Question 1

Which of the following would be probably classified as non- fixtures?

Accepted Answer

A) A built- in dishwasher. 
B) A garden seat. 
C) A house. 
D) A block of land. 
E) All of the above.

Question 2

The difference between a fixture and a non- fixture is important in a contract for the sale of land because:

Accepted Answer

A) fixtures are automatically included with the land if they were fixed in three or more years prior to the contract of sale. 
B) fixtures are automatically included with the land unless they are specifically excluded in the contract of sale. 
C) non- fixtures are included with the land unless they are specifically excluded in the contract of sale. 
D) non- fixtures are automatically included with the land.

Question 3

Which of the following statements is true regarding a mortgagee sale of property?

Accepted Answer

A) The mortgagee must sell through a licensed real estate agent. 
B) The mortgagor must be given the first right to purchase the property at a fair price. 
C) The mortgagor is not allowed to attend the sale in case he or she makes a high bid and discourages genuine buyers. 
D) The mortgagor remains liable for any sum owing to the mortgagee after the proceeds of the sale have been distributed.

Question 4

After an exchange of contracts for the purchase of land and before the final payment of the sale price the purchaser has:

Accepted Answer

A) a life interest. 
B) an equitable interest. 
C) a legal interest. 
D) a fee simple interest.

Question 5

The indefeasibility principle in the Torrens title system means that:

Accepted Answer

A) a registered interest in land will take priority over an unregistered interest. 
B) the Torrens title system has created an exception to the nemo dat rule that you cannot pass on a better title to property than the one you are legally entitled to. 
C) a purchaser of land who acts honestly,pays a fair price and was ignorant of any fraud will remain the registered proprietor even when the title was passed on by someone who lacked good title. 
D) all of the above.

Question 6

One of the following cases confirmed that when the true owner of goods cannot be found and the goods are attached to land the person with the strongest claim to the goods is the owner of that land.What is the name of the case?

Accepted Answer

A) Bernstein v Skyviews & General Ltd. 
B) Ranger v Giffin. 
C) APA Ltd v Coroneo. 
D) Perpetual Trustee Co Ltd v Khoshaba.

Question 7

Which of the following statements is not true in relation to the Personal Property Securities Act 2009?

Accepted Answer

A) The PPS Register is administered by the Commonwealth Insolvency and Trustee Service. 
B) A secured party,such as lender that has been given a fixed charge over a company's assets can register its interest on the PPS Register. 
C) Secured parties can search the PPS Register to find out if a security interest is registered over personal property. 
D) The PPS Register includes possessory,non- possessory and statutory liens.

Question 8

When Rihanna went overseas she asked Kylie to mind her house.Kylie found Rihanna's Certificate of Title and transferred title in the land to her own name by forging Rihanna's signature.Kylie then sold the house to Leonardo who is now the registered proprietor.He paid market value and knew nothing about Kylie's fraud.Rihanna has returned and wants her house back.What is the most likely legal position?

Accepted Answer

A) Rihanna should regain her title because Kylie obtained it through fraud.Leonardo will have to take legal action against Kylie 
B) Leonardo will remain the registered proprietor.Rihanna may be entitled to compensation form the Torrens Assurance fund in her state. 
C) Leonardo will remain the registered proprietor.Rihanna's only chance of compensation is to take legal action against Kylie 
D) Leonardo's name will be removed from the title while the Land Titles Office investigate and determines the rightful owner.

Question 9

In New South Wales,mortgagees who exercise their power of sale have a statutory duty:

Accepted Answer

A) to take reasonable care to ensure the property is sold at market value. 
B) to act in good faith and to consider the interests of the mortgagor and any guarantor. 
C) 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. 
D) to satisfy all of the above requirements.

Question 10

Which of the following is not one of the essential elements of a valid easement?

Accepted Answer

A) The easement must give a benefit to the dominant land. 
B) The right granted must be very wide e.g.the right of a person to cross a neighbour's land without making vidual contact with the neighbour. 
C) The easement must become part of the land and will continue when the current owners sell it. 
D) The two parcels of land affected by the easement must be held and occupied by separate persons.

Question 11

What is the name of the land title system that provides a state guaranteed title to land?

Accepted Answer

A) Torrens title. 
B) Native title. 
C) Crown title. 
D) Old System title.

Question 12

Which of the following statements about covenants is not true?

Accepted Answer

A) Most covenants impose restrictions on the use of land. 
B) Covenants may be positive as well as negative. 
C) The document creating a covenant must comply with statutory requirements and clearly indicate the dominant and servient tenements. 
D) The document creating a covenant must clearly indicate any caveats or other legal claims.

Question 13

The main feature(s)of a Torrens title mortgage is/are that:

Accepted Answer

A) the mortgagee acquires a security over the land. 
B) an unregistered mortgage creates an equitable interest. 
C) the mortgagor remains the legal owner. 
D) all of the above.

Question 14

In Victoria,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.

Question 15

A person who has an equitable interest over Torrens title land can protect it by lodging:

Accepted Answer

A) an equity of redemption. 
B) a deed. 
C) a covenant. 
D) a caveat.

Question 16

Under common law,mortgagees who have the power to sell up a property have a duty to act in good faith.This means that they must:

Accepted Answer

A) not act fraudulently. 
B) delay the sale until there is a better time to sell. 
C) obtain the best price. 
D) comply with all of the above.

Question 17

The Torrens title system is based on:

Accepted Answer

A) the curtain principle. 
B) the insurance principle. 
C) the mirror principle. 
D) the indefeasibility principle. 
E) all of the above.

Question 18

Which of the following conditions must be satisfied before a mortgagee can forcibly sell up a property?

Accepted Answer

A) The mortgagee gave at least one month's notice in writing of its intention to sell. 
B) The sale must be genuine,which is usually achieved by selling at a public auction. 
C) The mortgagor is in default usually by failing to make at least one repayment. 
D) All of the above

Question 19

Under the federal Corporations Act 2001 a mortgagee that exercises its right to sell a corporation property has a statutory duty to:

Accepted Answer

A) act in good faith and to consider the interests of the mortgagor and any guarantor. 
B) 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) take reasonable care to ensure the property is sold at market value. 
D) satisfy all of the above requirements.

Question 20

An accountant has prepared tax returns for a client for several years and been paid until last year.The accountant has a possessory lien over:

Accepted Answer

A) all the tax documents in the accountant's possession. 
B) the client's lineage. 
C) all the tax documents in the accountant's possession and the client's vehicle if it is left at the accountant's premises. 
D) only the tax documents relating to the last year.

Exam 18: Property Law: Real Property and Mortgages