Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The seller's warranty that he has marketable title to the land would be breached if the buyer discovers:

Accepted Answer

A)  a lien on the land. 
B)  a defect in the chain of title. 
C)  a lease of the premises. 
D)  All of these. 
A)  a lien on the land. 
B)  a defect in the chain of title. 
C)  a lease of the premises. 
D)  All of these.

Question 3

Foreclosure is 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 pay the mortgage debt.

Accepted Answer

A) True 
 B)False

Question 4

Most states have adopted the:

Accepted Answer

A)  title theory, which gives the mortgagor the right of ownership and possession. 
B)  lien theory, under which the mortgagor retains title and is entitled to possession to the exclusion of the mortgagee, even if the mortgagor defaults. 
C)  title theory, which brings no right of redemption. 
D)  position that the person who owns property subject to a mortgage will not be liable to the creditor for "waste." 
A)  title theory, which gives the mortgagor the right of ownership and possession. 
B)  lien theory, under which the mortgagor retains title and is entitled to possession to the exclusion of the mortgagee, even if the mortgagor defaults. 
C)  title theory, which brings no right of redemption. 
D)  position that the person who owns property subject to a mortgage will not be liable to the creditor for "waste."

Question 5

An oral agreement for the sale of land is enforceable under the statute of frauds.

Accepted Answer

A) True 
 B)False

Question 6

A doctrine allowing a mortgagor to relieve her property from a mortgage lien by paying the debt that the mortgage secures is known as:

Accepted Answer

A)  rehabilitation. 
B)  the covenant of quiet title. 
C)  foreclosure. 
D)  a right of redemption. 
A)  rehabilitation. 
B)  the covenant of quiet title. 
C)  foreclosure. 
D)  a right of redemption.

Question 7

The 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 pay the mortgage debt is known as:

Accepted Answer

A)  foreclosure. 
B)  equity of redemption. 
C)  adverse possession. 
D)  execution of a deed of trust. 
A)  foreclosure. 
B)  equity of redemption. 
C)  adverse possession. 
D)  execution of a deed of trust.

Question 8

The case of VonHoldt v. Barba & Barba Construction, Inc. held that:

Accepted Answer

A)  the implied warranty of habitability does not include actions against a builder brought by a subsequent purchaser for latent defects in an addition to a home. 
B)  the plaintiff's complaint should not have been dismissed by the lower court. 
C)  when a builder makes a significant addition to a previously built home, an action for damages resulting from latent defects affecting habitability exists under the doctrine of implied warranty of habitability. 
D)  All of these. 
A)  the implied warranty of habitability does not include actions against a builder brought by a subsequent purchaser for latent defects in an addition to a home. 
B)  the plaintiff's complaint should not have been dismissed by the lower court. 
C)  when a builder makes a significant addition to a previously built home, an action for damages resulting from latent defects affecting habitability exists under the doctrine of implied warranty of habitability. 
D)  All of these.

Question 9

Which of the following are the most usual covenants to convey title of realty?

Accepted Answer

A)  Covenant of title. 
B)  Covenant against encumbrances. 
C)  Quiet enjoyment. 
D)  All of these. 
A)  Covenant of title. 
B)  Covenant against encumbrances. 
C)  Quiet enjoyment. 
D)  All of these.

Question 10

Latosha grants a quitclaim deed to some property to Glenn. Now Glenn has found that someone else has a life estate in the land. Latosha has breached the warranty of title.

Accepted Answer

A) True 
 B)False

Question 11

When a contract involving the sale of real estate calls for the delivery of the deed in return for the purchase price on a certain day, this performance is known as:

Accepted Answer

A)  foreclosure. 
B)  warranty deed day. 
C)  contract day. 
D)  the closing. 
A)  foreclosure. 
B)  warranty deed day. 
C)  contract day. 
D)  the closing.

Question 12

An uncommon but possible way to obtain title to property is by adverse possession.

Accepted Answer

A) True 
 B)False

Question 13

Anders Builders builds and sells new residences. According to the law in all states, Anders impliedly warrants to the original purchasers and to subsequent buyers for a reasonable time that the houses are free of latent defects.

Accepted Answer

A) True 
 B)False

Question 14

Someone who expressly assumes a mortgage is personally obligated to pay it.

Accepted Answer

A) True 
 B)False

Question 15

Pam sells to Rob property which has a $50,000 mortgage in favor of First Bank. Rob purchases the property subject to the mortgage. The value of the property declines and there is a default on the mortgage. When First Bank forecloses, the property sells for only $30,000. 
a. Can First Bank recover the $20,000 balance from Rob? Explain. 
b. Can First Bank recover the $20,000 from Pam? Explain.

Accepted Answer

a. 
No, Rob purchased the property "subj

Question 16

If Russell's mortgage debt is greater than the amount for which his farm is sold in a foreclosure action, he is excused from payment of the remainder.

Accepted Answer

A) True 
 B)False

Question 17

LeBraun is seeking a variable rate mortgage from High Street Financial. Under the Mortgage Reform and Anti-Predatory Lending Act of 2010, which modifies the Truth-in-Lending Act, High Street must disclose the maximum amount LeBraun could pay on the mortgage, with a warning that payments will vary based on interest rate changes.

Accepted Answer

A) True 
 B)False

Question 18

The usual method of enforcing a restrictive covenant is by specific performance.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A deed of trust is almost identical to a warranty deed.

Accepted Answer

A) True 
 B)False

Exam 49: Transfer and Control of Real Property

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

The seller's warranty that he has marketable title to the land would be breached if the buyer discovers:

Foreclosure is 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 pay the mortgage debt.

Most states have adopted the:

An oral agreement for the sale of land is enforceable under the statute of frauds.

A doctrine allowing a mortgagor to relieve her property from a mortgage lien by paying the debt that the mortgage secures is known as:

The 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 pay the mortgage debt is known as:

The case of VonHoldt v. Barba & Barba Construction, Inc. held that:

Which of the following are the most usual covenants to convey title of realty?

Latosha grants a quitclaim deed to some property to Glenn. Now Glenn has found that someone else has a life estate in the land. Latosha has breached the warranty of title.

When a contract involving the sale of real estate calls for the delivery of the deed in return for the purchase price on a certain day, this performance is known as:

An uncommon but possible way to obtain title to property is by adverse possession.

Anders Builders builds and sells new residences. According to the law in all states, Anders impliedly warrants to the original purchasers and to subsequent buyers for a reasonable time that the houses are free of latent defects.

Someone who expressly assumes a mortgage is personally obligated to pay it.

If Russell's mortgage debt is greater than the amount for which his farm is sold in a foreclosure action, he is excused from payment of the remainder.

The usual method of enforcing a restrictive covenant is by specific performance.

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

A deed of trust is almost identical to a warranty deed.

Introduction to Law

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Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

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Conduct Invalidating Assent

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Third Parties to Contracts

Performance, Breach, and Discharge

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Introduction to Sales and Leases

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Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

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Nature and Formation of Corporations

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Fundamental Changes of Corporations

Secured Transactions and Suretyship

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

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