Question 1

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

Accepted Answer

A)  permanent 
B)  wraparound 
C)  mortgage 
D)  deed of trust 
A)  permanent 
B)  wraparound 
C)  mortgage 
D)  deed of trust B

Question 2

In a[n] _______,the transaction is treated as a conventional operating lease for accounting purposes and payments under the lease are treated as rent; but for tax purposes the lessee treats the transaction as though it had purchased the property and obtained a loan from the seller.

Accepted Answer

A)  synthetic lease 
B)  sale and leaseback 
C)  operating lease 
D)  non-operating lease 
A)  synthetic lease 
B)  sale and leaseback 
C)  operating lease 
D)  non-operating lease A

Question 3

A _______ permit allows uses that are not permitted as a matter of right under a zoning ordinance and imposes conditions to ensure that the use will be appropriate for the particular situation.

Accepted Answer

A)  conditional-use 
B)  limited-access 
C)  nonconforming 
D)  division 
A)  conditional-use 
B)  limited-access 
C)  nonconforming 
D)  division A

Question 4

________ each own an undivided fractional interest in a parcel of real property.

Accepted Answer

A)  Tenants in common 
B)  Joint tenants 
C)  Tenants by the entirety 
D)  Community property tenants 
A)  Tenants in common 
B)  Joint tenants 
C)  Tenants by the entirety 
D)  Community property tenants

Question 5

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 6

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

Accepted Answer

A)  It must specifically describe 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 describe 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 7

Which of the following was the result on appeal in Strawn v.Canuso,the case in the text involving whether the defending developers of new homes and the real estate brokers marketing those homes had a duty to disclose to buyers that the homes were constructed near an abandoned hazardous waste dump?

Accepted Answer

A)  That the defendants should have disclosed the existence of the landfill but that they could not be held liable for money damages based on the caveat emptor rule. 
B)  That the defendants and the plaintiffs shared responsibility resulting in the defendants being responsible for 50% of the damages suffered by the plaintiffs. 
C)  That the defendants did not violate any duty because the burden was on the buyers to determine the prior use of the land. 
D)  That the defendants violated their duty to disclose the existence of the landfill and were liable to the plaintiffs. 
A)  That the defendants should have disclosed the existence of the landfill but that they could not be held liable for money damages based on the caveat emptor rule. 
B)  That the defendants and the plaintiffs shared responsibility resulting in the defendants being responsible for 50% of the damages suffered by the plaintiffs. 
C)  That the defendants did not violate any duty because the burden was on the buyers to determine the prior use of the land. 
D)  That the defendants violated their duty to disclose the existence of the landfill and were liable to the plaintiffs.

Question 8

Which of the following references the power of government to acquire private property needed for a public use?

Accepted Answer

A)  Adverse possession 
B)  Area plan 
C)  Eminent domain 
D)  Call 
A)  Adverse possession 
B)  Area plan 
C)  Eminent domain 
D)  Call

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A(n)________ gives the mortgagor the right,after a foreclosure,to reacquire property within a statutory limited period.

Accepted Answer

A)  interim statute 
B)  right of redemption 
C)  mortgagee relief statute 
D)  right of relief 
A)  interim statute 
B)  right of redemption 
C)  mortgagee relief statute 
D)  right of relief

Question 11

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 12

As opposed to a general partnership,property may not be held in a limited partnership.

Accepted Answer

A) True 
 B)False

Question 13

An outstanding mortgage balance in excess of the value of a house is referred to as negative equity.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following have been identified as valid uses of a state's police power?

Accepted Answer

A)  Efforts to address threats to the public health and safety, such as fires and unsanitary conditions. 
B)  Rent control within constitutional limits and efforts to address threats to the public health and safety, such as fires and unsanitary conditions 
C)  Rent control within constitutional limits; efforts to address threats to the public health and safety, such as fires and unsanitary conditions; and restrictions on off-site advertising signs. 
D)  Only efforts involving legislation addressing the conduct of police officers both on and off the job because the state's police power is limited to supervision of law enforcement officers within the state's jurisdiction. 
A)  Efforts to address threats to the public health and safety, such as fires and unsanitary conditions. 
B)  Rent control within constitutional limits and efforts to address threats to the public health and safety, such as fires and unsanitary conditions 
C)  Rent control within constitutional limits; efforts to address threats to the public health and safety, such as fires and unsanitary conditions; and restrictions on off-site advertising signs. 
D)  Only efforts involving legislation addressing the conduct of police officers both on and off the job because the state's police power is limited to supervision of law enforcement officers within the state's jurisdiction.

Question 15

The Americans with Disabilities Act places requirements on employers regarding accommodating the disabled but does not address accessibility to commercial facilities.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Which of the following are situations in which ownership rights are shared by two or more individuals?

Accepted Answer

A)  Tenancy in common 
B)  Tenancy by the entirety 
C)  Both tenancy in common and tenancy by the entirety 
D)  Neither tenancy in common nor tenancy by the entirety 
A)  Tenancy in common 
B)  Tenancy by the entirety 
C)  Both tenancy in common and tenancy by the entirety 
D)  Neither tenancy in common nor tenancy by the entirety

Question 18

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 19

An environmental impact statement is not required from the government before actions are taken that will affect the environment,but such a statement is required from private developers.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 18: real property and land use

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

In a[n] _______,the transaction is treated as a conventional operating lease for accounting purposes and payments under the lease are treated as rent; but for tax purposes the lessee treats the transaction as though it had purchased the property and obtained a loan from the seller.

A _______ permit allows uses that are not permitted as a matter of right under a zoning ordinance and imposes conditions to ensure that the use will be appropriate for the particular situation.

________ each own an undivided fractional interest in a parcel of real property.

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

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

Which of the following was the result on appeal in Strawn v.Canuso,the case in the text involving whether the defending developers of new homes and the real estate brokers marketing those homes had a duty to disclose to buyers that the homes were constructed near an abandoned hazardous waste dump?

Which of the following references the power of government to acquire private property needed for a public use?

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

A(n)________ gives the mortgagor the right,after a foreclosure,to reacquire property within a statutory limited period.

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

As opposed to a general partnership,property may not be held in a limited partnership.

An outstanding mortgage balance in excess of the value of a house is referred to as negative equity.

Which of the following have been identified as valid uses of a state's police power?

The Americans with Disabilities Act places requirements on employers regarding accommodating the disabled but does not address accessibility to commercial facilities.

Which of the following are situations in which ownership rights are shared by two or more individuals?

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

An environmental impact statement is not required from the government before actions are taken that will affect the environment,but such a statement is required from private developers.

A title insurance policy does not insure against

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