Question 1

Amber Blue owns a small hotel of the "bed & breakfast" variety. Hunter Greene, a tenant at Blue's bed & breakfast, sustained severe physical injuries when an intruder broke into Greene's room and attacked him with a baseball bat. The intruder neither was an employee of Blue's nor otherwise had any connection with the bed & breakfast. Green filed a tort action against Blue in an effort to collect damages for the medical expenses, lost earnings, and pain and suffering he experienced as a result of the intruder's attack. Greene argued that owners of commercial property such as a bed & breakfast are liable, as a matter of law, whenever guests are injured while on the premises. Blue argued that such property owners cannot be held liable when the guest's injuries were directly (and criminally) inflicted by a third-party attacker. Evaluate the arguments made, respectively, by Greene and Blue. Explain your supporting reasoning.

Accepted Answer

Each party's argument inaccurately summarizes the law in this area. Contrary to Greene's assertion, owners of commercial property are not liable as a matter of law every time persons legitimately on the premises are injured. Instead, such property owners are liable only when they were negligent, i.e., when their failure to use reasonable care was at least a substantial factor in the causation of the plaintiff's injuries. Contrary to Blue's assertion, property owners may sometimes be held liable on negligence grounds even when the harm experienced by a person legitimately on the premises was directly inflicted by a third-party criminal. If the property owner failed to use reasonable care (such as by failing to take reasonable security precautions against foreseeable criminal acts), the property owner may face liability to the injured person, assuming that the third party's criminal act was foreseeable and that the property owner's failure to use reasonable care was a substantial factor in the causation of the plaintiff's injuries.

Question 2

In order to create an easement by prescription a person must, in addition to fulfilling other requirements, have:

Accepted Answer

A)   recorded the easement immediately upon its creation.
B)   received the express or implied consent of the true owner.
C)   used the land of another out of necessity.
D)   used the land of another openly, continuously, and adverse to the owner's rights. D

Question 3

Which of the following grants a person unconditional power to dispose of the property during her lifetime or upon her death?

Accepted Answer

A)   License
B)   Easement
C)   Fee simple absolute
D)   Profit C

Question 4

An exclusive right to sell listing means that a broker receives a commission on a sale of the property even if the seller found the buyer.

Accepted Answer

A) True 
 B)False

Question 5

Sally seeks to list her home with Barry, a real estate broker. Sally and Barry agree that Barry will receive a commission if the home sells within 90 days, regardless of who actually causes the sale of the property. Sally and Barry have a(n):

Accepted Answer

A)   open listing contract.
B)   exclusive agency contract.
C)   exclusive right to sell contract.
D)   restrictive covenant contract.

Question 6

Which of the following is a true statement about easements?

Accepted Answer

A)   It gives the right to make certain uses of another's property.
B)   They are more informal than licenses.
C)   It pertains to personal rather than real property.
D)   They cannot pass with the land.

Question 7

Scrooge's property contains a restrictive covenant that allows only residential use of the land to his inheritors. Over the years, all the adjoining areas of land have become industrial areas. Scrooge's great-grandson, the present owner of his land, wants to set up a small manufacturing unit there. Will he be able to do so?

Accepted Answer

A)   Yes, since he is the present owner.
B)   Yes, because the circumstances have changed completely.
C)   No, the restrictive covenant is completely binding.
D)   No, there cannot be a waiver because Scrooge is dead.

Question 8

Which of the following typically characterizes community property?

Accepted Answer

A)   Partners get a share depending on who earned the property.
B)   One partner may convey property without the other's approval.
C)   It is property acquired during marriage.
D)   Inheritance is covered under community property.

Question 9

Alex has executed a deed in favor of Baxter which conveys in his favor whatever title he has at the time he executes the deed. This deed is called a warranty deed.

Accepted Answer

A) True 
 B)False

Question 10

Why must real estate sales contracts be evidenced in writing and signed by the party to be charged in order to be enforceable?

Accepted Answer

A)   Contracts of such property are covered under the statute of frauds.
B)   Such property would otherwise not be entitled to mortgage.
C)   Such property would otherwise not be entitled to insurance.
D)   Such property would otherwise be liable to eminent domain.

