Deck 34: The Transfer of Real Estate by Sale

Question 1

A condominium refers to a form of housing involving two elements of ownership. They are the:

A) dominant tenement and the servient tenement.
B) easement and the tenement.
C) living space and the common space.
D) community property and the separate property.
E) restrictive covenant and eminent domain.

Answer 1

C

Question 2

The agreement between the owner of a real property and a real estate broker is known as the listing agreement.

Answer 2

True

Question 3

A condominium is an arrangement by which several people can own the same property while being entitled to occupy the premises exclusively at different times on a recurring, regular basis.

Answer 3

False

Question 4

The tenant of a cooperative does not own a particular unit, but, rather, a share in the entire building.

Question 5

Which of the following is a sufficient condition for two or more people to hold property as tenants in common?

A) Unity of time
B) Unity of possession
C) Unity of title
D) Unity of interest
E) Unity of purpose

Question 6

Justin and Ahmed own a 46 acre tract of land as joint tenants. Without telling Justin, Ahmed sells his interest to Julia. Julia and Justin the become the joint tenants.

Question 7

Property acquired by a spouse by gift or inheritance or owned before the marriage is known as separate property.

Question 8

A broker is not a general agent with broad authority. Rather, a broker is a special agent with authority only to show the property to potential buyers.

Question 9

The adverse possessor must use the land continuously, not intermittently.

Question 10

Title insurance provides coverage against zoning laws that restrict use of the property or for a government's taking of the property under its power of eminent domain.

Question 11

Jack and Jane could hold a joint tenancy in a piece of land in which Jack holds a life estate and Jane holds a remainder interest.

Question 12

As a buyer of real estate, you would ordinarily want the seller to grant fee simple title by giving you a quitclaim deed.

Question 13

Possession by one co-tenant is deemed permissive as either or all are legally entitled to possession.

Question 14

Ally had just signed the sales agreement to buy Emile's house. However, before closing the sale, the house caught fire. According to the rule of equitable conversion, the loss due to fire would be shared in an equitable manner by both Alley and Emile.

Question 15

Three brothers own a piece of land in joint tenancy. Which of the following would take place if Tim died three years before the death of Jack, leaving Harry as the sole survivor?

A) Harry would own the land entirely and the heirs of Tim and Jack would have no claim to the land.
B) Tim's share in the land would be equally distributed between Jack and Harry, and Harry's share would be transferred to his heir on his death.
C) Tim and Jack's shares would be distributed to their heirs respectively on their death.
D) Harry would have to surrender the entire land to the government since the joint tenancy was no longer valid.
E) Tim and Jack's shares should be distributed to those as described in their respective wills.

Question 16

When a tenant in common dies, his interest in the property passes to the surviving tenants in common.

Question 17

The living space of a condominium can be sold apart from the interest in the common space.

Question 18

Justin and Kylie are married and own a certain piece of real property jointly. Neither spouse individually can terminate the ownership; only a joint decision to do so will be effective, and they are said to hold the property as _____.

A) tenants in common
B) tenants by the entirety
C) absolute tenants
D) tenants in severalty
E) leasehold tenants

Question 19

Where real estate is concerned, as long as the buyer and the seller sign the sales agreement, it is not necessary for the names of buyers and sellers to be included within the body of the sales agreement.

Question 20

Which of the following accurately describes ownership in "severalty"?

A) Joint ownership of land by spouses
B) Possession of land by two tenants with unity of possession
C) Ownership of property by a single individual
D) Joint tenancy of land by two or more persons, with the right of survivorship
E) A form of ownership in which several people own a property, but occupy it at different times

Question 21

Which of the following authorizes the broker to act as agent in securing a purchaser for the seller's property and calls for a payment to the broker only if he/she were instrumental in finding the buyer?

