Real Estate Law (South-Western Legal Studies in Business Academic) 10th Edition

The effect of filing a financing statement in the incorrect filing office is losing perfection on the security interest. Answer: T Answer: T Answer: T Two black professors and their families (who had recently transferred to a university in a small town) sought to purchase homes in an all'white development. The developer took

A deed need not be recorded to be valid. Answer: T Answer: T Answer: T Recording involves the copying of documents and retention of those copies. Answer: T Answer: T Answer: T Social issue zoning has been declared unconstitutional. Answer: F Answer: F Answer: F A patron in a store is an invitee. Answer: T Answer: T Answer: T A broker who

Coal-fired plants are not required to obtain EPA approval for minor modifications to their plants. Answer: F Answer: F Answer: F Intensity zoning controls items such as building set'backs. Answer: T Answer: T Answer: T Landowners are liable for any injuries resulting from criminal acts committed on their property. Answer: F Answer: F Answer: F Actual and exclusive possession

Reed Watkins made and executed a valid will in which he left all of his property to his son and daughter. They failed to visit him or call. When Reed's neighbor was visiting one day, Reed got the will out and said, 'I don't want them to get a dime.

A life estate can be transferred by the holder. Answer: T Answer: T Answer: T Levitz entered into an agreement to sell property to Safeway. Safeway placed a condition in the agreement that required Levitz to obtain title to and sell to Safeway the lot adjoining the property that was the subject matter

A lien for federal estate taxes is a voluntary lien. Answer: F Answer: F Answer: F A creditor foreclosing on a joint tenant's pledged interest becomes a joint tenant. Answer: F Answer: F Answer: F Homeowners' associations cannot restrict color schemes. Answer: F Answer: F Answer: F Regulation of property can never constitute a taking. Answer: F Answer: F Answer: F The

The 1963 Clean Air Act was largely ignored. Answer: T Answer: T Answer: T Townships are numbered according to their distance from guide meridians. Answer: F Answer: F Answer: F The Fair Housing Act applies to ads for the sale or lease of property. Answer: T Answer: T Answer: T Title insurance affords coverage for forgeries on deeds. Answer:

Since 1958, Ray and Barbara Mensen have leased on a month-to-month basis a house owned by Helen and Clarence Haines (Clarence died in 1984). In 1963, discussions began between the two couples about the possibility of a purchase of the home. The Haineses had hoped the Mensens would look after

A real estate agent cannot provide a basis for a buyer's claim of misrepresentation. Answer: F Answer: F Answer: F A purchase contract is the same thing as an installment contract. Answer: F Answer: F Answer: F Title insurance does not cover issues related to misplaced boundary lines. Answer: F Answer: F Answer: F A bargain and sale deed

A public utility easement is an easement appurtenant. Answer: F Answer: F Answer: F The Uniform Status of Children of Assisted Conception Act deals with the rights of posthumous heirs. Answer: T Answer: T Answer: T When a remainder is given to the heirs of a then'living person, the remainder is vested. Answer: F Answer: F Answer: F A

An agency relationship exists between brokers and sellers. Answer: T Answer: T Answer: T Zoning limiting adult bookstores to certain areas is unconstitutional. Answer: F Answer: F Answer: F A recipient of a counteroffer must accept the counteroffer upon receipt if they made the original offer. Answer: F Answer: F Answer: F Parol evidence cannot be used to create

The Judsons deeded their property to the Synders, using a deed with a description that a court has determined to be legally inadequate. The Snyders, using the same description, deeded the property to the Crismons. The Crismons lived on the property for 32 years. The children of the Snyders then emerged

POC is an acronym for 'paid on credit.' Answer: F Answer: F Answer: F The interest on all home equity loans is non'deductible. Answer: F Answer: F Answer: F As between buyer and seller, the escrow instructions are controlling in the event of a conflict of terms. Answer: F Answer: F Answer: F In contract states, an implied contract

