Deck 49: Transfer and Control of Real Property

Question 1

If Nate gives a warranty deed to Carla, it includes Nate's promise that he will be liable to Carla for any defects in title.

Answer 1

True

Question 2

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.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

In most states, it is not necessary to record a deed for title to pass to the grantee.

Question 5

A deed of trust is almost identical to a warranty deed.

Question 6

A mortgage creates a security interest in real property.

Question 7

The Fair Housing Act is Title VIII of the Civil Rights Act.

Question 8

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

Question 9

The UCC applies to real estate mortgages and trust deeds since they are security interests.

Question 10

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.

Question 11

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

Question 12

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

Question 13

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

Question 14

The transfer of real estate requires consideration to be valid.

Question 15

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.

Question 16

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

Question 17

If Julia buys a 4 bedroom home that subject to an existing mortgage, she will have to pay the mortgage if the mortgagor does not.

Question 18

An oral agreement for the sale of land is enforceable under the statute of frauds.

Question 19

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

Question 20

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

Question 21

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

Question 22

Deeds must describe the land conveyed, describe the estate conveyed, and indicate the consideration received by the grantor.

Question 23

Restrictive covenants are strictly construed against the party asserting their applicability.

Question 24

Title insurance policies may be issued to protect the interests of mortgagees or tenants of property.

Question 25

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

Question 26

Anders Builders builds and sells new residences. According to the law in all states, Anders impliedly warrants to the original purchasers and to subsequent buyers for a reasonable time that the houses are free of latent defects.

Question 27

LeBraun is seeking a variable rate mortgage from High Street Financial. Under the Mortgage Reform and Anti-Predatory Lending Act of 2010, which modifies the Truth-in-Lending Act, High Street must disclose the maximum amount LeBraun could pay on the mortgage, with a warning that payments will vary based on interest rate changes.

Question 28

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.

Question 29

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

Question 30

Latosha grants a quitclaim deed to some property to Glenn. Now Glenn has found that someone else has a life estate in the land. Latosha has breached the warranty of title.

Question 31

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

Question 32

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

Question 33

There are three major types of deeds.

Question 34

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

Question 35

An uncommon but possible way to obtain title to property is by adverse possession.

Question 36

One common type of restrictive covenant restricts the use of property to residential purposes.

Question 37

Title insurance is unnecessary if a title search is made.

Question 38

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

Question 39

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

Question 40

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

Question 41

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

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

Question 42

The Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 amended the Truth in Lending Act to exempt banks with assets below $250 billion from some requirements for residential mortgage loans.

Question 43

Controls that apply to the use of privately owned property include but are not limited to:

A) zoning.
B) eminent domain.
C) restrictive covenants.
D) All of these.

Question 44

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

Question 45

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

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

Question 46

An enabling statute:

A) delegates the power to zone to local city and village authorities.
B) typically allows municipalities to regulate and limit building heights.
C) typically grants the power to limit the intensity of use in a particular area.
D) All of these statements are true.

Question 47

Most states have adopted the:

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 48

In most states, eminent domain would permit taking of privately owned land for all the following purposes except:

A) constructing a railroad bridge over a river.
B) building senior citizens' home.
C) building a discount store.
D) building a post office.

Question 49

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 the following:

A) the zoning ordinance is invalid.
B) the ordinance has been applied unreasonably.
C) the ordinance amounts to confiscation of property.
D) All of these.

Question 50

A deed ordinarily contains all of the following except:

A) a description of the land.
B) a description of the consideration.
C) the signature of the grantor.
D) a description of the quantity of estate conveyed.

Question 51

Most zoning ordinances provide that a nonconforming use may be terminated:

A) immediately.
B) after 6 months of the structure's future useful life.
C) when a nonconforming structure is destroyed or substantially damaged.
D) at the end of a tenant's lease.

Question 52

Judah  assumes the mortgage when she  purchases Erick's house. Which of the following is true?

A) Only Judah is personally liable to pay the mortgage.
B) Only Erick is personally liable to pay the mortgage.
C) Erick and Judah are both personally liable to pay the mortgage.
D) Erick is liable only if Judah defaults on paying the mortgage.

