Question 1

Zoning ordinance variances:

Accepted Answer

A)  are usually available for hardships caused by the actions of the property owner seeking the variance. 
B)  are available if it affirmatively appears that the property as zoned cannot yield a reasonable return on the owner's investment in the property. 
C)  are available for hardships caused by the variance that are common to the zoned area. 
D)  All of these. 
A)  are usually available for hardships caused by the actions of the property owner seeking the variance. 
B)  are available if it affirmatively appears that the property as zoned cannot yield a reasonable return on the owner's investment in the property. 
C)  are available for hardships caused by the variance that are common to the zoned area. 
D)  All of these.

Question 2

The Mortgage Reform and Anti-Predatory Lending Act of 2010 modifies the Sarbanes-Oxley Act by making those who obtain mortgages more accountable for their actions.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

A deed of trust differs from a mortgage in that the former conditionally conveys the property to a trustee for the creditor's benefit.

Accepted Answer

A) True 
 B)False

Question 6

Stan has agreed to sell a warehouse to Ed for $150,000. The contract says that Stan will convey to Ed whatever interest he has in the property, but does not state that he has any interest. Ed is to receive a(n) deed.

Accepted Answer

A)  insurable 
B)  quitclaim 
C)  general warranty 
D)  special warranty 
A)  insurable 
B)  quitclaim 
C)  general warranty 
D)  special warranty

Question 7

In order for a deed to be effective between the purchaser and the seller of real estate, the deed must:

Accepted Answer

A)  be in writing and signed by both parties. 
B)  include the actual sale price. 
C)  be recorded pursuant to the state statute. 
D)  be delivered to the buyer by the seller with the intent to transfer title. 
A)  be in writing and signed by both parties. 
B)  include the actual sale price. 
C)  be recorded pursuant to the state statute. 
D)  be delivered to the buyer by the seller with the intent to transfer title.

Question 8

One common type of restrictive covenant restricts the use of property to residential purposes.

Accepted Answer

A) True 
 B)False

Question 9

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 satisfy the debt is known as:

Accepted Answer

A)  foreclosure. 
B)  equity of redemption. 
C)  adverse possession. 
D)  an executed deed of trust. 
A)  foreclosure. 
B)  equity of redemption. 
C)  adverse possession. 
D)  an executed deed of trust.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not true regarding the warranty of habitability?

Accepted Answer

A)  It is an implied warranty. 
B)  A majority of states hold that a builder-seller impliedly warrants a newly constructed house to be free of latent defects. 
C)  In the majority of states, the buyer must inspect the property thoroughly before completing the sale, as any defect discovered only after the transaction is complete would not be the seller's responsibility. 
D)  Many jurisdictions now require all sellers to disclose hidden defects that materially affect the property's value and that would remain undetected following a reasonable examination. 
A)  It is an implied warranty. 
B)  A majority of states hold that a builder-seller impliedly warrants a newly constructed house to be free of latent defects. 
C)  In the majority of states, the buyer must inspect the property thoroughly before completing the sale, as any defect discovered only after the transaction is complete would not be the seller's responsibility. 
D)  Many jurisdictions now require all sellers to disclose hidden defects that materially affect the property's value and that would remain undetected following a reasonable examination.

Question 12

Under notice-race statutes, a subsequent purchaser of real estate will prevail if he or she:

Accepted Answer

A)  records the deed first. 
B)  takes without actual knowledge of a prior unrecorded conveyance and records the deed first. 
C)  takes with actual knowledge of the prior conveyance and records first. 
D)  secures a guarantee of indemnification against title defects from the seller and records the written document first. 
A)  records the deed first. 
B)  takes without actual knowledge of a prior unrecorded conveyance and records the deed first. 
C)  takes with actual knowledge of the prior conveyance and records first. 
D)  secures a guarantee of indemnification against title defects from the seller and records the written document first.

Question 13

To be effective, a deed need not be conveyed for consideration.

Accepted Answer

A) True 
 B)False

Question 14

When the power of eminent domain is exercised, the owners must be given the fair market value of the property as of the time of the taking.

Accepted Answer

A) True 
 B)False

Question 15

A restrictive covenant stating that a house cannot be sold to someone who is not of the Caucasian race will be upheld by the courts.

Accepted Answer

A) True 
 B)False

Question 16

Alice purchases Bob's house and in so doing assumes the mortgage. Which of the following is/are true?

Accepted Answer

A)  Only Alice is personally liable to pay the mortgage. 
B)  Bob and Alice are both personally liable to pay the mortgage. 
C)  Only Bob is liable to pay the mortgage. 
D)  Bob is only liable if Alice defaults. 
A)  Only Alice is personally liable to pay the mortgage. 
B)  Bob and Alice are both personally liable to pay the mortgage. 
C)  Only Bob is liable to pay the mortgage. 
D)  Bob is only liable if Alice defaults.

Question 17

Recording of a deed is necessary to pass title from the grantor to the grantee.

Accepted Answer

A) True 
 B)False

Question 18

Most states have adopted the theory that a mortgage is a lien on real property for the payment of a debt.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  allocation. 
B)  eminent domain. 
C)  after-acquired title. 
D)  enabling. 
A)  allocation. 
B)  eminent domain. 
C)  after-acquired title. 
D)  enabling.

Question 20

Murphy and her child, who are both Caucasian, are seeking an apartment. Murphy is not married and never has
been. Grant owns an apartment complex with 8 units ready to rent. Grant will not be violating any laws by his refusal to rent to Murphy and her child on the basis that Murphy is a single, unwed mother.

Accepted Answer

A) True 
 B)False

Exam 49: Transfer and Control of Real Property

Zoning ordinance variances:

The Mortgage Reform and Anti-Predatory Lending Act of 2010 modifies the Sarbanes-Oxley Act by making those who obtain mortgages more accountable for their actions.

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

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

A deed of trust differs from a mortgage in that the former conditionally conveys the property to a trustee for the creditor's benefit.

Stan has agreed to sell a warehouse to Ed for $150,000. The contract says that Stan will convey to Ed whatever interest he has in the property, but does not state that he has any interest. Ed is to receive a(n) deed.

In order for a deed to be effective between the purchaser and the seller of real estate, the deed must:

One common type of restrictive covenant restricts the use of property to residential purposes.

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 satisfy the debt is known as:

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

Which of the following is not true regarding the warranty of habitability?

Under notice-race statutes, a subsequent purchaser of real estate will prevail if he or she:

To be effective, a deed need not be conveyed for consideration.

When the power of eminent domain is exercised, the owners must be given the fair market value of the property as of the time of the taking.

A restrictive covenant stating that a house cannot be sold to someone who is not of the Caucasian race will be upheld by the courts.

Alice purchases Bob's house and in so doing assumes the mortgage. Which of the following is/are true?

Recording of a deed is necessary to pass title from the grantor to the grantee.

Most states have adopted the theory that a mortgage is a lien on real property for the payment of a debt.

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

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

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