Question 1

In a wraparound financing transaction,the second lender lends the owner additional funds and agrees to take over the servicing of the first loan.

Accepted Answer

A) True 
 B)False

Question 2

English common law created a type of co-ownership of real property between husband and wife called joint tenancy.

Accepted Answer

A) True 
 B)False

Question 3

A sublease is legally the same thing as an assignment of a lease.

Accepted Answer

A) True 
 B)False

Question 4

Describe in detail the three basic types of deeds including any warranties or guarantees the deeds provide.

Accepted Answer

The three basic types of deeds are grant

Question 5

Susie has a great farm bordering on a river and plans to build a house on a cliff overlooking the water.She was also considering building a couple of guest cottages to rent to vacationers.One day a land conservatory came to Susie and asked her to designate the land as a pristine area whereby no development or building could take place.Susie told them to get lost.The next thing she knew,the jurisdiction in which she lived had passed a regulation permanently prohibiting riverfront owners in her area from building any structures within one half mile of the river.There had been no such restriction in her state or county previously,and Susie suspects that the regulation is part of a plot to force landowners to agree to the request of the land conservatory.Susie tells her builder to go ahead with plans to construct the home because the government cannot take land through excessive regulation.Is Susie correct that the government cannot take land through excessive regulation?

Accepted Answer

A) Susie is incorrect although if the government action constitutes a taking,compensation to the landowner must be provided. 
B) Susie is incorrect,and no compensation to the landowner is required. 
C) Susie is incorrect although she would only be entitled to compensation for any lost profits she can establish. 
D) Susie is correct,and the regulation would be overturned by a federal court. 
A) Susie is incorrect although if the government action constitutes a taking,compensation to the landowner must be provided. 
B) Susie is incorrect,and no compensation to the landowner is required. 
C) Susie is incorrect although she would only be entitled to compensation for any lost profits she can establish. 
D) Susie is correct,and the regulation would be overturned by a federal court.

Question 6

An alternative to acquiring real property for cash is a _________,whereby the seller exchanges its property for another piece of property.

Accepted Answer

A) Rule 401 exchange 
B) tax-deferred exchange 
C) registration-exchange 
D) exemption-trade 
A) Rule 401 exchange 
B) tax-deferred exchange 
C) registration-exchange 
D) exemption-trade

Question 7

Fact pattern 19-1
Prudence wants to develop a shopping center in her town.She is very interested in developing the center at the location of an old dump.She can purchase the property cheaply,and it is near one of the fastest growing areas of the city.She is concerned,however,about being held liable for all cleanup costs.She has heard about federal and state funds that may be available; but she is concerned that if she purchases the property knowing that contamination is likely there,she will not be eligible to participate in government assistance programs for cleanup.She decides to discuss her problem with Bruce,a law student studying environmental law.
-Refer to fact pattern 19-1.What should Bruce advise Prudence regarding her plans?

Accepted Answer

A) That she should forget the project because she would be ineligible for any cleanup assistance and,as owner,would be individually liable for the entire project. 
B) That she should buy the property without any investigation and deny knowledge of contamination if later questioned because under federal law she can only be held liable if she had full and informed knowledge of contaminants when she made the purchase. 
C) That she should incorporate because while an individual is liable for the entire costs of cleanup,a corporation is not. 
D) That by taking appropriate steps to become a bona fide prospective purchaser,she can avoid liability for legacy contamination. 
A) That she should forget the project because she would be ineligible for any cleanup assistance and,as owner,would be individually liable for the entire project. 
B) That she should buy the property without any investigation and deny knowledge of contamination if later questioned because under federal law she can only be held liable if she had full and informed knowledge of contaminants when she made the purchase. 
C) That she should incorporate because while an individual is liable for the entire costs of cleanup,a corporation is not. 
D) That by taking appropriate steps to become a bona fide prospective purchaser,she can avoid liability for legacy contamination.

Question 8

A ________ is the right,conferred by a written contract,to purchase property on the same terms offered by or to a third party.

Accepted Answer

A) letter of agreement 
B) letter of intent 
C) right of first refusal 
D) right of first negotiation 
A) letter of agreement 
B) letter of intent 
C) right of first refusal 
D) right of first negotiation

Question 9

Which of the following is not true regarding the legal requirements of a deed?

Accepted Answer

A) It must specifically describes the interest that is conveyed. 
B) It must signed by the named grantee. 
C) It must be delivered to the named grantee. 
D) It must be accepted by the named grantee. 
A) It must specifically describes the interest that is conveyed. 
B) It must signed by the named grantee. 
C) It must be delivered to the named grantee. 
D) It must be accepted by the named grantee.

Question 10

Wallace loved vacationing in Mexico.He found a great beach front home that he wants to purchase near Cancun.The owners of the home have agreed to sell it to him for a great price because they are relocating to Europe.What advice would you give Wallace?

Accepted Answer

A) To refuse the deal because foreigners cannot own beachfront property in Mexico. 
B) To refuse the deal unless the owners acquire permission from the local authorities for the sale. 
C) To refuse the deal unless he plans to rent the property at least three months out of the year because that is required in Mexico. 
D) To complete the deal quickly before the owners change their minds. 
A) To refuse the deal because foreigners cannot own beachfront property in Mexico. 
B) To refuse the deal unless the owners acquire permission from the local authorities for the sale. 
C) To refuse the deal unless he plans to rent the property at least three months out of the year because that is required in Mexico. 
D) To complete the deal quickly before the owners change their minds.

