Question 1

A mortgage over land protects the interests of the mortgagee (lender)because:

Accepted Answer

A) the mortgagee has the right to sell any property of the borrower if the borrower does not repay the loan. 
B) the mortgagee is entitled to charge a higher interest rate. 
C) the borrower could be made bankrupt if they do not repay the loan. 
D) the mortgagee has the right to sell the land if the borrower does not repay the loan. 
A) the mortgagee has the right to sell any property of the borrower if the borrower does not repay the loan. 
B) the mortgagee is entitled to charge a higher interest rate. 
C) the borrower could be made bankrupt if they do not repay the loan. 
D) the mortgagee has the right to sell the land if the borrower does not repay the loan. D

Question 2

The name of the title to land that is based on ownership of shares in the property is:

Accepted Answer

A) Company title. 
B) Community title. 
C) Torrens title. 
D) Strata title. 
A) Company title. 
B) Community title. 
C) Torrens title. 
D) Strata title. A

Question 3

'Real property' is a term that means:

Accepted Answer

A) land,valuable goods that are taxable,and assets such as timber and minerals. 
B) land and anything that is fixed to the land. 
C) land,goods and intellectual property,such as shares. 
D) land and anything valuable that is stored on the land. 
A) land,valuable goods that are taxable,and assets such as timber and minerals. 
B) land and anything that is fixed to the land. 
C) land,goods and intellectual property,such as shares. 
D) land and anything valuable that is stored on the land. B

Question 4

Mrs North,who had limited business experience,mortgaged her property to a finance company to raise money for her husband's business.The contract greatly favoured the finance company.Two people have advised Mrs North against taking out the loan - her son,who was an accountant,and a barrister,who is a friend of the family.Mr North's business failed and the finance company has moved to sell up the property.Mrs North has been advised the finance company cannot sell up her house if she can prove that the mortgage contract was unconscionable.What is her legal position?

Accepted Answer

A) The contract is probably unconscionable because the terms favoured the finance company and Mrs North lacked business experience. 
B) Although the contract is unfair it is probably not unconscionable. 
C) If the court finds the contract was unfair it must find that the contract was unconscionable. 
D) The contract is probably unconscionable because her only professional advice came from a friend and a relative. 
A) The contract is probably unconscionable because the terms favoured the finance company and Mrs North lacked business experience. 
B) Although the contract is unfair it is probably not unconscionable. 
C) If the court finds the contract was unfair it must find that the contract was unconscionable. 
D) The contract is probably unconscionable because her only professional advice came from a friend and a relative.

Question 5

When a tenant in common dies,what happens to their share of the property?

Accepted Answer

A) It passes (transfers)automatically to any surviving (living)tenants in common. 
B) It passes automatically to the tenant's surviving spouse or de facto partner. 
C) It passes to the TICGC (Tenancy in Common Guardianship Committee). 
D) It passes to the person who has been left the property in the tenant's will. 
A) It passes (transfers)automatically to any surviving (living)tenants in common. 
B) It passes automatically to the tenant's surviving spouse or de facto partner. 
C) It passes to the TICGC (Tenancy in Common Guardianship Committee). 
D) It passes to the person who has been left the property in the tenant's will.

Question 6

While Peter was co- renting a house he found a bag of old dollar notes that had been hidden behind some bags in the garden shed.If the true owner cannot be found who is likely,under common law,to have the best title to the goods?

Accepted Answer

A) The person who owned the house when the notes were probably hidden away. 
B) The person who owns the house where Peter found the notes. 
C) Peter's flatmate,because the rental agreement was in her name. 
D) Peter. 
A) The person who owned the house when the notes were probably hidden away. 
B) The person who owns the house where Peter found the notes. 
C) Peter's flatmate,because the rental agreement was in her name. 
D) Peter.

Question 7

In Garcia v National Bank the High Court ruled that a wife who signs a guarantee for her husband's business loan was not liable for the debt because:

Accepted Answer

A) the lender did not ensure she received independent legal advice. 
B) she did not have a sufficient interest in the loan. 
C) she did not fully and accurately understand the agreement. 
D) all of the above reasons applied. 
E) of A and B only. 
A) the lender did not ensure she received independent legal advice. 
B) she did not have a sufficient interest in the loan. 
C) she did not fully and accurately understand the agreement. 
D) all of the above reasons applied. 
E) of A and B only.

Question 8

In Western Australia,mortgagees who exercise their power of sale have a statutory duty:

Accepted Answer

A) to act in good faith and to consider the interests of the mortgagor and any guarantor. 
B) to take reasonable care to ensure the property is sold for not less than market value or the best price that may be reasonably obtained. 
C) to take reasonable care to ensure the property is sold for not less than its market value. 
D) to satisfy all of the above requirements. 
A) to act in good faith and to consider the interests of the mortgagor and any guarantor. 
B) to take reasonable care to ensure the property is sold for not less than market value or the best price that may be reasonably obtained. 
C) to take reasonable care to ensure the property is sold for not less than its market value. 
D) to satisfy all of the above requirements.