Misrepresentation requires proof of intent. Answer: F Answer: F Answer: F A street address is a legally sufficient description. Answer: F Answer: F Answer: F An option has the same rights and legal effect as earnest money. Answer: F Answer: F Answer: F The YSP need not be disclosed unless the borrower wishes to shop around on the mortgage

There are no criminal penalties for violations of RESPA deposit requirements. Answer: T Answer: T Answer: T The Torrens system requires registration of title. Answer: T Answer: T Answer: T A street address is a sufficient legal description. Answer: F Answer: F Answer: F Reverse mortgages allow retired homeowners to use the equity in the home until their home

April 1965, Berkeley Heights Shopping Center leased 11,514 square feet of space to A & P Supermarkets. Under the terms of the lease, Berkeley agreed not to lease any other shopping-center space to another grocery store. On April 16, 1977, A & P informed Berkeley that it was ceasing operations

In all states, attorneys acting for clients in selling real estate must have licenses. Answer: F Answer: F Answer: F Due process requires that a taxpayer not be required to pay tax until after they've had an opportunity to object. Answer: T Answer: T Answer: T If you move next to a nuisance, you are not entitled

A description that references a "part of" a section and gives the full government survey location is sufficient. Answer: F Answer: F Answer: F A broker has a duty to inspect the listed property. Answer: T Answer: T Answer: T The general priority rule between recorded land interests is first in time, first in right. Answer:

A periodic tenancy must be in writing to be valid. Answer: F Answer: F Answer: F The good faith estimate under RESPA must be given within one day of loan application. Answer: F Answer: F Answer: F In condominiums, the owner really owns air space. Answer: T Answer: T Answer: T The Rule of Capture permits a party to draw

An area zoned for commercial use only is an example of use restriction zoning. Answer: T Answer: T Answer: T Payment of taxes by the title holder precludes adverse possession. Answer: F Answer: F Answer: F The timing of the presentment of a prenuptial agreement is part of determining its validity. Answer: T Answer: T Answer: T Condominium owners

A plat map shows the dimensions of lots. Answer: T Answer: T Answer: T A son's murder of his testator father disqualifies the children of the murderer/son from inheriting. Answer: F Answer: F Answer: F If an individual does not have an advance directive on life support, then life support mechanisms cannot be stopped. Answer: F Answer:

The common law doctrine of advancement refers to the same thing as lapse. Answer: F Answer: F Answer: F RESPA is applicable to home improvement loans. Answer: T Answer: T Answer: T The doctrine of partial performance under the Statute of Frauds is not available for oral real estate contracts. Answer: F Answer: F Answer: F The habendum is

"To A for the life of B" creates a life estate in B. Answer: F Answer: F Answer: F A vested remainder subject to partial divestment exists when a remainder is given to a group which can expand in size. Answer: T Answer: T Answer: T A landlord can be held liable for injuries to tenants

First Lincoln holds a deed of trust on Ellen Tracy's home (amount secured = $175,000). Ellen has defaulted on her payments. Describe the steps First Lincoln must take to sell the property. Answer: First Lincoln's trustee must notice a trustee's sale; wait for the statutory period (typical is 90 days) and

In the "ready, willing and able" standard, "able" means financially able. Answer: T Answer: T Answer: T Redlining occurs when a lender considers the area of the property to be purchased as a factor in qualifying the buyer for the loan. Answer: T Answer: T Answer: T Once a listing agreement expires, the seller can sell

Josiah and Kelly Jones leased a home from Grace and Bruce Underwood. The Jones missed paying their second month's rent, and no one has been seen in the home. Grace has looked through the front window and seen the Jones' dog who is emaciated. Could the Underwoods enter the home? Answer:

R is putting together a syndicate for the purpose of constructing four duplexes on a piece of land he now owns. R would like to raise $200,000 for construction of the duplexes. He would allow the investors to share in any income produced and also would like them to have

Aesthetic zoning is unconstitutional. Answer: F Answer: F Answer: F Under the RULPA, limited partners cannot be employed by the partnership and still enjoy limited liability. Answer: F Answer: F Answer: F The ADA does not apply to buildings built prior to 1988 that are not accessible to the disabled. Answer: F Answer: F Answer: F Subchapter S shareholders

