Deck 49: Transfer and Control of Real Property

Question 1

Giving a deed to an escrow agent may be sufficient delivery of a deed.

Answer 1

True

Question 2

Foreclosure is the mortgagee's right to sell the property to satisfy the debt.

Answer 2

True

Question 3

Harper and her child are seeking an apartment.Harper is not married and never has been.Grant owns an apartment complex with 8 units ready to rent.Grant may legally refuse to rent to Harper on the basis that she is a single,unwed mother.

Answer 3

False

Question 4

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

Question 5

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

Question 6

If there is a defect in title,the courts will allow the buyer to refuse to go through with the purchase.

Question 7

Foreclosure may be exercised only by sale under judicial decree.

Question 8

When the power of eminent domain is exercised,the owners must be given the fair market value of the property as of the time of the taking.

Question 9

Most states have adopted the theory that a mortgage is a lien on real property for the payment of a debt.

Question 10

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

Question 11

Provisions of general contract law govern the sale of real property.

Question 12

If Caleb'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.

Question 13

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

Question 14

A majority of jurisdictions follow the common law rule that the risk of loss or destruction of real property rests with the seller until the deed is conveyed to the purchaser.

Question 15

A minority of states have adopted the common law lien theory of mortgages which gives the mortgagor the right of ownership and possession.

Question 16

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

Question 17

If Carletta buys a house with 2 acres of land subject to an existing mortgage,she will have to pay the mortgage if the mortgagor does not.

Question 18

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

Question 19

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

Question 20

A restrictive covenant can bind only the original parties to it.

Question 21

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

Question 22

A variance may be granted to permit deviation from a zoning ordinance where the application of the ordinance to specific property would cause its owner particular hardship unique to the property.

Question 23

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

Question 24

A title search guarantees rightful ownership.

Question 25

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

Question 26

The Fair Housing Act exemptions do not apply to discrimination based on race or color.

Question 27

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 28

Title insurance is made unnecessary by performance of a title search.

Question 29

The debtor who grants a mortgage is the mortgagee.

Question 30

A special warranty deed limits the warranty given out by the grantor to acts or omissions of the grantor.

Question 31

The Mortgage Reform and Anti-Predatory Lending Act of 2010 modifies the Sarbanes-Oxley Act by making those who obtain mortgages more accountable for their actions.

Question 32

If a zoning restriction causes a financial loss to a property owner,this amounts to a taking of property and the local government will have to compensate the landowner for his loss.

Question 33

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

Question 34

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 on the premises.
D) All of these.

Question 35

Drew grants a quitclaim deed to some property to Franco,but Elli has a life estate in the land.Drew has breached the warranty of title to Franco.

Question 36

Recording of a deed is necessary to pass title from the grantor to the grantee.

Question 37

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

Question 38

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

Question 39

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

Question 40

A mortgagee cannot assign a mortgage without the consent of the mortgagor.

Question 41

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

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 42

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

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 43

A zoning ordinance may be challenged in the court by proving:

A) it bears no reasonable relation to public health,safety,morals,or welfare.
B) it involves the exercise of powers not granted to the municipality by the enabling act.
C) the restriction deprives a person of all use of the property.
D) Any of these.

Question 44

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

A) the fair market value of the property.
B) equivalent property.
C) the option of keeping the property.
D) his asking price for the property,which can be up to 20% more than he paid for it.

Question 45

The characteristics of a special warranty deed include:

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 46

The power to zone is generally given to:

A) states by the state constitutions.
B) states by adverse possession statutes.
C) local authorities by enabling statutes.
D) local authorities by master plans adopted by the states.

Question 47

A chronological report of recorded transfers and encumbrances to the property can be obtained by a(n):

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

Question 48

The process of conveyance of a deed is called the:

A) zoning meeting.
B) closing.
C) title search.
D) recordation.

Question 49

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

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

Question 50

In order for a deed to be effective,it must contain all of the following except:

A) a description of the land.
B) a description of the consideration.
C) the signature of the grantor.
D) language conveying title.

Question 51

Eminent domain would permit condemnation of land for all the following purposes except:

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

Question 52

In a quitclaim deed,the grantor warrants that:

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 53

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?

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 54

Most zoning ordinances provide that a previously approved 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) when the structure is sold.

Question 55

A buyer's remedies for breach of a contract for the sale of land include all but which of the following:

A) rescission and restitution.
B) damages for loss of the bargain.
C) specific performance with a price reduction.
D) All of these remedies are available.

