Easements can be terminated by:
1. The purpose of the easement no longer exists. (a new road is built, etc.)
2. The holder of the easement abandons it for the statutory time period.
3. A merger of the properties occurs so an easement is not needed.
4. Destruction of the property or the
An instrument that records the history of the property is called
The Abstract of Title
A person died intestate. His property would pass according to
Decent and Distribution
Another name for a Lender Policy is
Mortgagee's policy. Protects the lender as a condition of obtaining the loan.
The way to determine the identity of a property
is called a legal description
How should a legal description be written?
so that "a reasonably competent surveyor could find it.
What is the starting point in a Metes and Bounds description?
point of beginning (POB)
Metes and Bounds
One method of "legal description". The oldest of all the measuring systems used in the United States. It relies on monuments and point of beginning POB. Degrees are compass headings, based on a 360� circle.
3 forms of legal descriptions
-Metes and bounds
-Rectangular Government survey
-Lot and Block number on a plat map
Rectangular Government Survey
A form of "legal description"
Arranged in a series of grids. Principal Meridians run North and South and Base lines run East and West.
How many square miles is a township?
36 square miles
How many acres are in a section?
640
How many miles long and how many miles wide is a section?
A section is 1 mile wide and 1 mile long
How many feet in a mile?
5,280 feet
How many acres would 1/4 section be?
The amount of land would be 1/4 of 640 acres= 160 acres. (.25*640=160)
Plat Map
legal descriptions in residential lots of less than 1 acre.
bench marks
a short cut surveyors use to speed up the surveying process. The bench mark is a permanent brass plate, placed in the ground and it notates the feet above sea level at that location.
Datum
is the level plain which is used by the bench mark to determine elevation and from which surveyors measuring begins.
1 square yard =
9 square feet
1 cubic yard =
27 cubic feet
1 square mile =
640 acres
1 acre =
43,560 square feet.
Area is always expressed in
square feet or square yards
Area of a rectangle is
Area = length x width
Area of a triangle is
Area = 1/2 base x height
Volume is always expressed
in cubic feet or cubic yards
Volume of a rectangle is
Volume = length x width x depth
Volume of a triangular prism is
Volume = 1/2 base x height x depth
What is The Statute of Frauds ?
Old English law to protect consumers from fraud. Says all contracts must be in writing to be enforceable and that all leases for more than one year must be in writing to be enforceable.
What is The Statute of Limitations?
provides a time frame which court cases must be filed on certain offenses. If the Statute of Limitations runs out, the case cannot be heard.
Certain essentials must be present to make a contract valid. These are?
1.Legally Competent parties
2.Offer and Acceptance
3.Consideration
4.Legality of Object
Is an "offer to purchase" a contract?
No. When an offer or counter offer is accepted and the seller and/or buyer is notified of the acceptance, the offer becomes a valid contract.
Earnest Money
Part of the consideration is paid in an earnest money deposit. This is not all of the consideration; it is only a good faith deposit to insure the seller that the buyer will honor his promises and complete the sale.
Equitable Title
The interest a buyer has in a property between the time of acceptance (notification) of the contract and the actual closing. When the transaction closes, the buyer receives legal or actual title to the property.
Actual Title
Is the time when the title actually changes hands- after the delivery and acceptance phase of the deed. All the property rights are now in the hands of the buyer unless otherwise stated in the deed.
Types of Contracts
Bilateral
Unilateral
Expressed
Implied
Executory
Executed
Formal Contract
Informal Contract:
Bilateral Contract
When both parties agree to do something.
Unilateral Contract
When only one person promises to do something, the other person pays the promiser "option money" to be able to hold that person to their promise.
Expressed Contract
Is a contract of certain conditions like, the house must be paid by this date.
Implied Contract
The contract is implied by the person's actions, like getting into a taxi you are implying you will pay the taxi driver
Executory Contract
A contract in progress, something is left to be done, such as the deed being issued.
Executed Contract
Everything is signed done deed
Formal Contract
Everyone's signed it. It's enforceable.
Informal Contract
Usually oral and not enforceable.
Ways an Offer can be Terminated
-An offer is withdrawn by the offeror.
-The time for an offer has passed and the offer is dead.