State constitutions cannot include provisions other than those that govern the structure of state government. Answer: F Answer: F Answer: F In determining what a description means, the terms are construed in the grantee's favor. Answer: T Answer: T Answer: T The Rule of Capture protects landowners drilling from their property at an angle to another landowners'

Promissory estoppel is used to help subs force generals to use them in the project if their figures were used in the bid. Answer: F Answer: F Answer: F The HUD-1 Settlement Statement has replaced the Uniform Settlement Statement for RESPA compliance. Answer: T Answer: T Answer: T A homeowner must obtain permission from the Architectural

EPA regulation of industry growth is more stringent in non'attainment areas. Answer: T Answer: T Answer: T Prime meridians are placed every 24 miles. Answer: F Answer: F Answer: F The buyer and seller can agree as to whether the purchase contract or the escrow instructions will be controlling. Answer: T Answer: T Answer: T A broker who fails

Freehold means that an interest in land is inheritable. Answer: F Answer: F Answer: F Offer your best advice for handling change orders during construction. Answer: Have them in writing, no oral change orders. Copy all parties up and down the construction change. Put provisions in your contract covering changes and additional costs. Answer: Have

The note or debt instrument should be referenced in the mortgage. Answer: T Answer: T Answer: T Brokers are only required to disclose direct profits they might make from an offer to the seller. Answer: F Answer: F Answer: F Water running from one landowner's property to another causing flooding is a trespass. Answer: T Answer: T Answer: T Brownfields

Joint tenants can make valid testamentary transfers of their interests. Answer: F Answer: F Answer: F MERS has the same information that is available in the public recording offices for land records. Answer: F Answer: F Answer: F Time'sharing interests can be fee simple interests. Answer: T Answer: T Answer: T 'I accept provided that the premises will be vacated

Small errors in lending disclosure statements are acceptable and will not result in the loss of mortgage rights. Answer: F Answer: F Answer: F In a pure race jurisdiction, only bona fide purchasers can take good title when dual claims are made. Answer: F Answer: F Answer: F An easement protecting a view is an example

In the cost approach to valuation, the assessor examines replacement cost. Answer: T Answer: T Answer: T Common law gives priority to lien holders in the order in which they file their liens. Answer: F Answer: F Answer: F The lender is responsible for delivery of documents to escrow. Answer: T Answer: T Answer: T A plat map shows

The purchase contract must be recorded in order to be valid. Answer: F Answer: F Answer: F Impact fees are unconstitutional. Answer: F Answer: F Answer: F An 'as is' clause does not provide blanket immunity for a broker. Answer: T Answer: T Answer: T Condominium owners have no ownership rights in the common areas. Answer: F Answer: F Answer: F Passive

A creditor of a joint tenant has a lien on the entire property. Answer: F Answer: F Answer: F A co-op owner cannot be removed from his or her unit through eviction processes. Answer: T Answer: T Answer: T Homeowners' associations cannot promulgate rules that are not part of the CC&Rs. Answer: F Answer: F Answer: F A patio

For the best protection for property rights, domestic partners should register their partnerships in states that recognize such relationships. Answer: T Answer: T Answer: T In the deed of trust financing arrangement, the land owner is the trustee. Answer: F Answer: F Answer: F Oil and gas rights are always taxed as real property. Answer: F Answer:

Landlords of commercial properties are liable for harm caused by criminal activity when there is a pattern of criminal activity. Answer: T Answer: T Answer: T Lester, a California resident, owns a parcel of property in Arkansas. Lester has not visited the property in 22 years but has paid taxes on it. When

There is little difference in the foreclosure rates on LMI mortgage loans vs. conventional mortgage loans. Answer: F Answer: F Answer: F Mortgage Assistance Relief Programs are not now regulated as a result of new regulations. Answer: F Answer: F Answer: F The growth in LMI loans was fueled by Fannie Mae's purchases of such loans.