Question 9

In Queensland,mortgagees who exercise their power of sale have a statutory duty:

Accepted Answer

A) to take reasonable care to ensure the property is sold for not less than market value or the best price that may be reasonably obtained. 
B) to take reasonable care to ensure the property is sold at market value. 
C) to act in good faith and to consider the interests of the mortgagor and any guarantor. 
D) to satisfy all of the above requirements. 
A) to take reasonable care to ensure the property is sold for not less than market value or the best price that may be reasonably obtained. 
B) to take reasonable care to ensure the property is sold at market value. 
C) to act in good faith and to consider the interests of the mortgagor and any guarantor. 
D) to satisfy all of the above requirements.

Question 10

What is the name of the estate in land that gives a person the right to make any legal use of the land except the right to sell it or leave it in a will?

Accepted Answer

A) An estate in fee complex. 
B) An estate in fee simple. 
C) An estate in fee ultimate. 
D) A life estate. 
A) An estate in fee complex. 
B) An estate in fee simple. 
C) An estate in fee ultimate. 
D) A life estate.

Question 11

When there is conflict between a legal interest in land and an equitable interest in land:

Accepted Answer

A) both will be defeated by a will or right to adverse possession. 
B) the equitable interest will usually defeat the legal interest. 
C) the legal interest will usually defeat the equitable interest. 
D) the equitable interest will defeat the legal interest if it was created before the legal interest. 
A) both will be defeated by a will or right to adverse possession. 
B) the equitable interest will usually defeat the legal interest. 
C) the legal interest will usually defeat the equitable interest. 
D) the equitable interest will defeat the legal interest if it was created before the legal interest.

Question 12

In the case of Bernstein v Skyviews,the court held that landowners' rights to the airspace over their property were:

Accepted Answer

A) restricted to the height necessary for ordinary use and enjoyment. 
B) unlimited if there were no aeroplanes over the property. 
C) restricted to the height limits recognised by the Department of Civil Aviation. 
D) restricted to 100 metres or a reasonable height above that level. 
A) restricted to the height necessary for ordinary use and enjoyment. 
B) unlimited if there were no aeroplanes over the property. 
C) restricted to the height limits recognised by the Department of Civil Aviation. 
D) restricted to 100 metres or a reasonable height above that level.

Question 13

Mrs Lopez signed a loan guarantee agreement with a bank that gave her share of the family home as security for a loan to her husband's company.She is not involved in her husband's business and does not know much about it or the agreement she has signed.Mrs Lopez was reluctant to sign but agreed after Mr Lopez insisted and assured her that the family home could never be sold up.Mr Lopez's business has gone into liquidation.Which of the following reasons could indicate that the mortgage contract could be unconscionable?

Accepted Answer

A) The interest rate on the loan was significantly above the market rate. 
B) Mrs Lopez would be forced into bankruptcy if the house was sold up. 
C) The bank did not ensure that Mrs Lopez received competent and independent legal advice. 
D) The bank wrongly believed that Mrs Lopez was a capable professional who had run her own business. 
A) The interest rate on the loan was significantly above the market rate. 
B) Mrs Lopez would be forced into bankruptcy if the house was sold up. 
C) The bank did not ensure that Mrs Lopez received competent and independent legal advice. 
D) The bank wrongly believed that Mrs Lopez was a capable professional who had run her own business.

Question 14

An easement is:

Accepted Answer

A) a right to use a neighbour's land without possessing it. 
B) also known as a profit à prendre. 
C) a right to gain ownership of a neighbour's land. 
D) a simple and easy way to gain access to a pathway on a neighbour's land. 
A) a right to use a neighbour's land without possessing it. 
B) also known as a profit à prendre. 
C) a right to gain ownership of a neighbour's land. 
D) a simple and easy way to gain access to a pathway on a neighbour's land.

Question 15

'Indefeasibility of title' means that a person who is registered as the owner of land has an indefeasible or unquestionable title to the land.This concept is a feature of:

Accepted Answer

A) common law title. 
B) old system title. 
C) Torrens title. 
D) all of the above. 
A) common law title. 
B) old system title. 
C) Torrens title. 
D) all of the above.

Question 16

A possessory lien gives its holder the right to:

Accepted Answer

A) apply legitimate pressure to obtain payment of a debt. 
B) enter another person's property and seize specific goods. 
C) retain control of goods that are already in their possession. 
D) all of the above. 
A) apply legitimate pressure to obtain payment of a debt. 
B) enter another person's property and seize specific goods. 
C) retain control of goods that are already in their possession. 
D) all of the above.

Question 17

The Torrens title system provides 'indefeasibility',which means that a person who becomes registered on the title to a parcel of land has:

Accepted Answer

A) an indefinite and consequential title. 
B) a title which can be defeated (lost)if the registered person has committed fraud. 
C) an indefinite and proportionate title. 
D) a title which cannot be defeated if the registered person has committed fraud. 
A) an indefinite and consequential title. 
B) a title which can be defeated (lost)if the registered person has committed fraud. 
C) an indefinite and proportionate title. 
D) a title which cannot be defeated if the registered person has committed fraud.

