Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 49. Transfer and Control of Real Property
1. General contract law provisions govern the sale of real property.
a. True
b. False
2. If there is a defect in title, the courts will not allow the buyer to refuse to go through with the purchase.
a. True
b. False
3. A warranty deed by Arthur to Bob includes Arthur's promise that he will be liable to Bob for any defects in title.
a. True
b. False
4. A special warranty deed will give the buyer better rights against the grantor (seller) than a general warranty deed.
a. True
b. False
5. To be effective, a deed need not be conveyed for consideration.
a. True
b. False
6. When the power of eminent domain is exercised, the owners must be given the fair market value of the property as
of the time of the taking.
a. True
b. False
7. A deed is not effective to transfer title to land until delivery.
a. True
b. False
8. Giving a deed to an escrow agent may be sufficient delivery of a deed.
a. True
b. False
9. A majority of jurisdictions follow the common law rule that the risk of loss or destruction of real property rests with
the seller until the deed is conveyed to the purchaser.
a. True
b. False
10. The UCC applies to real estate mortgages and trust deeds since they are security interests.
a. True
b. False
11. Murphy and her child, who are both Caucasian, are seeking an apartment. Murphy is not married and never has
been. Grant owns an apartment complex with 8 units ready to rent. Grant will not be violating any laws by his refusal
to rent to Murphy and her child on the basis that Murphy is a single, unwed mother.
a. True
b. False
12. Most states have adopted the theory that a mortgage is a lien on real property for the payment of a debt.
a. True
b. False
13. A minority of states have adopted the common law lien theory of mortgages which gives the mortgagor the right of
ownership and possession.
a. True
b. False
14. A deed of trust differs from a mortgage in that the former conditionally conveys the property to a trustee for the
creditor's benefit.
a. True
b. False
15. If Connie buys the real estate subject to an existing mortgage, she will have to pay the mortgage if the mortgagor
does not.
a. True
b. False
16. Foreclosure is the mortgagee's right to sell the property to satisfy the debt.
a. True
b. False
17. Foreclosure may be exercised only by sale under judicial decree.
a. True
b. False
18. If Bob's mortgage debt is greater than the amount for which his farm is sold in a foreclosure action, he is excused
from payment of the remainder.
a. True
b. False
19. The validity of zoning is based on the police power reserved to the states.
a. True
b. False
20. Eminent domain does not grant the government power to take private land for public use.
a. True
b. False
21. A restrictive covenant can bind only the original parties to it.
a. True
b. False
22. One common type of restrictive covenant restricts the use of property to residential purposes.
a. True
b. False
23. A restrictive covenant stating that a house cannot be sold to someone who is not of the Caucasian race will be
upheld by the courts.
a. True
b. False
24. If a zoning restriction causes a financial loss to a property owner, this amounts to a taking of property and the local
government will have to compensate the landowner for his loss.
a. True
b. False
25. Someone who expressly assumes a mortgage is personally obligated to pay it.
a. True
b. False
26. A mortgagee cannot assign a mortgage without the consent of the mortgagor.
a. True
b. False
27. Recording of a deed is necessary to pass title from the grantor to the grantee.
a. True
b. False
28. The debtor who grants a mortgage is the mortgagee.
a. True
b. False
29. Darren grants a quitclaim deed to some property to Floyd. Now Floyd has found that someone else has a life estate
in the land. Darren has breached the warranty of title.
a. True
b. False
30. A special warranty deed limits the warranty given out by the grantor to acts or omissions of the grantor.
a. True
b. False
31. An uncommon but possible way to obtain title to property is by adverse possession.
a. True
b. False
32. The Fair Housing Act prohibits discrimination based on race and color only.
a. True
b. False
33. The exemption from application of the Fair Housing Act applies to single-family homes owned by private individuals
who own fewer than four houses.
a. True
b. False
34. The Fair Housing Act exemptions do not apply to discrimination based on race or color.
a. True
b. False
35. Title insurance is unnecessary if a title search is made.
a. True
b. False
36. Title insurance protects an owner of real property from losses due to defects in title, liens, or encumbrances.
a. True
b. False
37. A title search guarantees rightful ownership.
a. True
b. False
38. A variance may be granted to permit deviation from a zoning ordinance where the application of the ordinance to
specific property would cause its owner particular hardship unique to the property.
a. True
b. False
39. The Mortgage Reform and Anti-Predatory Lending Act of 2010 modifies the Sarbanes-Oxley Act by making those
who obtain mortgages more accountable for their actions.
a. True
b. False
40. The warranty of habitability benefits only the original purchaser of a house.
a. True
b. False
41. The seller's warranty that he has marketable title to the land would be breached if the buyer discovers:
a. a lien on the land.
b. a defect in the chain of title.
c. a lease on the premises.
d. All of these.
42. The characteristics of a special warranty deed include:
a. the grantor warrants the title so far as it concerns his acts or omissions.
b. the grantor warrants the title to be free of defects caused by acts or omissions of others.
c. a general warranty of title.
d. All of these.
43. The covenant of title made by a grantor in a deed is also known as the covenant of:
a. seisen.
b. quiet enjoyment.
c. no encumbrances.
d. undisturbed possession.
44. In a quitclaim deed, the grantor warrants that:
a. he has no knowledge of any encumbrances.
b. he himself has not impaired title to the land.
c. the land passes with no impairment of title.
d. he is conveying whatever interest he has in the land.
45. The Wall Street Reform and Consumer Protection Act of 2010 requires all but which of the following in relation to
mortgages?
a. That lenders ensure a borrower’s reasonable ability to repay the loan.
b. That subprime mortgages not be issued.
c. Disclosure of the maximum amount a consumer could pay on a variable rate mortgage.
d. Expanded protection for borrowers of high-cost loans.
46. In order for a deed to be effective, it must contain all of the following except:
a. a description of the land.
b. a description of the consideration.
c. the signature of the grantor.
d. language conveying title.
47. In a state that adopts the lien theory regarding mortgages, the borrower would have the right to:
a. burn down the barn.
b. live on the land after default.
c. possess the land after foreclosure.
d. refuse to discharge a prior lien.
48. The right of redemption would require:
a. a court order.
b. assent of all parties.
c. payment of the entire debt with interest.
d. payment of past due installments.
49. Most zoning ordinances provide that a nonconforming use may be terminated:
a. immediately.
b. after 6 months of the structure's future useful life.
c. when a nonconforming structure is destroyed or substantially damaged.
d. All of these.
50. Alice purchases Bob's house and in so doing assumes the mortgage. Which of the following is/are true?
a. Only Alice is personally liable to pay the mortgage.
b. Bob and Alice are both personally liable to pay the mortgage.
c. Only Bob is liable to pay the mortgage.
d. Bob is only liable if Alice defaults.
51. A zoning ordinance may be challenged in the court by proving:
a. it bears no reasonable relation to public health, safety, morals, or welfare.
b. it involves the exercise of powers not granted to the municipality by the enabling act.
c. the restriction deprives a person of all use of the property.
d. Any of these.