-The death or insanity of either party.
-A counter offer is given, making the first offer dead.
-The offer is accepted, making it a CONTRACT, instead of an off
Ways a Contract can be terminated:
-Performance: the contract is completed
-Mutual rescission: both parties agree to cancel the contract.
-Impossibility of performance: an earthquake hits the property and both parties agree to rescind the contract.
-Operation of Law: bankruptcy of either p
3 Ways To Sue for Breach of Contract
Suit for Cancellation
Suit for Specific Performance
Suit for Damages
liquidated damages
an amount of monies (usually the earnest money) in payment. If he accepts liquidated damages, he may not sue for Specific Performance. *when the seller is wronged.
Assignment of a contract
is when a third person takes the place of one of the original people in the contract and then all the rights and responsibilities become his
Novation
is a change in the original terms, such as an extension of time for closing or loan commitment. All other terms of the contract remain the same.
Contingency
conditions or terms yet to be performed
Mirror Image
A seller agrees to an offer exactly as it was written. No changes are made to the offer; it is signed by the seller as it was written. It becomes a contract after the buyer is notified of the acceptance.
Counteroffer
A change of terms, usually different terms or dates
Time is of the Essence
means you only have a certain amount of time to do certain things or you'll be in breach of the contract.
Parol Evidence Rule
anything in writing (like the contract) takes precedence over verbal agreements.
Open Listing
The seller retains the right to hire any number of brokers to sell his property. Whoever provides the seller with a ready, willing and able purchaser is entitled to a commission. If the seller sells the property without the broker, he pays no commission.
Exclusive or Exclusive Agency Listing
Only one broker is allowed to act on behalf of the principal but if the owner sells the property himself, no commission is paid to the broker. If the broker sells the property, he will be entitled to a commission. This is a unilateral contract.
Exclusive Right to Sell Contract
In this type of listing, the listing broker is always entitled to a commission regardless of who procures the buyer. It provides the most protection to the broker. If the owner of the property procures the buyer, the owner will be required to pay the list
An exclusive right to sell has been signed. What best describes the type and status of this contract
Bilateral executory
If an offer to purchase real property has been presented to a seller, but not accepted, the offer
may be withdrawn by the buyer at anytime
If the amount realized at foreclosure sale is more than the indebtedness, the excess belongs to?
The mortgagor
Ronald defaulted on his home mortgage payments. The lender obtained a court order to foreclose on the property. At the foreclosure sale, Ronald's house sold for $29.000 and the unpaid balance of his loan is $40,000. What must the lender do to recover the
Seek a deficiency judgement
Foreclosure would terminate:
Equitable right of redemption
Which BEST describes an owner's equity in the property?
The value over and above the outstanding mortgage balance
A promissory note would usually contain each EXCEPT
Physical description of the collateral
An instrument that evidences one person owing another money is a(n)
Note
A clause in a mortgage releasing the indebtedness once the loan is paid off is:
Defeasance
A mortgage which is subordinate to another mortgage is called a:
Junior mortgage
In an installment land contract what type of title did the seller retain until the loan was paid?
Legal
Which form of financing would be the greatest risk to the buyer?
Installment land contract mortgage
Which mortgage allows a person to buy a home with no money down?
VA
a developer would MOST likely obtain which type of mortgage on a new subdivision?
blanket mortgage
buyer Carr went to get a FHA loan because rates were significantly below the current market rate for conventional loans. The loan requires 3 discount points bc it is below market rates. Which best describes this situation?
Points can be charged to either the buyer or the seller.
the amount of a loan expressed as a percentage of the value of the real estate offered as security is:
loan to value ratio
a man had a loan for $60,000 and he had to pay 2.5 points. How much would he have to pay in cash?
$1,500
In an FHA loan points equal?
1% of the loan amount
In making a home mortgage loan, a lender would consider all EXCEPT:
Financial need of the borrower.
A final payment of a mortgage loan that is considerably larger than the other monthly payments bc the loan ws not fully amortized is called:
Balloon mortgage
The basic difference between an FHA and a VA loan is:
FHA insures loans, VA guarantees them.
