49) Which of the following is the final step in the conveyance of property?
A) acceptance of the deed
B) delivery of the deed
C) execution of the deed
D) recording of the deed
50) Which of the following does the covenant of seisin promise?
A) The grantor owns the interest that he or she is conveying.
B) The grantor controls an easement in the property he or she is conveying.
C) The grantor owns a conditional estate in the land.
D) The grantor has complied with all CC&Rs.
51) Which of the following does the covenant of quiet enjoyment promise?
A) The property is reasonably free of loud noises.
B) The grantor will defend the grantee’s title if it is challenged.
C) The property is free of easements and covenants.
D) The grantees will own the property as tenants by the entirety.
52) Which of the following does the covenant of further assurances promise?
A) The owner has included all the required covenants in the deed.
B) There are no easements on the property being conveyed.
C) The grantor will provide the grantee with any additional documents that the grantee may
require to perfect his or her title to the property.
D) The grantee will grant an easement by necessity to the grantor if it is required for the grantor
to access his or her property.
53) Only when a deed has been ________ is the deed said to have been executed.
A) signed by the grantor and the grantee
B) delivered to the grantee or to a predetermined third party
C) accepted by the grantee
D) filed with the appropriate county office
54) A ________ is a deed that simply transfers to the grantee the interest that the grantor owns in
the property.
A) general warranty deed
B) bargain and sale deed
C) quitclaim deed
D) deed of trust
55) A conveyance of ownership is presumed to be the conveyance of a fee simple absolute unless
something to the contrary is stated.
56) Recording is essential for the transfer of ownership.
57) The county office in which recordings of property transfer are to be filed varies by state.
58) What are the characteristics of a properly drafted deed?
59) ________ is acquiring ownership of realty by openly treating it as one’s own, with neither
protest nor permission from the real owner, for a statutorily established period of time.
A) Adverse possession
B) Adverse regression
C) Reverse possession
D) Reverse regression
60) Which of the following is not a requirement of adverse possession?
A) possessor openly treats the realty as his or her own
B) possessor pays valuable consideration for the realty
C) no protest or permission from the real owner
D) compliance with statutorily prescribed period of time
61) For adverse possession to occur, some states require that the adverse possessor has taken
possession of the land “under ________ of title,” that is, thinking that he or she was the lawful
possessor of the land.
A) cloud
B) condition subsequent
C) color
D) condition precedent
62) ________ is a process by which the government acquires the ownership of private property
for a public use over the protest of the owner of the property.
A) Condemnation
B) Adverse possession
C) Ratification
D) Reverse possession
63) ________ is the constitutional right of the government to take private property, upon the
payment of just compensation, for a purpose that will benefit the general welfare.
A) Sovereign immunity
B) Adverse possession
C) Eminent domain
D) Easement by prescription
64) Which clause of the U.S. Constitution permits the government to exercise the power of
eminent domain?
A) Takings
B) Equal Protection
C) Commerce
D) Privileges and Immunities
65) Acquiring ownership of realty by openly treating it as one’s own, with neither protest nor
permission from the real owner, for a statutorily established period of time is called
condemnation.
66) In all states, adverse possession is permitted only if the person thinks that he or she was the
lawful possessor of the land.
67) Eminent domain is the right of the government to transfer private property from one business
to another.
68) Discuss the consequences of the Michigan State Supreme Court case of Poletown
Neighborhood Council v. City of Detroit and the Detroit Economic Development Corporation.
69) How did the Supreme Court ruling in the Susan Kelo et al., Petitioners, v. City of New
London, Connecticut, et al. (Kelo) case influence the government’s ability to exercise eminent
domain?
70) A(n) ________ is a promise by an owner, usually contained in the deed, to use or not use a
piece of land in a particular way.
A) easement by prescription
B) quitclaim deed
C) restrictive covenant
D) equitable interest
71) Which of the following is an unlawful and unenforceable restrictive covenant?
A) a promise to never construct an apartment building on the property
B) a promise to never sell the land to any person born in China
C) a promise to always use the land for growing cotton
D) a promise to never construct a swimming pool on the property
72) Which of the following is a correct statement regarding a restrictive covenant not to
construct buildings higher than three stories and a restrictive covenant never to convey property
to minorities?
A) Both the restrictive covenant not to construct buildings higher than three stories and the
restrictive covenant never to convey property to minorities are illegal.
B) The restrictive covenant not to construct buildings higher than three stories is legal, while the
restrictive covenant never to convey property to minorities is illegal.
C) The restrictive covenant never to convey property to minorities is legal, while the restrictive
covenant not to construct buildings higher than three stories is illegal.
D) Both the restrictive covenant not to construct buildings higher than three stories and the
restrictive covenant never to convey property to minorities are legal.
