Question 1

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

Accepted Answer

The power to convert private property to public use is known as eminent domain.

Question 2

The Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 amended the Truth in Lending Act to exempt banks with assets below $250 billion from some requirements for residential mortgage loans.

Accepted Answer

The Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 indeed amended the Truth in Lending Act, providing exemptions for banks with assets below $250 billion from certain requirements related to residential mortgage loans, aiming to reduce regulatory burdens on smaller banks.

Question 3

Controls that apply to the use of privately owned property include but are not limited to:

Accepted Answer

All of these options are controls that apply to the use of privately owned property. Zoning laws regulate the types of activities that can occur on a piece of land. Eminent domain allows the government to take private property for public use, with compensation. Restrictive covenants are agreements that restrict the use or activities that can take place on a property, often enforced through homeowners' associations or similar entities.

Question 4

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

Accepted Answer

Caveat emptor means "let the buyer beware," indicating that the buyer assumes the risk regarding the quality or condition of the item purchased.

Question 5

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

Accepted Answer

While recording a deed provides notice to the public and establishes priority of ownership, it is not essential to the validity of the deed. A valid deed requires a grantor, a grantee, and delivery of the document.

Question 6

An enabling statute:

Accepted Answer

An enabling statute is a law that grants authority to local governments, including the power to zone areas within their jurisdiction. This includes delegating zoning powers to cities and villages, allowing them to regulate building heights, and granting them the authority to limit the intensity of use in specific areas.

Question 7

Most states have adopted the:

Accepted Answer

The lien theory, prevalent in most states, allows the mortgagor (borrower) to retain both the title and possession of the property despite any default, distinguishing it from the title theory where the mortgagee (lender) holds the title until the mortgage is paid off.

Question 8

In most states, eminent domain would permit taking of privately owned land for all the following purposes except:

Accepted Answer

Eminent domain is typically used for public projects that benefit the community, such as infrastructure, public buildings, or services. Building a discount store is a commercial enterprise, not a public use, and thus generally would not qualify for eminent domain.

Question 9

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:

Accepted Answer

All of these reasons (A, B, and C) are valid grounds upon which Jan can seek judicial review of the zoning ordinance. The ordinance could be challenged for being invalid, being applied in an unreasonable manner, or effectively amounting to a confiscation of property without just compensation.

Question 10

A deed ordinarily contains all of the following except:

Accepted Answer

A deed typically includes a description of the land, the signature of the grantor, and a description of the quantity of estate conveyed. However, a description of the consideration (the value exchanged for the property) is not a necessary component of the deed itself, though it is often included in the contract of sale.

Question 11

Most zoning ordinances provide that a nonconforming use may be terminated:

Accepted Answer

Zoning ordinances often include provisions that allow for the termination of a nonconforming use if the structure in question is destroyed or substantially damaged. This is to encourage the redevelopment of the property in compliance with current zoning regulations.

Question 12

Judah  assumes the mortgage when she  purchases Erick's house. Which of the following is true?

Accepted Answer

When Judah assumes the mortgage upon purchasing Erick's house, both Judah and Erick become personally liable to pay the mortgage. This means the lender can seek repayment from either party in case of default.

Question 13

A typical enabling statute grants municipalities all but which of the following powers? The power to:

Accepted Answer

Enabling statutes typically grant municipalities a wide range of powers to regulate land use, including the regulation of building bulk, the division of the municipality into districts, and the determination of open space areas within buildings. These powers are essential for local governments to effectively plan and control development within their jurisdictions.

Question 14

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.

Accepted Answer

This is because hidden defects can significantly impact the value and safety of a property, and sellers are often legally obligated to disclose any known issues that could not be discovered through a normal inspection process.

Question 15

The seller's warranty that he has marketable title to the land would be breached if the buyer discovers:

Accepted Answer

A seller's warranty of marketable title is breached if there are any liens, defects in the chain of title, or leases affecting the property that the buyer was unaware of, as these issues can affect the buyer's ability to use or sell the property.

Question 16

If Roger's farm land is condemned in order to build a park and playground for the city, he must be given:

Accepted Answer

When a property is condemned for public use, the owner must be compensated with the fair market value of the property at the time of the taking. This is in accordance with the principle of eminent domain, which allows the government to take private property for public use with fair compensation to the owner. Options B, C, and D are not standard or required forms of compensation under eminent domain laws.

Question 17

Adverse possession requires no:

Accepted Answer

Adverse possession requires actual usage of the land for a set time period, but it does not require formalities such as written agreements or payments. The process is based on the occupier's physical presence and use of the property, not on formal legal agreements.

Question 18

Adverse possession:

Accepted Answer

Adverse possession is a legal doctrine that allows a person to claim ownership of land under certain conditions, such as open and notorious possession for a specific period of time, without the consent of the original owner. This results in an involuntary transfer of title from the original owner to the possessor.

Question 19

Which of the following carries with it no warranties or guarantees of title?

Accepted Answer

A quitclaim deed transfers any interest the grantor has in the property without any warranties or guarantees that the title is clear and free of claims; it simply passes whatever interest the grantor has, if any.

Question 20

The right of redemption would require:

Accepted Answer

The right of redemption typically requires the payment of the entire debt along with any accrued interest to fully satisfy the loan obligations and reclaim the property or collateral.

Quiz 49: Transfer and Control of Real Property