Question 53

A typical enabling statute grants municipalities all but which of the following powers? The power to:

A) regulate the bulk of buildings to be erected.
B) divide the entire municipality into districts of such number and shape as may be deemed best.
C) determine the area of open spaces within buildings.
D) All of the answer choices are typical powers granted by enabling statutes.

Question 54

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.

Question 55

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

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 56

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

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 57

Adverse possession requires no:

A) set time period.
B) actual usage of the land.
C) formality.
D) None of these are required.

Question 58

Adverse possession:

A) is an involuntary transfer of title.
B) is an illegal transfer of title.
C) allows a person a chance to retrieve their mortgage.
D) None of these statements is accurate.

Question 59

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

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

Question 60

The right of redemption would require:

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 61

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

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

Question 62

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

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.

Question 63

A doctrine allowing a mortgagor to relieve her property from a mortgage lien by paying the debt that the mortgage secures is known as:

A) rehabilitation.
B) the covenant of quiet title.
C) foreclosure.
D) a right of redemption.

Question 64

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

Question 65

The 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 is known as:

A) foreclosure.
B) equity of redemption.
C) adverse possession.
D) execution of a deed of trust.

Question 66

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

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

Question 67

In order for a deed to be effective between the purchaser and the seller of real estate, the deed must:

A) be in writing and signed by both parties.
B) include the actual sale price.
C) be recorded pursuant to the state statute.
D) be delivered to the buyer by the seller with the intent to transfer title.

Question 68

Sam has agreed to sell a warehouse to Jordan for $150,000. The contract says that Sam will convey to Jordan whatever interest he has in the property, but does not state that he has any interest. Jordan is entitled to a(n):

A) insurable deed.
B) quitclaim deed.
C) general warranty deed.
D) special warranty deed.

Question 69

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:

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

Question 70

A deed containing a number of promises including covenant of title, quiet enjoyment, against encumbrances, and warranty are found in a:

A) warranty deed.
B) guarantee deed.
C) quitclaim deed.
D) general deed.

Question 71

The Dodd-Frank Act of 2010:

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 72

Which of the following is true of restrictive covenants?

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 73

Joel lived in a block with a mixture of one-family and two-family homes. He finished the third floor of his home for his family and when his children left home, he rented the space out as two apartments. Six months later, the town enacted a zoning ordinance restricting occupancy of the building to a maximum of two unrelated families. Joel's best argument for waiving the ordinance is:

A) there is not much difference between there being two families and three families in the building.
B) he cannot meet the costs of maintaining the building unless he rents both apartments.
C) he is not going to add any more occupants to the building.
D) he was using the third floor as apartments for rent before the zoning ordinance was enacted.

Question 74

A real estate conveyance is governed by the:

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

Question 75

A contract agreeing to indemnify the insured against certain specified defects in title to real property is called:

A) title insurance.
B) a warranty deed.
C) guarantee insurance.
D) a real estate guarantee.

Question 76

Ellen's driveway is actually on Richard's land, but in 20 years nobody has ever said anything to Ellen about it. When Richard sells his house, a survey shows the problem and the new owner demands that Ellen abandons use of the driveway. Will she have to move her driveway?

A) Yes, if she does not actually own the land.
B) Yes, since it is not in her deed.
C) Not if she used it continuously.
D) Not if she got permission from Richard.

Question 77

In a notice-race state:

A) an unrecorded deed is invalid against any subsequent purchaser without notice of who recorded first.
B) unrecorded deeds are invalid against any subsequent purchaser without notice.
C) an unrecorded deed is invalid against any deed recorded before it.
D) a recorded deed is invalid against a subsequent purchaser who records.

Question 78

Deeds generally end with:

A) the grantor's signature.
B) a seal.
C) an acknowledgment before a notary public to verify the authenticity of the document.
D) All of these.

Question 79

Which is not true about zoning ordinance variances:

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.

Question 80

The doctrine declaring that the mortgagee's interest in the property is limited to the amount of the outstanding obligation is known as:

A) adverse possession.
B) the title theory.
C) the lien theory.
D) equity of redemption.