For a veteran to obtain a VA loan, the VA must issue a certificate of
eligibility
a veteran had a VA loan using his full entitlement. He allows another veteran to assume the loan without VA approval. Could he immediately get another VA loan?
No. He is still liable for the loan
The primary distinction(s) between the primary and secondary mortgage market is:
The secondary market is fundamentally a holding or warehousing process
Which is NOT an agency that deals (buys loans) in the secondary market?
Federal Housing Administration
What kind of a loan would be fully paid out over the life of the loan?
Fully amortized
_________ mission is to increase home ownership, support community development, and increase access to affordable housing free from discrimination.
HUD's
The VA benefit from the department of Veteran's Affairs for a veteran approved home loan guarantees that:
the loan, or a portion of it, made by an approved lending institution will be paid.
The organizations's public mission and defining goal is to help more families achieve the American Dream of homeownership:
Federal National Mortgage Association.
________ guaranty allows mortgage lenders to obtain a better price for their mortgage loans available
Government National Mortgage Association (GNMA)
The Department of Housing and Urban Development (HUD) was created to:
to stabilize the nation's morgage markets and expand opportunities for home ownership and affordable rental housing.
The Equal Credit Opportunity Act (ECOA)
ensures that all consumers are given an equal chance to obtain credit. This doesn't mean all consumers who apply for credit get it; factors such as income, expenses, debt, and credit history are considerations for creditworthiness.
Property management and real estate asset
management are both real estate management
professions. The primary distinction between the
two is that
property managers handle day-to-day operations
while asset managers manage portfolios of
properties
People in the real estate business who primarily
focus on creating new properties are
developers
The term "commercial property" generally refers to
retail, office and industrial properties
Which of the following professionals involved in the
real estate business are most concerned about
procuring buyers and sellers for clients?
Brokers and agents
Which of the following ways of specializing is
common in the real estate brokerage business?
By geography
What is an advisory service provider
A broker who renders real estate services for a fee
The level of government which is most active in
regulating real estate licensees is the
state government
In which of the following cases would a person
probably be required to have a real estate license?
a. As a favor, John Smith helps his sister locate an
apartment, since he knows the area.
b. Mary performs secretarial duties for her boss, a
real estate inv
c. Bruce gets hired to find an office suite for a friend
who is relocating her business.
A license applicant signs up to take the state
examination, but has failed to obtain an employer
prior to the exam date. In this case, the applicant
may take the exam and receive an inactive license
A broker operates an office in a town on the state
line. A buyer from the adjoining state wants to see
homes on both sides of the border. In this case, the
broker
a. may operate in both states since the market's
boundaries overlap state lines.
b. may not
b. may not show the buyer homes in the other state
without a non-resident license.
A principal role of the real estate commission is to
administer state licensing requirements
License regulators, empowered by state law to
oversee brokerage practices, may
take punitive actions against fraud or
misrepresentation
A broker has her license suspended for violating state
license law. In such a case, the licenses of her three
salespeople are
not valid.
The purpose of a recovery fund is to
ensure that judgments against licensees will be
collectible.
The purpose of the closing event is to
exchange legal title for the sale price
A buyer's financing arrangements are often
concluded at closing, because
the lender wants to ensure proper handling of the
collateral for the loan.
According to the Real Estate Settlement and
Procedures Act, a uniform settlement statement must
be used whenever
the loan is to be sold to the FNMA.
A sale contract stipulates that a buyer is to pay the
seller's title insurance expenses. This practice is not
customary in the area. In this case,
the buyer must pay the expense
A prorated expense on the settlement statement is
a debit to one party and a credit to the other
The amount a buyer owes at closing is equal to
the excess of the buyer's debits over the buyer's
credits.
Which of the following are examples of closing items
not prorated between buyer and seller?
Title insurance and inspection fees
Which of the following items are paid in arrears
a. Taxes and insurance
b. Rents and interest
c. Taxes and interest
d. Rents and insurance
Taxes and interest
Which of the following items are paid in advance?
a. Taxes and insurance
b. Rents and interest
c. Insurance and interest
d. Rents and insurance
rents and interest
If a sale contract indicates that the day of closing is
"the seller's day," this means that
the seller must pay prorated expenses inclusive of
the day of closing.
