Question 1

Title insurance is unnecessary if a title search is made.

Accepted Answer

While a title search can uncover past and present ownership of a property, it cannot guarantee that there are no hidden defects or undisclosed liens on the title. Title insurance protects against these potential issues and is often required by lenders in order to approve a mortgage.

Question 2

The debtor who grants a mortgage is the mortgagee.

Accepted Answer

The debtor who grants a mortgage is the mortgagor, not the mortgagee. The mortgagee is the party who receives the mortgage loan and to whom the property is pledged as security for repayment.

Question 3

A title search guarantees rightful ownership.

Accepted Answer

A title search only provides information about past ownership and any liens or encumbrances on the property. It does not guarantee rightful ownership.

Question 4

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

Accepted Answer

When someone expressly assumes a mortgage, they are taking on the personal responsibility to pay it. This is different from buying a property subject to a mortgage, where the original borrower remains responsible for the loan.

Question 5

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

Accepted Answer

This means that if there is any ambiguity in the language of the restrictive covenant, the court will interpret it in favor of the party who is being restricted. This is because restrictive covenants are seen as a restraint on trade and are disfavored by the law. Therefore, any ambiguities in their language will be resolved in favor of the party who is seeking to avoid the restriction.

Question 6

The 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

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 7

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

Accepted Answer

Title insurance provides protection to the owner of a property from financial loss due to defects in the title or undisclosed liens or encumbrances. It is typically purchased during the closing process and is a one-time expense.

Question 8

The Fair Housing Act, which is Title VII of the Civil Rights Act, prohibits discrimination based on race and color only.

Accepted Answer

The Fair Housing Act, which is Title VIII of the Civil Rights Act, prohibits discrimination based on race, color, religion, national origin, sex, disability, and familial status.

Question 9

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.

Accepted Answer

A quitclaim deed does not provide any warranties or guarantees about the title to the property. Therefore, if someone else has a life estate in the land, it is not Latosha's responsibility to resolve the issue, and she has not breached any warranty of title.

Question 10

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

Accepted Answer

To run with the land, a restrictive covenant must involve promises that are enforceable under the law of contracts, which means they must be legally binding and enforceable on future owners of the land.

Question 11

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

Accepted Answer

The answer of The usual method of enforcing a restrictive...

Question 12

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

Accepted Answer

This is true. A restrictive covenant can limit the use of a property to residential purposes, meaning that the property can only be used for living purposes and not for commercial or industrial activities.

Question 13

The police power of the state can be used to regulate and take property.

Accepted Answer

The answer of The police power of the state can...

Question 14

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

Accepted Answer

Adverse possession is a legal concept that allows a person to acquire title to property by occupying and using it for a certain period of time. This is a rare but possible way to obtain title to property.

Question 15

A title search does not involve examining prior transfers of and encumbrances to the property.

Accepted Answer

A title search involves examining prior transfers of and encumbrances to the property, in order to determine the current ownership status and any existing liens or other claims against the property.

Question 16

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

Restrictive covenants that discriminate on the basis of race are unconstitutional and unenforceable. The Supreme Court declared such covenants unconstitutional in 1948 in Shelley v. Kraemer.

Question 17

There are three major types of deeds.

Accepted Answer

The three major types of deeds are general warranty deeds, special warranty deeds, and quitclaim deeds.

Question 18

Quiang's mortgage contract contains a provision that default on an installment makes the entire unpaid balance of the debt immediately due, permitting foreclosure.Such a provision is illegal and cannot be enforced.

Accepted Answer

This provision is known as an acceleration clause and is typically included in mortgage contracts. It is legal and often enforced if a borrower defaults on an installment. This clause allows the lender to demand immediate payment of the entire unpaid balance of the debt and can lead to foreclosure if not paid.

Question 19

Lou fails to pay the property taxes on land mortgaged through Forest Bank.Forest's only recourse according to most courts is to foreclose on the property in order to protect its rights.

Accepted Answer

The answer of Lou fails to pay the property taxes...

Question 20

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

Accepted Answer

Title insurance policies can be issued to protect the interests of mortgagees (lenders) and tenants (people who lease or rent the property). This is because these parties have a financial interest in the property and may suffer losses if there are title defects or ownership disputes.

Quiz 50: Transfer and Control of Real Property

Title insurance is unnecessary if a title search is made.

The debtor who grants a mortgage is the mortgagee.

A title search guarantees rightful ownership.

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

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

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

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

The Fair Housing Act, which is Title VII of the Civil Rights Act, prohibits discrimination based on race and color only.

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.

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

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

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

The police power of the state can be used to regulate and take property.

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

A title search does not involve examining prior transfers of and encumbrances to the property.

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.

There are three major types of deeds.

Quiang's mortgage contract contains a provision that default on an installment makes the entire unpaid balance of the debt immediately due, permitting foreclosure.Such a provision is illegal and cannot be enforced.

Lou fails to pay the property taxes on land mortgaged through Forest Bank.Forest's only recourse according to most courts is to foreclose on the property in order to protect its rights.

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