Question 1

The elements of adverse possession include:

Accepted Answer

Adverse possession requires continuous possession for a certain period of time (the statutory period), the possession must be open, actual, and hostile to the true owner's interest.

Question 2

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?

Accepted Answer

In a "notice-race" state, the first person to record their deed has priority over any subsequent purchasers, even if the subsequent purchaser had no actual or constructive notice of the prior sale. Since Marian bought Blackacre first and then recorded her deed after realizing her mistake, she would have priority over John's unrecorded deed, regardless of whether he purchased in good faith or not. Therefore, Marian would own the title to the land.

Question 3

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

Accepted Answer

A mortgage is a legal agreement between a lender and borrower in which the borrower pledges real property as collateral for a loan. The mortgage serves as security for the lender, ensuring repayment of the loan. In the event of default, the lender can foreclose on the property and sell it to recoup their losses. A warranty deed is a document that transfers ownership of real property, but does not provide security for a debt. Foreclosure is a legal process used by a lender to repossess and sell a property when the borrower defaults on their loan. A default judgment is a ruling by a court against a defendant who has failed to appear or respond to a lawsuit.

Question 4

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

Accepted Answer

The statement "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" is not true regarding the warranty of habitability. The warranty of habitability places the responsibility on the seller to provide a habitable property and it is not dependent on the buyer's inspection.

Question 5

Zoning ordinance variances:

Accepted Answer

Zoning ordinance variances are available only if it affirmatively appears that the property as zoned cannot yield a reasonable return on the owner's investment in the property. Variances are not available for hardships caused by the actions of the property owner or for hardships that are common to the zoned area.

Question 6

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?

Accepted Answer

Ellen may have acquired an easement by prescription through continuous use of the driveway for 20 years without any complaint from Richard. This means that even if it is not in her deed, she may have a legal right to continue using the driveway, which the new owner cannot just take away.

Question 7

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.

Accepted Answer

Since the contract does not state that Stan has any interest in the property, he cannot provide a general warranty deed or a special warranty deed. The best option for this situation is a quitclaim deed, which simply conveys whatever interest (or lack thereof) the grantor has at the time of the conveyance.

Question 8

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

Accepted Answer

When a buyer purchases real estate subject to a mortgage, they take the property "subject to" the mortgage, which means they are not assuming any personal liability for the repayment of the mortgage debt. The mortgage remains in the original borrower's name, and the lender can foreclose on the property if the mortgage payments are not made. The buyer is not assuming the mortgage, which would require them to take on personal responsibility for the debt, but rather is simply acquiring the property subject to the existing mortgage.

Question 9

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:

Accepted Answer

The right of redemption is a doctrine that allows a mortgagor who has defaulted to regain her property prior to its sale by paying the debt in full with interest. This right can be exercised at any time until the property is sold at a foreclosure sale.

Question 10

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

Accepted Answer

The doctrine that declares that the mortgagee's interest in the property is limited to the amount of the outstanding obligation is known as the lien theory. This means that the mortgagee (lender) has a lien on the property to secure the debt, but the borrower (mortgagor) retains ownership of the property. This is different from the title theory, which holds that the lender holds the title to the property until the debt is repaid, and from adverse possession, which is a legal concept related to acquiring ownership of property through use and occupation. Equity of redemption refers to the borrower's right to redeem the property by paying off the outstanding debt.

Question 11

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

Accepted Answer

Under notice-race statutes, a subsequent purchaser can prevail if he or she takes without actual knowledge of a prior unrecorded conveyance and records the deed first. This means that if the subsequent purchaser records the deed before the prior conveyance is recorded, and he or she had no knowledge of the prior conveyance at the time of purchase, then this subsequent purchaser can prevail over the prior purchaser.

Question 12

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

Accepted Answer

Restrictive covenants cannot be discriminatory and cannot prohibit the sale of the property to a certain race or ethnicity. This would be in violation of fair housing laws. Choices A, B, and D are valid restrictive covenants as they do not discriminate against any protected class and are related to the quality and standards of the property.

Question 13

Which of the following is INCORRECT regarding zoning?

Accepted Answer

A zoning ordinance must have a reasonable relationship to public health, safety, or morals to be upheld. This is known as the "police power" of the government, which allows it to regulate land use for the public good.

Question 14

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:

Accepted Answer

Andrew has no claim against the property because Debra relied on the recorded release by Keith, and Andrew's failure to record the assignment means Debra had no actual knowledge of it.

Question 15

A real estate conveyance is governed by the:

Accepted Answer

A real estate conveyance is a transfer of property ownership from one person to another, and thus falls under the statute of frauds, which requires certain types of contracts, including real estate contracts, to be in writing to be enforceable. The financial decisions of the lender and terms of the mortgage may be relevant to the transaction, but they do not govern the conveyance itself. The law of secured transactions pertains to the creation and enforcement of security interests in personal property, which is not necessarily relevant to a real estate conveyance.

Question 16

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

Accepted Answer

A marketable title means that the title is free from any encumbrances, defects in the chain of title appearing in the land records, and events depriving the seller of title. Therefore, option D is the correct answer.

Question 17

Which of the following may transfer title to land?

Accepted Answer

All three options mentioned (deed, will or the law of descent, and adverse possession) can transfer title to land. A deed is a legally binding document that transfers ownership of real property, a will or the law of descent can transfer title upon the death of the owner, and adverse possession refers to the transfer of property ownership through the continuous and open use of the property by a non-owner for a certain period of time, as specified by state law.

Question 18

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:

Accepted Answer

Foreclosure is the legal process by which the mortgage holder can take possession of the property, terminate the rights of the mortgagor, and sell the property to recover the outstanding debt. It is a remedy available to the mortgage holder when the mortgagor fails to pay the mortgage debt. The process involves a court proceeding in which the property is sold to the highest bidder, and the proceeds are used to satisfy the outstanding debt.

Question 19

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):

Accepted Answer

This transaction is called an escrow, where a neutral third party holds onto the deed or funds until a specific event or condition is met. This is commonly used in real estate transactions to ensure that both parties fulfill their obligations before the deal is finalized. Adverse possession refers to the acquisition of property through open and continuous use without the owner's consent. Foreclosure is the process by which a lender takes possession of a property after the borrower defaults on their mortgage payments. An abstract of title is a summary of the history of ownership and legal issues related to a property.

Question 20

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

Accepted Answer

In order for a deed to be effective between the purchaser and the seller of real estate, it must be delivered to the buyer by the seller with the intent to transfer title. Although having a deed in writing and signed by both parties is important, it is not enough to make the transfer of title effective. The recording of a deed is also important, but it is not necessary for the transfer of title between the parties. The actual sale price is also not necessary for the effectiveness of the deed between the parties.

Quiz 49: Transfer and Control of Real Property