Question 1

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. D

Question 2

The debtor who uses real estate to secure an obligation is the mortgagee.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following would be an invalid restrictive covenant in a deed?

Accepted Answer

A)  A requirement that all buildings are of a farmhouse style, painted either white, yellow or gray. 
B)  A requirement that all homes contain a double garage. 
C)  An agreement not to sell to people of Middle Eastern descent. 
D)  An agreement requiring a minimum size of 2200 square feet for homes. 
A)  A requirement that all buildings are of a farmhouse style, painted either white, yellow or gray. 
B)  A requirement that all homes contain a double garage. 
C)  An agreement not to sell to people of Middle Eastern descent. 
D)  An agreement requiring a minimum size of 2200 square feet for homes. C

Question 4

Pam sells to Rob property which has a $50,000 mortgage in favor of First Bank.Rob purchases the property subject to the mortgage.The value of the property declines and there is a default on the mortgage.When First Bank forecloses, the property sells for only $30,000.
a.Can First Bank recover the $20,000 balance from Rob? Explain.
b.Can First Bank recover the $20,000 from Pam? Explain.

Accepted Answer

a.No, Rob purchased the property "subjec

Question 5

Because documents affecting ownership of property are recorded, a chronological record of transactions concerning the property can be obtained by a(n):

Accepted Answer

A)  warranty deed. 
B)  title search. 
C)  attorney's opinion. 
D)  assumption of a mortgage. 
A)  warranty deed. 
B)  title search. 
C)  attorney's opinion. 
D)  assumption of a mortgage.

Question 6

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 7

A deed of trust differs from a mortgage in that the former conditionally conveys the property to a trustee for the benefit of the creditor.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following carries with it no warranties or guarantees of title?

Accepted Answer

A)  Warranty deed. 
B)  Quitclaim deed. 
C)  Special warranty deed. 
D)  All types of deeds carry a warranty of title. 
A)  Warranty deed. 
B)  Quitclaim deed. 
C)  Special warranty deed. 
D)  All types of deeds carry a warranty of title.

Question 9

The usual method of enforcing a restrictive covenant is by specific performance.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Many jurisdictions now require all sellers to disclose hidden defects that materially affect the property's value if reasonable examination would not reveal such defects.

Accepted Answer

A) True 
 B)False

Question 12

The law of conveyancing firmly establishes that a contract for the sale of land carries an implied seller's obligation to transfer marketable title.

Accepted Answer

A) True 
 B)False

Question 13

A restrictive covenant stating that a house cannot be sold to someone who is not of the Caucasian race will be upheld by the courts.

Accepted Answer

A) True 
 B)False

Question 14

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 as of the time of the taking. 
B)  equivalent property. 
C)  the option of keeping the property. 
D)  his 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 price for the property.

Question 15

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 16

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 17

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 18

A title search involves examining prior transfers of and encumbrances to the property.

Accepted Answer

A) True 
 B)False

Question 19

The traditional common law rule regarding the sale of property is caveat emptor which means, "let the seller beware."

Accepted Answer

A) True 
 B)False

Question 20

Which is not true about zoning ordinance variances:

Accepted Answer

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

Exam 49: Transfer and Control of Real Property

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

The debtor who uses real estate to secure an obligation is the mortgagee.

Which of the following would be an invalid restrictive covenant in a deed?

Because documents affecting ownership of property are recorded, a chronological record of transactions concerning the property can be obtained by a(n):

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

A deed of trust differs from a mortgage in that the former conditionally conveys the property to a trustee for the benefit of the creditor.

Which of the following carries with it no warranties or guarantees of title?

The usual method of enforcing a restrictive covenant is by specific performance.

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

Many jurisdictions now require all sellers to disclose hidden defects that materially affect the property's value if reasonable examination would not reveal such defects.

The law of conveyancing firmly establishes that a contract for the sale of land carries an implied seller's obligation to transfer marketable title.

A restrictive covenant stating that a house cannot be sold to someone who is not of the Caucasian race will be upheld by the courts.

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

A real estate conveyance is governed by the:

The right of redemption would require:

A title search involves examining prior transfers of and encumbrances to the property.

The traditional common law rule regarding the sale of property is caveat emptor which means, "let the seller beware."

Which is not true about zoning ordinance variances:

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

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 Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

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

Interests in Real Property

Trusts and Wills

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