Documentary stamps are used to
document the payment of a transfer tax.
What is the Internal Revenue Service's Form 1099-S?
A form that summarizes and reports transaction data
from a closing
Price is best described as
the amount of money a buyer and seller agree to
exchange to complete a transaction
Four principal determinants of value underlying the
price for a product are
desire, utility, scarcity, and purchasing power
A town has a rapidly growing population, but there
are no longer any vacant lots around the lake to build
more houses. In this case, it is likely that the price of
existing homes on the lake
will increase
If there is a significant undersupply of homes in a
market, construction will tend to increase. This is an
example of
the market tending toward equilibrium
If commercial real estate rental prices are falling in a
market, it is likely that
the market is over-supplied
Which of the following is an important economic
characteristic of real estate?
The demand must literally come to the supply
The foremost factor contributing to commercial and
residential demand in a market is
base employment
A construction boom in a market is an indication that
prices
have been increasing
A local government could stimulate the real estate
market by
expanding the sewer system
Two important concerns of retail property users are
trade area population and spending patterns
Two important concerns of office property users are
costs of occupancy and building efficiency
What guarantees the right of private ownership of
real estate in the United States?
The Constitution
Which of the following is the best definition of real
estate?
Land and everything permanently attached to it
Which of the following is included in the legal
concept of land?
The surface of the earth and all natural things
permanently attached to the earth
What are the three unique physical characteristics of
land?
Immobile, indestructible, heterogeneous
The primary distinction between the legal concepts of
land and real estate is that
land does not include man-made structures
The primary distinction between the legal concepts of
real estate and real property is that
real property includes ownership of a bundle of
rights.
Which of the following is included in the bundle of
rights inherent in ownership?
to transfer
Which of the following is an example of intangible
property?
a. Real estate
b. Personal property
c. Artwork
d. Stock
Stock
The right to use real property is limited by
a. the right of others to use and enjoy their property.
b. the police.
c. taxation and subordination.
d. Title 12 of the U.S. Civil Code.
the right of others to use and enjoy their property
Surface rights, air rights and subsurface rights are
a. inviolable.
b. unrelated.
c. separable.
d. not transferrable.
separable
Which of the following terms refers to the rights of a
property that abuts a stream or river?
a. Allodial
b. Alluvial
c. Littoral
d. Riparian
Riparian
What part of a non-navigable waterway does the
owner of an abutting property own?
a. To the low-water mark
b. To the middle of the waterway
c. To the high-water mark
d. None
To the middle of the waterway
What is the "Doctrine of Prior Appropriation?"
a. A pre-emptive zoning ordinance
b. The right of government to confiscate land and
improvements
c. A doctrine that gives the state control of water use
and the water supply
d. A real estate tax applied to ow
A doctrine that gives the state control of water use
and the water supply
Which of the following is considered real property?
a. A tree growing on a parcel of land
b. A tree that has been cut down and is lying on a
parcel of land
c. A tractor used to mow grass on a parcel of land
d. A prefabricated shed not yet assembled on a
p
A tree growing on a parcel of land
The overriding test of whether an item is a fixture or
personal property is
a. how long it has been attached to the real property.
b. its definition as one or the other in a sale or lease
contract.
c. how essential it is to the functioning of the
property
its definition as one or the other in a sale or lease
contract
What is an emblement?
a. A piece of equipment affixed to the earth
b. A limited right to use personal property
c. A sign indicating a property boundary
d. A plant or crop that is considered personal
property
A plant or crop that is considered personal property
An item can be converted from real to personal
property and vice versa by means of which
processes?
a. Assemblage and plottage
b. Application and dissolution
c. Affixing and severance
d. Personalty and severalty
Affixing and severance
The major sources of real estate law are legislation at
federal, state and local level, and
a. court decisions.
b. professional real estate associations.
c. real estate commissions.
d. local practices.
court decisions
What is the primary thrust of federal involvement in
real estate law?
Broad regulation of usage
Which level of government controls zoning laws?
County and local
A grocer temporarily installs special fruit and
vegetable coolers in a leased grocery store in order to
prevent spoilage. The coolers would be considered
which of the following?
a. Trade fixtures that are real property
b. Trade fixtures that are personal
Trade fixtures that are personal property
Under the doctrine of littoral rights, an owner claims
ownership of all of the land underlying a lake where
there are three other abutting property owners.