Question 11

Which of the following characterizes a tenancy in common?

Accepted Answer

A)   Each tenant has equal right to possess and use the property.
B)   The tenants must be a married couple.
C)   It grants the right of survivorship.
D)   Tenants are not allowed to divide the property.

Question 12

A broker operating under a(n) _____ contract is entitled to a commission only if he was the first to find a ready, willing, and able buyer.

Accepted Answer

A)   open listing
B)   exclusive right to sell
C)   exclusive agency listing
D)   exclusive right

Question 13

When taxes assessed on real property are not paid when due, they become a(n) _____ on the land.

Accepted Answer

A)   easement
B)   lease
C)   loan
D)   lien

Question 14

A restrictive covenant may no longer be valid if the circumstances surrounding the need for the covenant drastically change.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true of a joint tenancy?

Accepted Answer

A)   It is created by a corporation or a group of persons.
B)   It requires that the tenants be married to each other.
C)   Selling of property by a joint tenant leads to creation of a tenancy in common.
D)   A joint tenant can sell but not gift his part of the property.

Question 16

Eminent domain:

Accepted Answer

A)   allows the government to acquire private property for public use.
B)   allows a private citizen to sue his neighbors for nuisance.
C)   instructs private citizens to ensure reasonable security of their premises.
D)   prohibits discrimination in housing on the basis of race or disabilities.

Question 17

Which of the following are frequently used to cure technical defects in the chain of title to property?

Accepted Answer

A)   Insurable deeds
B)   Quitclaim deeds
C)   General warranty deeds
D)   Special warranty deeds

Question 18

Courts have become increasingly inclined, in recent years, to hold that owners of commercial property owe persons lawfully on the property a duty to take reasonable steps to protect them against the foreseeable criminal acts of third parties.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a history of what the public records show regarding the passage of title to, and other interests in, a parcel of real property?

Accepted Answer

A)   Recorded deed
B)   Title insurance
C)   Abstract of title
D)   Quitclaim deed

Question 20

Adams issues license of his land to Crowe for planting flower trees only. He makes it clear to Crowe in the deed that he may not take undue advantage of the license by using it for commercial purposes. However, after a few days, Adams realizes that Crowe has made a profit by selling flowers, without his knowledge. Can Adams recover the amount which Crowe collected from sale?

Accepted Answer

A)   Yes because, Adams is the owner of the land.
B)   Yes because, Adams' restrictions were clear.
C)   No because, Adams' has already licensed Crowe to use his land.
D)   No because, Adams does not possess any rights until the license expires.

Exam 24: Real Property

In order to create an easement by prescription a person must, in addition to fulfilling other requirements, have:

Which of the following grants a person unconditional power to dispose of the property during her lifetime or upon her death?

An exclusive right to sell listing means that a broker receives a commission on a sale of the property even if the seller found the buyer.

Sally seeks to list her home with Barry, a real estate broker. Sally and Barry agree that Barry will receive a commission if the home sells within 90 days, regardless of who actually causes the sale of the property. Sally and Barry have a(n) :

Which of the following is a true statement about easements?

Which of the following typically characterizes community property?

Alex has executed a deed in favor of Baxter which conveys in his favor whatever title he has at the time he executes the deed. This deed is called a warranty deed.

Why must real estate sales contracts be evidenced in writing and signed by the party to be charged in order to be enforceable?

Which of the following characterizes a tenancy in common?

A broker operating under a(n) _____ contract is entitled to a commission only if he was the first to find a ready, willing, and able buyer.

When taxes assessed on real property are not paid when due, they become a(n) _____ on the land.

A restrictive covenant may no longer be valid if the circumstances surrounding the need for the covenant drastically change.

Which of the following is true of a joint tenancy?

Eminent domain:

Which of the following are frequently used to cure technical defects in the chain of title to property?

Courts have become increasingly inclined, in recent years, to hold that owners of commercial property owe persons lawfully on the property a duty to take reasonable steps to protect them against the foreseeable criminal acts of third parties.

Which of the following is a history of what the public records show regarding the passage of title to, and other interests in, a parcel of real property?