A) Exclusive agency
B) Exclusive right to sell
C) Open listing
D) Tenants by entirety
E) Closed agreement

Question 22

Rupert wanted to purchase Anna's house. However, before closing the sale, he wanted to have the opinion of an attorney about the previous deeds, mortgages, tax liens, and other instruments recorded in the county land records office and public records with respect to Anna's house. Here, the attorney's opinion is known as:

A) The chain of title.
B) Constructive notice.
C) The recording statute.
D) A title opinion, or a certificate of title.
E) A quitclaim deed.

Question 23

Which of the following acts of the United States gives all the citizens of United States the same rights to inherit, purchase, lease, sell, hold, and convey real and personal property?

A) The Fair Housing Act of 1968
B) The Civil Rights Act of 1866
C) The Civil Housing Act of 1962
D) The American Housing Act of 1949
E) The National Housing Act of 1934

Question 24

Eliza had an eye on her neighbor's land for a long time. In order to obtain adverse possession of it, she built a tunnel under the neighbor's property without the knowledge of her neighbor or any other person in the locality and continued to use the tunnel to hide money from her husband for several years. However, the court ordered that she was not eligible for an adverse possession. Why?

A) Because the possession was not hostile.
B) Because the possession was without any consideration.
C) Because the possession was not actual.
D) Because the possession was not continuous.
E) Because the possession was not open and notorious.

Question 25

_____ is a method by which a third party holds a document or money or both until specified conditions have been met.

A) Easement
B) A quitclaim deed
C) Tenancy in common
D) Escrow
E) A condominium

Question 26

Sydney, Ginny's neighbor, built a fence on Ginny's land with the intention of taking the property, and also paid property taxes. Ginny was well aware of this, but did nothing about it. If this continued for a period of time set by state law, Sydney may be able to claim this property as her own. This method of acquisition would be known as:

A) quitclaim acquisition.
B) commercial escrow.
C) blockbusting.
D) adverse possession.
E) tenancy by entirety.

Question 27

What are the unities that must coexist in case of joint tenancy?

Question 28

Cathy sells her house to Sam on 30th March 2011 for $125,000. She then sells the house to Ron for the same amount on 4th April 2011. On arriving at the house, Ron realizes that he has been cheated and that at common law the first deed prevails over subsequent deeds. In case the state in which the transactions took place enacted recording statutes, which of the following act would have awarded Ron a title to the house?

A) Purchasing the house within three days of sale to the first purchaser.
B) Paying more than Sam for the same house.
C) Being the first to place the deed in a publicly available file in a register of deeds.
D) Applying for a dominant tenement interest at the public office in the county.
E) Being the first to apply for a restrictive covenant at the recorder's office in the county.

Question 29

Community property refers to:

A) the space in a condominium ownership arrangement that all purchasers own as tenants in common.
B) the shares in a cooperative building that are owned by tenants.
C) property acquired while a husband and wife are married to each other, in which each has undivided interest.
D) property in which joint tenants have unity of possession but not title.
E) the shares of the many owners in a time-share type of property.

Question 30

Toni asked Adler, a real estate broker, exclusive agency to sell her farm house, and promised to pay 5% commission on the sale. Toni's friend, Deena, approached her to buy the farm house at $100,000 on 24th Nov 2010 and Toni decided to sell the farmhouse to Deena, entering into an agreement. On 1st Dec 2010 Alder found a buyer for the farmhouse who was ready to purchase the farmhouse at $105,000. However, the sale could not take place due to the prior agreement with Deena. What commission is Alder entitled to receive for this job?

A) Zero dollars, because Toni had found the buyer.
B) 5% of $100,000 i.e. $5,000.
C) 5% of $105,000 i.e. $5,250.
D) Half of 5% of $100,000 i.e. $2,500.
E) Half of 5% of $105,000 i.e. $2,725.

Question 31

What is meant by title insurance? How is it useful during the sale of a real estate property?

Question 32

What are the various grounds on which the 1968 Fair Housing Act prohibits discrimination?

Question 33

The practice by real estate agents of panicking owners into selling or renting by telling them that minority groups are moving into the neighborhood is known as _____.

A) redlining
B) blockbusting
C) accession
D) garnishment
E) abatement