Which of the following is true?
a. The owner's claim is invalid, because the state
owns the underly
The owner's claim is invalid, because the state owns
the underlying land
An interest in real estate is best defined as ownership
of
a. the full bundle of rights to real property.
b. an estate.
c. one or more of the bundle of rights to real
property.
d. the right to possession and use of real property
one or more of the bundle of rights to real property.
Encumbrances and police powers are
a. interests that do not include possession.
b. limited forms of an estate.
c. unrelated to interests.
d. types of public interests.
interests that do not include possession
What distinguishes a freehold estate from a leasehold
estate?
a. A freehold includes the right to dispose or use.
b. A leasehold endures only for a specific period of
time.
c. A freehold cannot be defeasible.
d. A leasehold is subject to government restri
A leasehold endures only for a specific period of
time.
The highest form of ownership interest one can
acquire in real estate is the
a. dower and curtesy.
b. conventional life estate.
c. defeasible fee simple estate.
d. absolute fee simple estate.
absolute fee simple estate
The distinguishing feature of a defeasible fee simple
estate is that
a. it can be passed on to heirs.
b. it has no restrictions on use.
c. the estate may revert to a grantor or heirs if the
prescribed use changes.
d. it is of unlimited duration.
the estate may revert to a grantor or heirs if the
prescribed use changes
Upon the death of the owner, a life estate passes to
a. the original owner or other named person.
b. the owner's heirs.
c. the state.
d. the owner's spouse.
the original owner or other named person
How is a conventional life estate created?
a. It happens automatically when title transfers
unless a fee simple is specifically claimed.
b. A fee simple owner grants the life estate to a life
tenant.
c. It is created by judicial action.
d. It is created b
A fee simple owner grants the life estate to a life
tenant.
What distinguishes a pur autre vie life estate from an
ordinary life estate?
a. The pur autre vie estate endures only for the
lifetime of the grantor.
b. The pur autre vie estate endures only for the
lifetime of the grantee.
c. The pur autre vie estate en
The pur autre vie estate endures only for the lifetime
of a person other than the grantee.
Which of the following life estates is created by
someone other than the owner?
a. Conventional life estate
b. Ordinary life estate
c. Legal life estate
d. Community property life estate.
Legal life estate
Which of the following is true of a homestead?
a. A homestead interest cannot be conveyed by one
spouse.
b. A homestead interest cannot be passed to the
children of the head of household.
c. A homestead interest is a form of conventional
life estate.
d. A
a. A homestead interest cannot be conveyed by one
spouse.
Dower refers to
a. joint tenancy of husband and wife.
b. a wife's life estate interest in her husband's
property.
c. a wife's homestead interest.
d. a child's life estate interest in his or her parents'
homestead.
a wife's life estate interest in her husband's property
Which of the following is an illustration of the legal
concept of elective share?
a. A surviving spouse places a lien on a debtor's
property.
b. A widow who was excluded from a will makes a
claim to a portion of the couple's principal
residence.
c. A spou
A widow who was excluded from a will makes a
claim to a portion of the couple's principal
residence
A one-year lease on a house has expired, but the
tenant continues sending monthly rent checks to the
owner, and the owner accepts them. What kind of
leasehold estate exists?
a. Estate for years
b. Estate from period to period
c. Estate at will
d. Estate a
Estate from period to period
1. When a single individual or entity owns a fee or life
estate in a real property, the type of ownership is
a. tenancy in severalty.
b. tenancy by the entireties.
c. absolute fee simple.
d. legal fee simple.
tenancy in severalty
Three people have identical rights but unequal shares
in a property, share an indivisible interest, and may
sell or transfer their interest without consent of the
others. This type of ownership is
a. joint tenancy.
b. equal ownership.
c. tenancy in common
tenancy in common
The "four unities" required to create a joint tenancy
include which of the following conditions?
a. Parties must acquire respective interests at the
same time.
b. Parties must be legally married at the time of
acquiring interest.
c. Parties must be family
Parties must acquire respective interests at the same
time.
