. 
D)  payment only of past due installments.

Question 20

a. What public restrictions can be placed upon the use of land? Explain. 
b. What private restrictions can be placed upon the use of land? Explain.

Accepted Answer

a. Public restrictions on the use of lan

Exam 49: Transfer and Control of Real Property

Most states have adopted the:

A special warranty deed will give the buyer better rights against the grantor (seller) than a general warranty deed.

To run with the land, a restrictive covenant must involve promises that are enforceable under the law of contracts.

A warranty deed contains an implied warranty of good title and quiet enjoyment of the land.

Explain the difference between the lien theory and the title theory in relation to mortgages.

A transaction involving real estate whereby one party deposits a deed or money with a third party who holds the deed or funds until the happening of an agreed upon event is called:

A real estate conveyance is governed by the:

If Roger's farm land is condemned in order to build a park and playground for the city, he must be given:

The seller's warranty that he has marketable title to the land would be breached if the buyer discovers:

An exemption from application of the Fair Housing Act applies to single-family homes owned by private individuals who own fewer than four houses.

To be effective, title to land may transferred only by deed.

Marketable title means that the title is free from which of the following?

If Russell'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.

Foreclosure is an action through which the mortgage holder takes the property from the mortgagor, ends the mortgagor's rights in the property, and sells the property to pay the mortgage debt.

Which of the following is true of restrictive covenants?

Discuss the types of deeds that can be used to transfer title.

The right of redemption would require:

a. What public restrictions can be placed upon the use of land? Explain. b. What private restrictions can be placed upon the use of land? Explain.

Introduction to Law

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