Question 1

The doctrine declaring that the mortgagee's interest in the property is limited to the amount of the outstanding obligation is known as:

Accepted Answer

A)  adverse possession. 
B)  the title theory. 
C)  the lien theory. 
D)  equity of redemption. 
A)  adverse possession. 
B)  the title theory. 
C)  the lien theory. 
D)  equity of redemption. C

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

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 "subject to" the mortgage. This means that the mortgage does not personally obligate Rob to pay the mortgage debt and that his risk of loss is limited to the realty. 
b. Yes, Pam remains personally liable for the mortgage debt. When the proceeds are insufficient to satisfy the debt in full, the debtor-mortgagor remains liable for payment of the debt. First Bank will probably obtain a deficiency judgment against Pam and may then proceed to enforce payment of the $20,000 out of other assets that Pam owns.

Question 4

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 5

The law of conveyancing firmly establishes that a contract for the sale of land carries an implied seller's obligation to transfer marketable title.

Accepted Answer

A) True 
 B)False

Question 6

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 7

The debtor who uses real estate to secure an obligation is the mortgagee.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

The Fair Housing Act is Title VIII of the Civil Rights Act.

Accepted Answer

A) True 
 B)False

Question 11

To be effective, title to land may transferred only by deed.

Accepted Answer

A) True 
 B)False

Question 12

The transfer of real estate requires consideration to be valid.

Accepted Answer

A) True 
 B)False

Question 13

Title to land may be transferred by which of the following?

Accepted Answer

A)  Deed. 
B)  Will or by the law of descent upon the death of the owner. 
C)  Open, continuous, and adverse possession by a nonowner for a statutorily prescribed period of years. 
D)  All of these. 
A)  Deed. 
B)  Will or by the law of descent upon the death of the owner. 
C)  Open, continuous, and adverse possession by a nonowner for a statutorily prescribed period of years. 
D)  All of these.

Question 14

To run with the land, a restrictive covenant must involve promises that are enforceable under the law of contracts.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A special warranty deed will give the buyer better rights against the grantor (seller) than a general warranty deed.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Title insurance is unnecessary if a title search is made.

Accepted Answer

A) True 
 B)False

Question 19

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 20

A contract agreeing to indemnify the insured against certain specified defects in title to real property is called:

Accepted Answer

A)  title insurance. 
B)  a warranty deed. 
C)  guarantee insurance. 
D)  a real estate guarantee. 
A)  title insurance. 
B)  a warranty deed. 
C)  guarantee insurance. 
D)  a real estate guarantee.

Exam 49: Transfer and Control of Real Property

The doctrine declaring that the mortgagee's interest in the property is limited to the amount of the outstanding obligation is known as:

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

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 law of conveyancing firmly establishes that a contract for the sale of land carries an implied seller's obligation to transfer marketable title.

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

The debtor who uses real estate to secure an obligation is the mortgagee.

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

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:

The Fair Housing Act is Title VIII of the Civil Rights Act.

To be effective, title to land may transferred only by deed.

The transfer of real estate requires consideration to be valid.

Title to land may be transferred by which of the following?

To run with the land, a restrictive covenant must involve promises that are enforceable under the law of contracts.

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

A special warranty deed will give the buyer better rights against the grantor (seller) than a general warranty deed.

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

Title insurance is unnecessary if a title search is made.

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.

A contract agreeing to indemnify the insured against certain specified defects in title to real property is called:

Introduction to Law

Business Ethics

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

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

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

Interests in Real Property

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