Unlike tenants in common, joint tenants
a. own distinct portions of the physical property.
b. cannot will their interest to a party outside the
tenancy.
c. may own unequal shares of the property.
d. cannot sell their interest to outside parties.
cannot will their interest to a party outside the
tenancy.
In a community property state, a basic distinction is
made between
a. property acquired together and property acquired
separately over the duration of the marriage.
b. property owned privately versus property owned
by the state.
c. property acquired durin
property acquired during a marriage and property
already owned by each party at the time of marriage.
Who are the essential parties involved in an estate in
trust?
a. Owner, trustor and lawyer
b. Owner, trustor and trustee
c. Trustee, title company, and beneficiary
d. Trustor, trustee and beneficiary
Trustor, trustee and beneficiary
The distinguishing features of a condominium estate
are
a. ownership of a share in an association that owns
one's apartment.
b. tenancy in common interest in airspace and
common areas of the property.
c. fee simple ownership of the airspace in a unit and
fee simple ownership of the airspace in a unit and an
undivided share of the entire property's common
areas.
8. Who owns the property in a time-share estate?
a. Ownership is shared by the developer and the
broker.
b. The property is owned by tenants in common or
by a freehold owner who leases on a time-share
basis.
c. A real estate investment trust holds a fee s
The property is owned by tenants in common or by a
freehold owner who leases on a time-share basis.
9. Which of the following is true of a cooperative?
a. A cooperative may hold an owner liable for the
unpaid operating expenses of other owners.
b. The owners have a fee simple interest in the
airspace of their respective apartments.
c. Owners may retain
A cooperative may hold an owner liable for the
unpaid operating expenses of other owners
10. One difference between a cooperative estate and a condominium estate is that
a. a default by a coop owner may cause a
foreclosure on the entire property instead of just a
single unit, as with a condominium.
b. the condominium owner must pay expenses a
a default by a coop owner may cause a foreclosure
on the entire property instead of just a single unit, as
with a condominium.
A unique feature of a land trust is that
a. the trustee controls both the trustor and the
beneficiary.
b. the trustee takes ownership of both land and
improvements.
c. the identity of the beneficiary may not be
identified.
d. the properties in the trust a
the identity of the beneficiary may not be identified.
Easements and encroachments are types of
a. lien.
b. deed restriction.
c. encumbrance.
d. appurtenance.
encumbrance
An affirmative easement gives the benefited party
a. the right to possess a defined portion of another's
real property.
b. the right to prevent the owner of a real property
from using it in a defined way.
c. the right to a defined use of a portion of anot
the right to a defined use of a portion of another's
real property
There are two adjoining properties. An easement
allows property A to use the access road that belongs
to property B. In this situation, property A is said to
be which of the following in relation to property B?
a. Subservient estate
b. Servient estate
c.
Dominant tenement
Which of the following describes a situation in which
an easement might be created against the wishes of
the property owner?
a. The property has been continuously used as an
easement with the knowledge but without the
permission of the owner for a period
The property has been continuously used as an
easement with the knowledge but without the
permission of the owner for a period of time.
5. What is the primary danger of allowing an
encroachment?
a. An encroachment automatically grants the
benefiting party an easement.
b. The encroached party may be liable for additional
real estate taxes to cover the area being
encroached upon by the neig
Over time, the encroachment may become an
easement by prescription that damages the property's
market value.
A property owner who is selling her land wants to
control how it is used in the future. She might
accomplish her aim by means of
a. an injunction.
b. a deed restriction.
c. an easement.
d. a land trust.
a deed restriction
What distinguishes a lien from other types of
encumbrance?
a. It involves a monetary claim against the value of a
property.
b. It lowers the value of a property.
c. It is created voluntarily by the property owner.
d. It attaches to the property rather tha
It involves a monetary claim against the value of a
property.