Question 11

A title insurance policy does not insure against

Accepted Answer

A) defects in title. 
B) undisclosed liens. 
C) defects in warranties. 
D) errors in the abstraction of the title. 
A) defects in title. 
B) undisclosed liens. 
C) defects in warranties. 
D) errors in the abstraction of the title.

Question 12

A warranty of habitability applies to subsequent sellers as well as to the original builder.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not one of the three basic types of deeds?

Accepted Answer

A) A grant deed. 
B) A specific deed. 
C) A quitclaim deed. 
D) A warranty deed. 
A) A grant deed. 
B) A specific deed. 
C) A quitclaim deed. 
D) A warranty deed.

Question 14

All tenants in common have an equal right to possession of the property.

Accepted Answer

A) True 
 B)False

Question 15

The person that conveys real property by deed is called the grantee.

Accepted Answer

A) True 
 B)False

Question 16

A(n)________ is an agreement by a lender to replace a construction loan with a permanent loan,usually after certain conditions,such as the timely completion of the project,have been met.

Accepted Answer

A) substitution agreement 
B) interim agreement 
C) development commitment 
D) take-out commitment 
A) substitution agreement 
B) interim agreement 
C) development commitment 
D) take-out commitment

Question 17

A variance allows a landowner to construct something ordinarily not permitted under existing zoning regulations.

Accepted Answer

A) True 
 B)False

Question 18

A ________ sets forth the general terms and conditions of a proposed purchase until a formal acquisition agreement can be signed.

Accepted Answer

A) letter of agreement 
B) letter of intent 
C) form of contract 
D) formal delineation 
A) letter of agreement 
B) letter of intent 
C) form of contract 
D) formal delineation

Question 19

In community property states,property acquired by inheritance during the marriage is

Accepted Answer

A) Community property. 
B) Separate property. 
C) A tenancy by the entirety. 
D) A tenancy in common. 
A) Community property. 
B) Separate property. 
C) A tenancy by the entirety. 
D) A tenancy in common.

Question 20

Blaire and Jimmy have been married for many years and own a home through tenancy by the entirety.Blaire has grown children from a previous marriage,Andy and Candy; and her will provides that her interest in the home should go to them upon her death.Blaire dies at age 90,and a few weeks later Jimmy finds a new girlfriend and moves her into the home.Andy and Candy object and tell Jimmy to get out because they have an ownership interest in the home,and they believe that Jimmy is being disrespectful to their mother.Which of the following is true regarding the ownership claim of Andy and Candy?

Accepted Answer

A) Blaire's children are correct; and each of them,along with Jimmy,have a 1/3 ownership interest in the home. 
B) Blaire's children are correct,and they each have a 25% interest in the home with Jimmy owning the other 50% interest. 
C) Blaire's children are correct,and they each have a 10% interest in the home with Jimmy owning the other 80%. 
D) Blaire's children are incorrect,and Jimmy solely owns the home. 
A) Blaire's children are correct; and each of them,along with Jimmy,have a 1/3 ownership interest in the home. 
B) Blaire's children are correct,and they each have a 25% interest in the home with Jimmy owning the other 50% interest. 
C) Blaire's children are correct,and they each have a 10% interest in the home with Jimmy owning the other 80%. 
D) Blaire's children are incorrect,and Jimmy solely owns the home.

Exam 19: real property and land use

In a wraparound financing transaction,the second lender lends the owner additional funds and agrees to take over the servicing of the first loan.

English common law created a type of co-ownership of real property between husband and wife called joint tenancy.

A sublease is legally the same thing as an assignment of a lease.

Describe in detail the three basic types of deeds including any warranties or guarantees the deeds provide.

An alternative to acquiring real property for cash is a _________,whereby the seller exchanges its property for another piece of property.

A ________ is the right,conferred by a written contract,to purchase property on the same terms offered by or to a third party.

Which of the following is not true regarding the legal requirements of a deed?

Wallace loved vacationing in Mexico.He found a great beach front home that he wants to purchase near Cancun.The owners of the home have agreed to sell it to him for a great price because they are relocating to Europe.What advice would you give Wallace?

A title insurance policy does not insure against

A warranty of habitability applies to subsequent sellers as well as to the original builder.

Which of the following is not one of the three basic types of deeds?

All tenants in common have an equal right to possession of the property.

The person that conveys real property by deed is called the grantee.

A(n)________ is an agreement by a lender to replace a construction loan with a permanent loan,usually after certain conditions,such as the timely completion of the project,have been met.

A variance allows a landowner to construct something ordinarily not permitted under existing zoning regulations.

A ________ sets forth the general terms and conditions of a proposed purchase until a formal acquisition agreement can be signed.

In community property states,property acquired by inheritance during the marriage is

law, value creation, and risk management

Ethics ant the law

Courts, sources of law, and dispute resolution

Constitutional bases for business regulation

Agency

Administrative Law

Contracts

sales, licensing, and e-commerce

Torts and Privacy protection

product liability

Intellectual property

The employment agreement

civil rights and employment discrimination

executive compensation and employee benefits

Criminal law

Environmental law

Antitrust

Consumer Protection

Forms of business organizations

Directors, Officers, and Controlling Shareholders

Public and Private Offerings of Securities

Securities Fraud and insider trading

Debtor-Creditor Relations and Bankruptcy

International Business

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