Question 1

The purpose of a title examination is to ensure that the seller has valid title to the land for sale.

Accepted Answer

A) True 
 B)False

Question 2

The bank who lends money in exchange for a mortgage on the borrower's house is considered to be the:

Accepted Answer

A)  mortgagee. 
B)  mortgagor. 
C)  profitor. 
D)  profitee. 
A)  mortgagee. 
B)  mortgagor. 
C)  profitor. 
D)  profitee.

Question 3

A bailment differs from a gift because:

Accepted Answer

A)  a gift requires consideration, but a bailment does not. 
B)  a gift requires delivery, but a bailment does not. 
C)  in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee. 
D)  a gift is always a contract, but a bailment is generally not a contract. 
A)  a gift requires consideration, but a bailment does not. 
B)  a gift requires delivery, but a bailment does not. 
C)  in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee. 
D)  a gift is always a contract, but a bailment is generally not a contract.

Question 4

Curt tells his son,"You can have my 1997 truck,but if your grades fall,I'm taking it back." Curt:

Accepted Answer

A)  has made a constructive gift. 
B)  has made a "revocable gift," which is effective as a gift as long as the stated condition is met. 
C)  has made a conditional gift. 
D)  has made no gift. 
A)  has made a constructive gift. 
B)  has made a "revocable gift," which is effective as a gift as long as the stated condition is met. 
C)  has made a conditional gift. 
D)  has made no gift.

Question 5

Real property consists of:

Accepted Answer

A)  buildings. 
B)  air rights. 
C)  plant life. 
D)  All of the above. 
A)  buildings. 
B)  air rights. 
C)  plant life. 
D)  All of the above.

Question 6

Liz grants property "to AA so long as no alcohol is ever consumed on the premises;if so,then to Maria and her heirs." AA has a fee simple defeasible.

Accepted Answer

A) True 
 B)False

Question 7

Ben has rented an apartment from Gerald with the rental period to begin June 1.According to the rule followed in the majority of American states,Gerald is obligated to remove the previous tenant in time for Ben to take possession on June 1.

Accepted Answer

A) True 
 B)False

Question 8

Charles agrees to store Tuan's car in Charles's garage for the winter months while Tuan visits his grandmother in California.As a bailee,Charles is automatically entitled to use Tuan's car while Tuan is away.

Accepted Answer

A) True 
 B)False

Question 9

Herley enters a restaurant and hangs his coat in an unattended cloakroom near the entrance of the restaurant.It is not a situation where he gives the coat to an employee of the restaurant in order to hold the coat.In this situation,the restaurant is not a bailee of Herley's coat.

Accepted Answer

A) True 
 B)False

Question 10

Recording a deed is important in putting the world on notice that the grantor has sold the land,but it has little effect between the grantor and the grantee.

Accepted Answer

A) True 
 B)False

Question 11

A lease for six months starting on June 1,2010,would be a:

Accepted Answer

A)  tenancy for years. 
B)  periodic tenancy. 
C)  tenancy at will. 
D)  tenancy at sufferance. 
A)  tenancy for years. 
B)  periodic tenancy. 
C)  tenancy at will. 
D)  tenancy at sufferance.

Question 12

Marshall,fearing death from severe injuries from a fall at work,assigned a certificate of deposit worth $20,000 to his co-worker and friend,Keith,who gladly accepts.Marshall recovers from the injuries.Why must Keith give the certificate of deposit back to Marshall?

Accepted Answer

A)  This is an inter vivos gift because Marshall was still alive when the gift was made. Any inter vivos gift is revocable because there is no consideration to make delivery of the property binding under contract law. 
B)  This type of gift is a gift causa mortis. It is a conditional gift which is conditioned on Marshall's actually dying. Because Marshall recovered, the gift is automatically revoked. 
C)  This is an ordinary gift, but it is revocable because we don't know if the certificate of deposit has matured or not. 
D)  This is an inter vivos gift and due to state laws, gifts in contemplation of death must be written into a valid will or otherwise the deceased's assets will be distributed according to state statute. 
A)  This is an inter vivos gift because Marshall was still alive when the gift was made. Any inter vivos gift is revocable because there is no consideration to make delivery of the property binding under contract law. 
B)  This type of gift is a gift causa mortis. It is a conditional gift which is conditioned on Marshall's actually dying. Because Marshall recovered, the gift is automatically revoked. 
C)  This is an ordinary gift, but it is revocable because we don't know if the certificate of deposit has matured or not. 
D)  This is an inter vivos gift and due to state laws, gifts in contemplation of death must be written into a valid will or otherwise the deceased's assets will be distributed according to state statute.

Question 13

The purpose of recording a deed or other real estate transaction is to:

Accepted Answer

A)  establish the rights between the grantor and the grantee. 
B)  assure the grantee that a transfer of real property is now complete. 
C)  establish the type of deed granted (i. e. warranty deed, special warranty deed, or quitclaim deed). 
D)  put the rest of the world on notice that the transaction occurred between the grantor and the grantee. 
A)  establish the rights between the grantor and the grantee. 
B)  assure the grantee that a transfer of real property is now complete. 
C)  establish the type of deed granted (i. e. warranty deed, special warranty deed, or quitclaim deed). 
D)  put the rest of the world on notice that the transaction occurred between the grantor and the grantee.

Question 14

If you grant a nonpossessory interest to Eagle Logging to enter your land and remove timber from ten acres,you have granted Eagle a profit.

