Deck 49: Transfer and Control of Real Property

Question 1

A mortgage creates a security interest in real property.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

The transfer of real estate requires consideration to be valid.

Question 7

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.

Question 8

If Connie buys real estate subject to an existing mortgage,she will have to pay the mortgage if the mortgagor does not.

Question 9

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

Question 10

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

Question 11

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

Question 12

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 13

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

Question 14

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

Question 15

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

Question 16

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 17

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

Question 18

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

Question 19

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 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

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 30

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 31

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

Question 32

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

Question 33

There are four major types of deeds.

Question 34

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 35

Title insurance is unnecessary if a title search is made.

Question 36

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

Question 37

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 38

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

Question 39

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 40

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

Question 41

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 42

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

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

Question 43

Adverse possession,requires no:

A)contract.
B)deed.
C)formality.
D)None of the above.
E)(a), (b), and (c) are correct.

Question 44

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 the above.

Question 45

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 46

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 47

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 the above.

Question 48

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 49

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

Question 50

Jesse purchases Erica's house and in so doing assumes the mortgage.Which of the following is true?

A)Jesse is personally liable to pay the mortgage.
B)Erica is personally liable to pay the mortgage.
C)Erica is no longer liable to pay the mortgage.
D)Both (a) and (b).
E)Both (a) and (c).

Question 51

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 52

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 the above.
E)None of the above.

Question 53

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)All of the above.

Question 54

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 as of the time of the taking.
B)equivalent property.
C)the option of keeping the property.
D)his price for the property.

Question 55

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 the above.

Question 56

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)None of the above.
E)(a), (b), and (c) are correct.

Question 57

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)All of the above.
E)Both (a) and (b) above are correct.

Question 58

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 59

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 60

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

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

Question 61

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 62

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 63

Zoning ordinance variances:

A)are not available for hardships caused by the actions of the property owner seeking the variance.
B)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)are available for hardships caused by the variance that are common to the zoned area.
D)Both (a) and (b).
E)Both (a) and (c).

Question 64

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 65

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

A)A requirement that all buildings are of a certain style.
B)A requirement that all homes contain a double garage.
C)An agreement not to sell to African-Americans.
D)An agreement requiring a minimum size for homes.

Question 66

Jack lived in a block with two-family homes.He finished his third floor for his family and when his children left home,he wanted to rent the floor as an apartment.The town enacted a zoning ordinance restricting occupancy of the building to a maximum of two unrelated families.Jack's best argument for waiving the ordinance is:

A)he can make more money renting two floors.
B)he cannot meet the costs of maintaining the building unless he rents both floors.
C)he is not going to add any more occupants to the building.
D)he was using the third floor as an apartment for rent before the zoning ordinance was enacted.

Question 67

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 68

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 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

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 71

Which of the following is INCORRECT regarding zoning?

A)Zoning restrictions can be used to regulate, but not to take, private property.
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 72

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 73

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 74

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 75

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 76

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 the above.
E)None of the above.

Question 77

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 78

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 79

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 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.