Question 18

The most extensive type of freehold title over land is called:

Accepted Answer

A) an estate in fee ultimate. 
B) an estate in fee complex. 
C) an estate in fee simple. 
D) a life estate. 
A) an estate in fee ultimate. 
B) an estate in fee complex. 
C) an estate in fee simple. 
D) a life estate.

Question 19

Xue and Zoe are cousins who own a property as tenants in common.Xue wants Zoe to buy his share which two valuers have estimated to be $ 300 000.Zoe is only willing to pay $200 000.Which statement best sums up Xue's legal rights?

Accepted Answer

A) Xue has no right to terminate the tenancy.The best he can hope for is that Zoe will die first and he will automatically acquire full rights in the property. 
B) Xue has the right to ask a court for order for specific performance to force Zoe to buy his share for $200 000. 
C) Xue has the right to terminate the tenancy and offer it for sale. 
D) Xue could ask a court to appoint a trustee to oversee the sale of the property. 
A) Xue has no right to terminate the tenancy.The best he can hope for is that Zoe will die first and he will automatically acquire full rights in the property. 
B) Xue has the right to ask a court for order for specific performance to force Zoe to buy his share for $200 000. 
C) Xue has the right to terminate the tenancy and offer it for sale. 
D) Xue could ask a court to appoint a trustee to oversee the sale of the property.

Question 20

Heckle and Jeckle buy a house and land as joint tenants.Heckle fights with Jeckle and leaves the house.Jeckle dies and leaves all his property to Tom.What statement best describes the legal rights of Heckle and Tom?

Accepted Answer

A) The house and land must be sold and evenly divided between Heckle and Tom. 
B) Heckle has the first right to make an offer and buy Tom's share. 
C) Tom is entitled to sole possession of the house and land. 
D) Heckle is entitled to sole possession of the house and land. 
A) The house and land must be sold and evenly divided between Heckle and Tom. 
B) Heckle has the first right to make an offer and buy Tom's share. 
C) Tom is entitled to sole possession of the house and land. 
D) Heckle is entitled to sole possession of the house and land.

Exam 18: Property Law: Real Property and Mortgages

A mortgage over land protects the interests of the mortgagee (lender)because:

The name of the title to land that is based on ownership of shares in the property is:

'Real property' is a term that means:

When a tenant in common dies,what happens to their share of the property?

While Peter was co- renting a house he found a bag of old dollar notes that had been hidden behind some bags in the garden shed.If the true owner cannot be found who is likely,under common law,to have the best title to the goods?

In Garcia v National Bank the High Court ruled that a wife who signs a guarantee for her husband's business loan was not liable for the debt because:

In Western Australia,mortgagees who exercise their power of sale have a statutory duty:

In Queensland,mortgagees who exercise their power of sale have a statutory duty:

What is the name of the estate in land that gives a person the right to make any legal use of the land except the right to sell it or leave it in a will?

When there is conflict between a legal interest in land and an equitable interest in land:

In the case of Bernstein v Skyviews,the court held that landowners' rights to the airspace over their property were:

An easement is:

'Indefeasibility of title' means that a person who is registered as the owner of land has an indefeasible or unquestionable title to the land.This concept is a feature of:

A possessory lien gives its holder the right to:

The Torrens title system provides 'indefeasibility',which means that a person who becomes registered on the title to a parcel of land has:

The most extensive type of freehold title over land is called:

Xue and Zoe are cousins who own a property as tenants in common.Xue wants Zoe to buy his share which two valuers have estimated to be $ 300 000.Zoe is only willing to pay $200 000.Which statement best sums up Xue's legal rights?

Heckle and Jeckle buy a house and land as joint tenants.Heckle fights with Jeckle and leaves the house.Jeckle dies and leaves all his property to Tom.What statement best describes the legal rights of Heckle and Tom?

The Legal System: Legal Foundations, the Constitution and Statute Law

The Legal System: the Courts, Case Law and Dispute Resolution

Civil Liability: Tort of Negligence

Civil Liability: Intentional Torts and Defamation

Business Structures

Agency Law

Partnerships and Joint Ventures

Introduction to Contracts

Intention to Create Legal Relations

Agreement

Consideration

Capacty

Genuine Consent

Legality

Terma of a Contract

Transfer and Termination

Remedies for Breach of Contract

Leases and Transfer of Real Property

Negotiable Instruments and Electronic Funds Transfers

Credit Law and the Anti-Money Laundering and Counter-Terrorism Financing Act

Bankruptcy and Debt Recovery

Sale of Goods

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Anti-Competitive Conduct

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Intellectual Property: Copyright, Designs, Patents, Trademarks and Other Types of Protection

Insurance Law

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