Question 1

A mortgage creates a security interest in real property.

Accepted Answer

A mortgage is a legal agreement in which a lender provides financing to a borrower to purchase real property, and in return, the lender takes a security interest in the property to secure payment of the loan. This means that if the borrower defaults on the loan, the lender can foreclose on the property to recover their money.

Question 2

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

Accepted Answer

A right of redemption can indeed be defeated by operation of law, particularly if the legal process for foreclosure is completed and the redemption period (if any) has expired without the borrower exercising their right to redeem the property.

Question 3

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

Accepted Answer

This is known as delivery to a third party (or escrow) and is a valid method of delivering a deed. The third party holds the deed until certain conditions (such as payment) are met, at which point they will deliver it to the grantee.

Question 4

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

Accepted Answer

The UCC does not typically apply to real estate mortgages and trust deeds, as these are typically governed by state property and contract laws. However, the UCC may apply to certain aspects of these transactions, such as the assignment of a mortgage or the rights of a creditor in a foreclosure sale.

Question 5

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

Accepted Answer

Zoning is a power granted to local governments by the state, which is based on the state's reserved police power to regulate for the health, safety, and welfare of its citizens.

Question 6

The transfer of real estate requires consideration to be valid.

Accepted Answer

The answer of The transfer of real estate requires consideration...

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.

Accepted Answer

This statement is false. If Russell's mortgage debt is greater than the amount for which his farm is sold in a foreclosure action, he is still responsible for paying the remainder of the debt. This is known as a deficiency judgment.

Question 8

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

Accepted Answer

The answer of If Connie buys real estate subject to...

Question 9

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

Accepted Answer

The answer of In most states,it is not necessary to...

Question 10

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

Accepted Answer

The statute of frauds requires contracts for the sale of land to be in writing and signed by the party to be charged in order to be enforceable. An oral agreement for the sale of land would not meet these requirements and would not be enforceable.

Question 11

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

Accepted Answer

Delivery is one of the essential elements of a valid deed. The grantor must deliver the deed to the grantee or a third party in order for the transfer of title to be effective. Without delivery, the deed is merely a piece of paper and does not transfer title to the land.

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.

Accepted Answer

The law of conveyancing does establish 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.

Accepted Answer

A warranty deed includes a promise from the grantor (Jeff in this case) that they will be liable to the grantee (Paula) for any defects in title.

Question 14

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

Accepted Answer

A deed of trust is a legal document used in real estate transactions as a security for a loan, while a warranty deed is a document that transfers ownership of property from one party to another, guaranteeing that the title is free and clear of any liens or encumbrances.

Question 15

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

Accepted Answer

A warranty deed contains an implied warranty that the seller owns the property and has the right to sell it, and that the buyer will have peaceful possession of the property without interference from others.

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.

Accepted Answer

A deed of trust is a three-party instrument in which the borrower conveys the property to a trustee as security for the loan, and the trustee holds title to the property on behalf of the lender until the borrower pays off the debt. In contrast, a mortgage involves a two-party agreement between the borrower and the lender, and the lender holds a lien on the property as security for the loan.

Question 17

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

Accepted Answer

The Fair Housing Act is indeed Title VIII of the Civil Rights Act, passed in 1968.

Question 18

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

Accepted Answer

Title to land can be transferred in several ways besides by deed, such as through inheritance, adverse possession, or court order.

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.

Accepted Answer

Foreclosure is a legal process in which the mortgage holder can take possession and sell the property when the mortgagor is unable to repay the mortgage debt. This results in the termination of the mortgagor's rights in the property.

Question 20

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

Accepted Answer

A general warranty deed provides more comprehensive protection to the buyer than a special warranty deed, as it guarantees the property is free from all claims throughout its entire history, not just during the time the seller owned it.

Quiz 49: Transfer and Control of Real Property