Question 1

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 2

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 the above. 
E) None of the above. 
A) Encumbrances. 
B) Defects in the chain of title not appearing in the land records. 
C) Variances from zoning ordinances. 
D) All of the above. 
E) None of the above.

Question 3

A deed is not effective to transfer title to land until delivery.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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 6

The Fair Housing Act only prohibits discrimination based on race and color.

Accepted Answer

A) True 
 B)False

Question 7

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 8

The power to convert private property to public use is known as:

Accepted Answer

A) allocation. 
B) eminent domain. 
C) after-acquired title. 
D) enabling. 
A) allocation. 
B) eminent domain. 
C) after-acquired title. 
D) enabling.

Question 9

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

Accepted Answer

A) A requirement that all buildings are of a certain style. 
B) A requirement that all homes contain a double garage. 
C) An agreement not to sell to African-Americans. 
D) An agreement requiring a minimum size for homes. 
A) A requirement that all buildings are of a certain style. 
B) A requirement that all homes contain a double garage. 
C) An agreement not to sell to African-Americans. 
D) An agreement requiring a minimum size for homes.

Question 10

Delivery of a deed may be made by giving it to a third party to hold until the grantee performs certain conditions.

Accepted Answer

A) True 
 B)False

Question 11

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 12

A right of redemption of a mortgage cannot be defeated by operation of law.

Accepted Answer

A) True 
 B)False

Question 13

The transfer of real estate requires consideration to be valid.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 the above. 
E) None of the above. 
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 the above. 
E) None of the above.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The Dodd-Frank Act of 2010:

Accepted Answer

A) requires that lenders ensure borrowers will repay their mortgage loans. 
B) prohibits unfair and deceptive lending practices, although subprime mortgages are excluded from the scope of the Act. 
C) expands protection for borrowers of high-cost mortgage loans. 
D) requires that lenders disclose the minimum amount a consumer could pay on a variable rate mortgage. 
A) requires that lenders ensure borrowers will repay their mortgage loans. 
B) prohibits unfair and deceptive lending practices, although subprime mortgages are excluded from the scope of the Act. 
C) expands protection for borrowers of high-cost mortgage loans. 
D) requires that lenders disclose the minimum amount a consumer could pay on a variable rate mortgage.

Question 18

The Mortgage Reform and Anti-Predatory Lending Act of 2010 regulates only mortgages that are not subprime.

Accepted Answer

A) True 
 B)False

Question 19

When a contract involving the sale of real estate calls for the delivery of the deed in return for the purchase price on a certain day,this performance is known as:

Accepted Answer

A) foreclosure. 
B) warranty deed day. 
C) contract day. 
D) the closing. 
A) foreclosure. 
B) warranty deed day. 
C) contract day. 
D) the closing.

Question 20

The validity of zoning is based on the police power reserved to the states.

Accepted Answer

A) True 
 B)False

Exam 49: Transfer and Control of Real Property

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

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

A deed is not effective to transfer title to land until delivery.

Most states have adopted the:

A real estate conveyance is governed by the:

The Fair Housing Act only prohibits discrimination based on race and color.

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 power to convert private property to public use is known as:

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

Delivery of a deed may be made by giving it to a third party to hold until the grantee performs certain conditions.

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.

A right of redemption of a mortgage cannot be defeated by operation of law.

The transfer of real estate requires consideration to be valid.

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:

Which of the following is true of restrictive covenants?

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

The Dodd-Frank Act of 2010:

The Mortgage Reform and Anti-Predatory Lending Act of 2010 regulates only mortgages that are not subprime.

When a contract involving the sale of real estate calls for the delivery of the deed in return for the purchase price on a certain day,this performance is known as:

The validity of zoning is based on the police power reserved to the states.

Introduction to Law

Business Ethics

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

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

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 Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

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

Interests in Real Property

Trusts and Wills

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