8. A certain property has the following liens recorded
against it: a mortgage lien dating from three years
ago; a mechanic's lien dating from two years ago; a
real estate tax lien for the current year; and a second
mortgage lien dating from the current ye
Real estate tax lien
9. The lien priority of junior liens can be changed by a
lienor's agreement to
a. forgive portions of the debt.
b. assign the note.
c. foreclose on the note.
d. subordinate.
subordinate
Among junior liens, the order of priority is generally
established according to
a. the date of recordation.
b. the amount.
c. the order of disbursement.
d. special agreement among lienees.
the date of recordation
What is meant by a "lien-theory" state?
a. A state in which liens are given priority over
other encumbrances
b. A state in which a mortgagor retains title to the
property when a mortgage lien is created
c. A state in which the holder of a mortgage lien
re
A state in which a mortgagor retains title to the
property when a mortgage lien is created
A homeowner has hired a contractor to build a room
addition. The work has been completed and the
contractor has been paid for all work and materials
but fails to pay the lumber yard for a load of lumber.
What potential problem may the home owner
experienc
The lumber yard may place a mechanic's lien for the
amount of the lumber against the homeowner's real
property.
The process of enforcing a lien by forcing sale of the
lienee's property is called
a. execution.
b. attachment.
c. foreclosure.
d. subordination.
foreclosure
An important difference between a judicial
foreclosure and a non-judicial foreclosure is
a. there is no right to redeem the property in a nonjudicial foreclosure.
b. a judicial foreclosure forces a sale of the property.
c. a non-judicial foreclosure ensur
there is no right to redeem the property in a nonjudicial
foreclosure
A defaulting borrower may avoid foreclosure by
giving the mortgagee
a. a promissory note.
b. a deed in lieu of foreclosure.
c. a redemption notice.
d. a lis pendens.
a deed in lieu of foreclosure
A property survey reveals that a new driveway
extends one foot onto a neighbor's property. This is
an example of
a. a easement appurtenant.
b. an encroachment.
c. an easement by prescription.
d. a party wall easement.
an encroachment
A property owner has an easement appurtenant on
her property. When the property is sold to another
party, the easement
a. terminates.
b. transfers with the property.
c. transfers with the owner to a new property.
d. becomes a lien on the property.
transfers with the property
A brick fence straddles the property line of two
neighbors. The neighbors agree not to damage it in
any way. This is an example of
a. a party wall.
b. an encroachment.
c. a trade fixture.
d. a deed restriction.
a party wall
A property owner allows Betty Luanne to cross his
property as a shortcut to her kindergarten school bus.
One day the property owner dies. What right was
Betty given, and what happens to it in the future?
A license, which terminates at the owner's death
A court renders a judgment which authorizes a lien to
be placed against the defendant's house, car, and
personal belongings. This is an example of a
a. specific judgment lien.
b. general judgment lien.
c. voluntary judgment lien.
d. superior judgment lien
general judgment lien
1. Which of the following best describes the concept of "legal title" to real estate?"
a. Ownership of the bundle of rights to real estate
b. The right of a buyer or lender to obtain ownership
under certain circumstances
c. Possession of a deed
d. Absolut
Ownership of the bundle of rights to real estate
A person claims ownership of a parcel of real estate
to a prospective buyer, stating that she has lived on
the property for five years and nobody has ever
bothered her. The claimant also shows the buyer a
copy of the deed. The legal basis of this claim is
actual notice
Constructive notice of ownership of a parcel of real
estate is primarily demonstrated through
a. direct inspection to see who is in possession.
b. title insurance.
c. title records.
d. a construction permit.
title records
An owner transfers title to a property to a buyer in
exchange for a consideration. This is an example of
a. voluntary alienation.
b. escheat.
c. hypothecation.
d. estoppel.
voluntary alienation
For a deed to convey title, it is necessary for the deed
to be
a. on a standard form.
b. certified by the grantor.
c. accepted by the grantee.
d. signed by the grantee
accepted by the grantee
The only required clause in a deed of conveyance is
one that
a. states restrictions and limitations to the estate
being conveyed.
b. states the parties and the type of estate being
conveyed.
c. states that the grantor has done nothing to impair
title to t
states the grantor's intention, names the parties,
describes the property, and indicates a consideration
The purpose of a covenant clause in a deed of
conveyance is to
a. state the grantor's assurance or warrant to the
grantee that a certain condition or fact concerning
the property is true.
b. state the grantee's promise to use the property in a
prescribed
state the grantor's assurance or warrant to the grantee
that a certain condition or fact concerning the
property is true.