Accepted Answer

A) True 
 B)False

Question 15

Jack leases an apartment from Sam.The term of the lease was six months,beginning January 1 and ending on June 31.On July 1,Jack was still in the apartment against Sam's wishes.As of July 1,Jack's tenancy is a:

Accepted Answer

A)  periodic tenancy. 
B)  tenancy at sufferance. 
C)  tenancy at will. 
D)  tenancy for years. 
A)  periodic tenancy. 
B)  tenancy at sufferance. 
C)  tenancy at will. 
D)  tenancy for years.

Question 16

The difference between an inter vivos gift and a gift causa mortis is that the inter vivos gift is made during the donor's lifetime and a gift causa mortis is a gift is made after the donor's lifetime by the donor's estate.

Accepted Answer

A) True 
 B)False

Question 17

Discuss whether or not the following common transactions are bailments and if so,who is the bailor/bailee,and what type of bailment is involved:
A) Renting storage space in Farmer's Frank's huge barn to keep your classic car out of the snow and ice of winter. The rental agreement provides for $100/month rent and Farmer Frank has the only access to the barn.
B) Hiring a moving company to move your belongings to a new residence.
C) Loaning your lawn mower to your neighbor.
D) Parking your car in a "park and lock" parking lot.

Accepted Answer

A bailment involves transferring possess

Question 18

Steve owns his house in fee simple.The state wishes to build a much-needed new highway through the center of his house.Steve does not want to give up his home.The state will be able to take the land through the use of its condemnation power,also called:

Accepted Answer

A)  highway robbery. 
B)  adverse possession. 
C)  eminent domain. 
D)  prescription easement rights. 
A)  highway robbery. 
B)  adverse possession. 
C)  eminent domain. 
D)  prescription easement rights.

Question 19

Bertha,from Chicago,traveled to San Francisco to attend a conference.Her sister,Martha,lives in San Francisco and consequently,Bertha made arrangements to spend a couple of days with her sister.The next morning sitting at the breakfast table,Bertha realizes that she packed a mismatched pair of shoes (one is black and the other is blue).Luckily,Martha wears the same size of shoes and lends Bertha a pair of black leather pumps.During the day,the shoes are damaged while Bertha is wearing the shoes.Bertha's duty of care would be a duty of:

Accepted Answer

A)  extraordinary care, because this is a bailment for the sole benefit of the bailee. 
B)  ordinary care. 
C)  only slight care, because this is a bailment for the sole benefit of the bailor. 
D)  None of the above are correct. 
A)  extraordinary care, because this is a bailment for the sole benefit of the bailee. 
B)  ordinary care. 
C)  only slight care, because this is a bailment for the sole benefit of the bailor. 
D)  None of the above are correct.

Question 20

Laverne knew that her house was infested with termites. Nevertheless, Laverne listed her house for sale by owner. Shirley had been looking for the perfect house for months now. She was about to give up the search when she decided to stop at Laverne's open house one Sunday afternoon. Shirley fell in love with the house, the yard, and the neighborhood. Shirley was so excited about buying this house that she did not bother to hire an attorney, hire a company to conduct a termite inspection, or talk to the neighbors about the condition of the house. Within six months after buying the house, the front porch started to crumble, exposing the rotten wood destroyed by termites. The neighbors confirmed that Laverne had mentioned that the house was infested with termites. Shirley wants out of the deal or money to repair the termite damage. Shirley's claim against Laverne would most likely be based on:

Accepted Answer

A)  a duty to disclose defects. 
B)  the implied warranty of habitability. 
C)  eminent domain. 
D)  profit. 
A)  a duty to disclose defects. 
B)  the implied warranty of habitability. 
C)  eminent domain. 
D)  profit.

Exam 24: Property

The purpose of a title examination is to ensure that the seller has valid title to the land for sale.

The bank who lends money in exchange for a mortgage on the borrower's house is considered to be the:

A bailment differs from a gift because:

Curt tells his son,"You can have my 1997 truck,but if your grades fall,I'm taking it back." Curt:

Real property consists of:

Liz grants property "to AA so long as no alcohol is ever consumed on the premises;if so,then to Maria and her heirs." AA has a fee simple defeasible.

Ben has rented an apartment from Gerald with the rental period to begin June 1.According to the rule followed in the majority of American states,Gerald is obligated to remove the previous tenant in time for Ben to take possession on June 1.

Charles agrees to store Tuan's car in Charles's garage for the winter months while Tuan visits his grandmother in California.As a bailee,Charles is automatically entitled to use Tuan's car while Tuan is away.

Herley enters a restaurant and hangs his coat in an unattended cloakroom near the entrance of the restaurant.It is not a situation where he gives the coat to an employee of the restaurant in order to hold the coat.In this situation,the restaurant is not a bailee of Herley's coat.

Recording a deed is important in putting the world on notice that the grantor has sold the land,but it has little effect between the grantor and the grantee.

A lease for six months starting on June 1,2010,would be a:

Marshall,fearing death from severe injuries from a fall at work,assigned a certificate of deposit worth $20,000 to his co-worker and friend,Keith,who gladly accepts.Marshall recovers from the injuries.Why must Keith give the certificate of deposit back to Marshall?

The purpose of recording a deed or other real estate transaction is to:

If you grant a nonpossessory interest to Eagle Logging to enter your land and remove timber from ten acres,you have granted Eagle a profit.

Jack leases an apartment from Sam.The term of the lease was six months,beginning January 1 and ending on June 31.On July 1,Jack was still in the apartment against Sam's wishes.As of July 1,Jack's tenancy is a:

The difference between an inter vivos gift and a gift causa mortis is that the inter vivos gift is made during the donor's lifetime and a gift causa mortis is a gift is made after the donor's lifetime by the donor's estate.

Steve owns his house in fee simple.The state wishes to build a much-needed new highway through the center of his house.Steve does not want to give up his home.The state will be able to take the land through the use of its condemnation power,also called:

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