The challenges mortgagors use in foreclosure proceedings are based on the requirement that the party foreclosing actually holds the mortgage note and lien. Answer: T Answer: T Answer: T There is increasing litigation between states over water allocation. Answer: T Answer: T Answer: T Multi-unit housing associations do not have a right of foreclosure for unpaid fees.

The Prior Appropriation Theory requires the rights of all appropriators to be equal. Answer: F Answer: F Answer: F SIPs are state plans for implementation of air quality standards. Answer: T Answer: T Answer: T A broker/agent has a duty to provide legal advice to clients. Answer: F Answer: F Answer: F Federal lands are exempt from real property

The American Recovery and Reinvestment Act does not permit government funds to go to private assistance for home buyers having trouble paying their mortgages. Answer: F Answer: F Answer: F The basis of a property = purchase price + improvements less depreciation. Answer: T Answer: T Answer: T An NPDES permit is required for point sources. Answer:

Prenuptial agreements can be set aside if undue pressure was exerted. Answer: F Answer: F Answer: F Conditions precedent may serve to excuse the buyer's or seller's performance under the purchase contract. Answer: T Answer: T Answer: T An option requires a seller to hold an offer open for the stated period of time and is

The Rule in Dumpor's Case provides that if the landlord agrees to one assignment, he's agreed to all assignments. Answer: T Answer: T Answer: T The remaining joint tenants can recover damages from a joint tenant who transfers his interest and severs the tenancy. Answer: F Answer: F Answer: F Interim zoning is unconstitutional. Answer: F Answer:

On November 5, 2001, Commercial Builders, Inc., contracted with Concord to construct a steel building that would house a motorcross track. This contract called for Concord to begin construction ASAP, and Concord began construction. At the time the construction began, Concord had not yet closed on buying the property, but

Under the UPA, partnership profits are split equally. Answer: T Answer: T Answer: T A mortgage is a contractual or equitable lien. Answer: T Answer: T Answer: T A tax sale requires formal foreclosure to be valid. Answer: F Answer: F Answer: F Cities and towns can provide benefits for stalled developments if the cities and towns receive benefits

Landlords control the hours of operation for common areas. Answer: T Answer: T Answer: T A utility easement ends once the servient estate is transferred. Answer: F Answer: F Answer: F Describe the protections of the Soldiers and Sailors Relief Act. Answer: The act, recently amended to afford greater protections for those on active duty in Iraq,

A tenant has the authority to contract so as to give lien rights on the landlord's property. Answer: F Answer: F Answer: F Fair market value is defined as what a willing buyer would pay a willing seller. Answer: T Answer: T Answer: T Regulation of land use is never a taking. Answer: F Answer: F Answer: F "All

There is no specified form to be followed for the settlement statement. Answer: F Answer: F Answer: F Disclosure statutes may prohibit brokers/agents from discussing certain issues related to a property. Answer: T Answer: T Answer: T Regulation A applies to intrastate offerings of securities only. Answer: F Answer: F Answer: F Homeowners' associations are restricted on foreclosure options for

State laws governing homeowner associations have increased in the past few years. Answer: T Answer: T Answer: T Brokers can be held liable for negligent misrepresentation. Answer: T Answer: T Answer: T A buyer who does not qualify for financing is not a ready, willing, and able buyer. Answer: T Answer: T Answer: T All-adult covenants are a violation

Only vested remainders can be transferred. Answer: F Answer: F Answer: F What is the effect of the failure to give the preliminary notice? Answer: In most states ' right to lien is lost. Answer: In most states ' right to lien is lost. Answer: In most states ' right to lien is lost. The degree of

In both tenancies in common and joint tenancies, all tenants have the right to exclusive use and possession. Answer: T Answer: T Answer: T A subdivision trust is a method of financing in which both the buyer and seller are beneficiaries. Answer: T Answer: T Answer: T Just compensation is determined by the value of the

Discuss the differences between the possibility of reverter and the right of entry/power of termination. Answer: a. Fee simple determinable vs. fee simple subject to a condition subsequent is the difference in the present land interests giving rise to these future interests.b. One is automatic while the other requires action on