The type of statutory deed that contains the most
complete protection for the grantee is a
a. guardian's deed.
b. special warranty deed.
c. general warranty deed.
d. quitclaim deed.
general warranty deed.
A person wishes to convey any and all interests in a
property to another without making any assurances as to encumbrances, liens, or any other title defects on the property. This party would most likely use which of the following types of deed?
A quitclaim deed
A one-time tax levied on a property for purposes of
recording a transaction is called
a. an intangible sales tax.
b. a documentary stamp tax.
c. an ad valorem tax.
d. a franchise tax.
a documentary stamp tax
If a person dies with no legal heirs or relations and
has left no valid will, what happens to real property
owned by that person?
a. It is taken by the state according to the process
called escheat.
b. It is reconveyed to the previous owner in the chain
o
It is taken by the state according to the process
called escheat
Just prior to passing away, a person tells two
witnesses that she would like her estate to pass to her
husband. One witness records the statement and
signs his name. This is an example of
a. an enforceable holographic will.
b. an unenforceable holographic
an unenforceable nuncupative will
If a person having several heirs dies intestate, the
property will
a. pass to heirs by the laws of descent and
distribution.
b. escheat to the state.
c. pass to the surviving spouse through elective
share.
d. pass to the surviving heirs according to the
p
pass to heirs by the laws of descent and distribution.
A property owner can avert the danger of losing title
by adverse possession by
a. recording proof of ownership in county title
records.
b. inspecting the property and evicting any
trespassers found.
c. claiming hostile and notorious possession.
inspecting the property and evicting any trespassers
found.
A hermit secretly lives in a cave on a 200-acre
property. After twenty years, the person makes a
claim of ownership to the property. This claim will
likely be
a. upheld through adverse possession.
b. upheld because of the length of possession.
c. declined
declined because possession was secretive.
The fundamental purpose of recording instruments
that affect real property is to
a. prove ownership of the property.
b. avoid adverse possession.
c. give constructive notice of one's rights and
interests in the property.
d. assemble all relevant documents
give constructive notice of one's rights and interests
in the property
What is "chain of title?"
a. The list of all parties who have ever owned real
estate.
b. The bundle of rights linked to the recorded title to
a parcel.
c. A chronology of successive owners of record of a
parcel of real estate.
d. Involuntary conveyance of
A chronology of successive owners of record of a
parcel of real estate.
The Torrens System differs from other title recording
systems in that
a. title is conveyed only when conveyance is
registered on the title certificate.
b. the Torrens System requires prior approval of a
transaction before it can be registered.
c. the Torr
title is conveyed only when conveyance is registered
on the title certificate
To be marketable, title must be
a. registered in Torrens.
b. free of undisclosed defects and encumbrances.
c. abstracted by an attorney.
d. guaranteed by a title certificate
free of undisclosed defects and encumbrances
With the exception of a Torrens certificate, the best
evidence of marketable title is
a. a signed deed.
b. a title certificate.
c. title insurance.
d. an attorney's opinion.
title insurance
A lease contract is best described as
a. a temporary transfer of legal title.
b. an instrument of conveyance of limited title.
c. a conveyance of a possessory interest.
d. a title conveyance in exchange for rent.
a conveyance of a possessory interest
When a tenant acquires a leasehold estate through a
lease, what does the property owner acquire?
a. A freehold estate
b. A reduced leasehold estate
c. A leasehold estate
d. A leased fee estate
A leased fee estate
When an owner leases her property, she temporarily
relinquishes the right to
a. transfer the property.
b. encumber the property.
c. occupy the property.
d. maintain the property.
occupy the property
Which of the following happens when a leased
property is sold?
a. The buyer acquires title subject to the lease.
b. The lease is cancelled.
c. The lease expires within thirty days unless
renewed.
d. A new lease is automatically executed.
The buyer acquires title subject to the lease
A landlord and tenant complete a one-year lease. The
following week, the landlord dies. Which of the
following is true?
a. The lease is cancelled and must be re-written.
b. The tenant must continue to abide by all lease
terms.
c. The tenant may annul the
The tenant must continue to abide by all lease terms