Question 56

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 of past due installments.

Question 57

Alice purchases Bob's house and in so doing assumes the mortgage.Which of the following is/are true?

A) Only Alice is personally liable to pay the mortgage.
B) Bob and Alice are both personally liable to pay the mortgage.
C) Only Bob is liable to pay the mortgage.
D) Bob is only liable if Alice defaults.

Question 58

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 59

The covenant of title made by a grantor in a deed is also known as the covenant of:

A) seisen.
B) quiet enjoyment.
C) no encumbrances.
D) undisturbed possession.

Question 60

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

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

Question 61

The elements of adverse possession include:

A) open,constructive,and with permission of the true owner.
B) open,visible,under color of title,and with permission of the true owner.
C) secretive,invisible,hostile,and under claim of right.
D) continuous for the statutory period,open,actual,and adverse.

Question 62

Marian lives in a "notice-race" state.She buys Blackacre from Robin but fails to record her deed.Robin then sells Blackacre to John,who also forgets to record.If Marian realizes her mistake and then records the deed,who will own title to the land?

A) John,since he had no notice.
B) John,since he purchased in good faith.
C) Marian,because she was first to file.
D) Marian,because she bought the property first.

Question 63

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 64

Which of the following is not true regarding the warranty of habitability?

A) It is an implied warranty.
B) A majority of states hold that a builder-seller impliedly warrants a newly constructed house to be free of latent defects.
C) In the majority of states,the buyer must inspect the property thoroughly before completing the sale,as any defect discovered only after the transaction is complete would not be the seller's responsibility.
D) Many jurisdictions now require all sellers to disclose hidden defects that materially affect the property's value and that would remain undetected following a reasonable examination.

Question 65

Zoning ordinance variances:

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 66

Ellen's driveway is actually on Richard's land,but Ellen has used it for 20 years with no complaint from Richard.When Richard sells his house,a survey shows the problem and the new owner demands that Ellen abandon use of the driveway.Will she have to move her driveway?

A) Yes,since Richard is selling the land that the driveway is on
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 67

Stan has agreed to sell a warehouse to Ed for $150,000.The contract says that Stan will convey to Ed whatever interest he has in the property,but does not state that he has any interest.Ed is to receive a(n)____ deed.

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

Question 68

A buyer of real estate subject to a mortgage who does not undertake any personal liability for payment of the mortgage debt:

A) takes the property "subject to" the mortgage.
B) "assumes" the mortgage.
C) can only obtain a quitclaim deed.
D) can only obtain a leasehold.

Question 69

A doctrine allowing a mortgagor who has defaulted to regain her property prior to its sale by paying the debt in full with interest is known as:

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

Question 70

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.

Question 71

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

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 72

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

A) A requirement that all buildings be of a certain style
B) A requirement that all homes contain a double garage
C) An agreement not to sell to anyone of Hispanic descent
D) An agreement requiring a minimum size for homes

Question 73

Which of the following is INCORRECT regarding zoning?

A) Zoning can be used to regulate private property,but not to "take" it.
B) A variance permits an otherwise impermissible use of the property.
C) A zoning ordinance needs no reasonable relationship to public health,safety,or morals to be upheld.
D) A nonconforming use may be permitted where property was so used prior to adoption of the zoning ordinance.

Question 74

Debra buys land from Oscar,relying upon a mortgage release executed and recorded by the mortgagee,Keith.Keith,however,had previously assigned the mortgage to Andrew who failed to have the assignment recorded.In this case,Andrew has:

A) no claim against the property in the absence of Debra's actual knowledge of the assignment by Keith.
B) no claim against the property because a mortgagee has no right to assign the mortgage to another person.
C) a claim against the property because the assignment to him took place before Debra's purchase of the land.
D) a claim against the property because recording is not necessary to the effectiveness of a mortgage assignment.

Question 75

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 76

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

A) Encumbrances
B) Defects in the chain of title appearing in the land records
C) Events depriving the seller of title
D) All of these.

Question 77

Which of the following may transfer title to land?

A) Deed
B) Will,or by the law of descent upon the death of the owner
C) Open,continuous,and adverse possession by a nonowner for a statutorily prescribed period of years
D) All of these.

Question 78

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 satisfy the debt is known as:

A) foreclosure.
B) equity of redemption.
C) adverse possession.
D) an executed deed of trust.

Question 79

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(n):

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

Question 80

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.