73) ________ is the restriction of the use of property to allow for the orderly growth and
development of a community and to protect the health, safety, and welfare of its citizens.
A) Zoning
B) Eminent domain
C) Adverse possession
D) Variance
74) Which of the following is an incorrect statement regarding zoning?
A) It allows for the orderly growth and development of a community.
B) It protects the health of citizens.
C) It protects the safety of citizens.
D) It allows for the unrestricted growth of business in a community.
75) Which of the following is an incorrect statement regarding zoning?
A) Zoning may restrict the type of use to which land may be put, such as residential or
commercial.
B) Zoning may regulate land use in geographic areas on the basis of the size of buildings.
C) Zoning may regulate land use in geographic areas on the basis of the placement of buildings.
D) Zoning is preserved and promoted through the use of variances.
76) A ________ is permission to use a piece of land in a manner prohibited by the zoning laws.
A) variance
B) continuance
C) grievance
D) nuisance
77) Zoning is allowed under the ________ power of the state.
A) interstate commerce
B) police
C) intrastate commerce
D) takings
78) Restrictive covenants may be placed in CC&Rs and enforced by a homeowners’ association.
79) Zoning that totally destroys the economic value of a property holder’s land is considered a
constructive taking of the property.
80) A community often allows a nonconforming use of a particular property to remain when the
zoning of an area changes.
81) When is a landowner permitted to use his or her land in a manner prohibited by zoning laws?
82) How did the Dolan v. City of Tigard case influence the laws restricting people’s use of their
property?
83) ________ property includes movable items such as furniture, cars, and even pets.
A) Tangible personal
B) Tangible real
C) Intangible personal
D) Intangible real
84) ________ property includes such items as bank accounts, stocks, and insurance policies.
A) Tangible personal
B) Tangible real
C) Intangible personal
D) Intangible real
85) Which of the following is not a required element for a valid gift to occur?
A) mutual consideration
B) actual or constructive delivery
C) donative intent to make a present gift
D) willingness of the donee to take the gift from the donor
86) Which of the following statements is true of voluntary transfers of personal property?
A) All transfers of ownership require formal registration with a government agency.
B) A promise to make a gift is enforceable in court.
C) Once made, a gift is an irrevocable transfer.
D) For a valid gift to occur, the donor must accept the gift.
87) A piece of property whose owner intentionally placed it somewhere but forgot its location is
referred to as ________ property.
A) abandoned
B) lost
C) mislaid
D) res judicata
88) A piece of property that has been discarded by its original owner is categorized as ________
property.
A) abandoned
B) lost
C) mislaid
D) unclaimed
89) A piece of property whose true owner has accidentally or unknowingly dropped it or left it
somewhere is categorized as ________ property.
A) abandoned
B) lost
C) mislaid
D) jus relictae
90) In most states, if a bailor refuses to pay the bailee the agreed-upon compensation, the
________.
A) title to the bailed item passes to the bailee
B) bailed item will be sold after a hearing, and the proceeds left after compensating the bailee
and covering the costs of the sale will be given to the bailor
C) bailee must return the bailed property and then sue the bailor for damages
D) bailed item will be sold after a hearing and the proceeds will be divided between the bailee
and the court, with no portion of the proceeds going to the bailor
91) Which of the following statements is true of bailments?
A) The person who transfers possession of personal property to another is the bailee.
B) If the bailment is for the mutual benefit of both parties, the bailee is liable for damage to the
property caused by the bailee’s gross negligence.
C) If the bailment is for the mutual benefit of both parties, then both the bailor and the bailee
share responsibility for the damages due to negligence.
D) The parties to a contract cannot limit the liability of the bailee.
92) Personal property consists only of tangible property.
93) A bank account is intangible property.
94) For a valid gift to occur, the gift delivery must be made with donative intent.
95) A person who finds abandoned property becomes its owner by possessing it.
96) In most states, the finder of lost property has title to the property against all others.
97) Some state laws require that the finder of mislaid property must place an ad in a newspaper.
98) In which of the following countries does the purchase of property by a foreigner entitle the
foreigner to receive a visa to do business in that country?
A) China
B) Egypt
C) Dubai
D) India
99) Which of the following statements is true of purchasing property abroad?
A) Foreigners who purchase property in Dubai are not allowed to do business.
B) In Mexico, non-U.S. citizens are allowed to own property within 30 miles from the coastline
or 60 miles from any U.S. border.
C) U.S. mortgage companies generally finance purchases of foreign real estate.
D) It is advantageous to purchase property in the European Union, as the political system is
likely to remain stable.
100) Political stability is a factor to be taken into consideration when investing in real estate in a
foreign country.