Brokers can be classified as lenders for purposes of Regulation Z disclosure requirements. Answer: T Answer: T Answer: T A metes and bounds description requires an immovable starting point. Answer: T Answer: T Answer: T A township has 640 sections. Answer: F Answer: F Answer: F A deed transferring 'the farm' from the parent owners to the children who

Change orders require that the contractor be paid additional compensation. Answer: T Answer: T Answer: T 'The land that includes the Wind Song cave' is a sufficient legal description. Answer: F Answer: F Answer: F A mortgagee (with a properly recorded mortgage) who is obligated to advance future funds will not have its interest attach until

Parallels are placed every 24 miles. Answer: T Answer: T Answer: T The period of possession for claiming title by adverse possession is 5-25 years in most states. Answer: T Answer: T Answer: T The NE-1/4 of a section has 60 acres. Answer: F Answer: F Answer: F Tenants in common can make valid testamentary transfers of their interests.

Judicial foreclosure does not require notice to the mortgagor. Answer: F Answer: F Answer: F An EIS must be filed for both private and governmental projects. Answer: F Answer: F Answer: F There was an implied warranty of habitability at common law. Answer: F Answer: F Answer: F Title insurance covers mechanic's liens. Answer: F Answer: F Answer: F The specifics of

Some state laws now place time limits on when lenders can begin foreclosures on home mortgages. Answer: T Answer: T Answer: T "Due'on'sale" clauses are valid in residential mortgage loans. Answer: T Answer: T Answer: T Developers are responsible for pre-conversion expenses. Answer: T Answer: T Answer: T Legislators enact the rules and regulations agencies use. Answer: F Answer: F Answer: F Misrepresentation, to

The broker has no duty or liability to the buyer/offeror in a transaction. Answer: F Answer: F Answer: F The delivery of marketable title is a condition precedent to performance of a contract for the sale of land. Answer: T Answer: T Answer: T A PMSI in fixtures recorded before attachment will have priority over a

A lessee can never have a mechanics' lien validly imposed upon the lessor's property. Answer: F Answer: F Answer: F Appraisals now require a physical visit to the property. Answer: T Answer: T Answer: T Rent controls are generally in place for housing that qualifies for low-income housing credits. Answer: T Answer: T Answer: T Equitable servitudes are a

A tenancy for years is properly terminated with one rental period's notice. Answer: F Answer: F Answer: F Undue influence does not require proof of physical force. Answer: T Answer: T Answer: T Landlords in commercial properties are liable for injuries in the common areas. Answer: T Answer: T Answer: T Laughing heir statutes award property to the state

A street address coupled with a lot number and attached plat map is a legally sufficient address. Answer: T Answer: T Answer: T Economic development is a recognized public purpose for purposes of a taking of private property. Answer: T Answer: T Answer: T The escrow agent bears the responsibility for verifying the validity of check

To deliver marketable title, the seller must deliver property to the buyer that is free from mortgages and other liens. Answer: T Answer: T Answer: T Master-planned communities have experienced more blight from foreclosure than other types of developments. Answer: T Answer: T Answer: T The superfund is available to private citizens through suit. Answer: F Answer: F Answer:

The EPA prescribes standards for release of effluent as part of the NPDES permit system. Answer: T Answer: T Answer: T A seller can revoke an option at any time so long as there is proper notification. Answer: F Answer: F Answer: F An executor need only sign his name to the deed to transfer title.

A tenant at sufferance can be required to vacate at any time. Answer: T Answer: T Answer: T Phase I due diligence requires a search of public records related to the land. Answer: T Answer: T Answer: T The Patriot Act applies to escrow agents and closing. Answer: T Answer: T Answer: T In a subject to sale, the

Fair market value is the measure of adequate compensation in eminent domain. Answer: T Answer: T Answer: T A subsurface interest in land should include an easement or license for surface use for access. Answer: T Answer: T Answer: T F Under the UPC, a personal representative is appointed only in testate estates. Answer: F Answer: F Answer: