A deed need not be recorded to be valid.
Recording involves the copying of documents and retention of those copies.
Social issue zoning has been declared unconstitutional.
A patron in a store is an invitee.
A broker who sells a multiple list property is not an agent of the listing broker.
Cumulative zoning permits higher uses in lower areas ‘“ i.e., single family homes are
permitted in townhouse areas.
Baselines run north to south every 24 miles.
An acknowledgment is a signature by a witness.
Creditors of individual joint tenants cannot foreclose on joint tenancy property.
Co’‘tenants are not responsible for contributing toward the cost of improvements made
by one tenant.
The SE’‘1/4 of the NE’‘1/4 has 40 acres.
Statutes protecting wind power are developing in a fashion similar to the early solar
panel statutes.
Piggyback mortgages have become impossible to create under the new regulatory
requirements for closing loans.
Exclusionary zoning, in general, is unconstitutional.
The pro rata formula for distributing funds that are not sufficient to cover all liens
means that the amount is distributed equally among the lien holders.
RESPA specifies percentage ranges for good faith estimates, and estimates exceeding
those ranges are violations.
When there is a dispute over whether an item is a fixture or personal property, which of
the following statements is correct?
a. When the dispute is between an insurer and a homeowner over whether property
destroyed in a fire was covered real property or personal property, the courts favor the
insurer
b. When the dispute is between a tenant and a landowner over whether something the
tenant has done to the leased premises is a fixture, the courts favor the landlord
c. When the dispute is between a buyer and a seller over whether an item is real
property and passes with the land, the courts favor the seller
d. The courts do not favor parties in fixture litigation; only degree of attachment
controls
Antitrust issues for brokers arise in which area?
a. Price fixing
b. Monopolization
c. Restraint of trade
d. None of the above
The following series of events/transactions occurred on Bert Easley’s ranch:
March 3, 2005 ‘“ Bert buys the ranch for $900,000; gives a mortgage to First Interstate
Bank (FIB) to secure the loan
April 12, 2007 ‘“ Bert gives First Federal (FF) a new mortgage (lower rate); FF pays off
the FIB loan balance
August 17, 2009 ‘“ Bert installs wind power equipment and signs a security agreement
with WP3 (the wind power seller); WP3 does not record a financing statement
If Bert defaults, what is the order of the creditor priorities?
a. FIB, FF, WP3
b. WP3, FF
c. WP3, FIB, FF
d. FF, WP3
Under which of the following acts are BCTs and BATs relevant?
a. Clean Air Act
b. CERCLA
c. Clean Water Act
d. All of the above
Sam Furber purchased a home in 2007 for $636,000, giving a mortgage to CNN
Mortgage Co. for $500,000. After moving in, Sam had a built-in dining cabinet and
bookshelves installed. He financed the shelving with Libraries, Inc., a total of $22,000.
Libraries filed a financing statement on the security interest in the shelving on March
18, 2008. The shelving and cabinet are attached to the walls of the home. In 2009, Sam
had a home theater installed by Living Entertainment. Living Entertainment financed
the installation, a total of $41,000, through a security interest and filed a financing
statement on September 9, 2009. The home theater includes an in-wall screen as well as
projection equipment suspended from the ceiling and 12 recliner chairs. Sam lost his
job and has defaulted on his mortgage payment. CNN is foreclosing on Sam’s home.
Assuming that the perfection filings are in the right place, what is the order of priority
on the foreclosure proceeds?
a. CNN, Libraries, and Living Entertainment
b. Libraries, Living Entertainment, and CNN
c. CNN and Libraries only because Living Entertainment’s financing relates to movable
property, not fixtures
d. CNN only has priority
Which of the following is not a state remedy for broker breaches of fiduciary duties?
a. Censure
b. Revocation of license
c. Suspension of license
d. All of the above are appropriate remedies
The consideration clause in a deed
a. Must specify the amount paid for the land
b. Is required in gifts
c. Must be present for the deed to be recorded
d. None of the above
Sam Johnson sold a one’‘acre parcel of land he owned (located near Lake Havasu) to
Henry Thoreau. Johnson conveyed it to Thoreau by warranty deed. Henry Thoreau is, in
all literary and legal senses, a bona fide purchaser. Later Ralph W. Emerson approached
Johnson about the same property, and Johnson sold it to him. Ralph, like Henry,
received a warranty deed from Johnson and is a bona fide purchaser. Neither Henry nor
Ralph has recorded their deeds. Johnson still later sold the same property to Emily
Dickinson who was told of it (independently) by Ralph and Henry. Ralph and Henry
had also described to Emily their shrewd purchases of the land. Upon receipt of the
warranty deed from Johnson, Emily records immediately at the Mohave County
Recorder’s office.
a. In a race state, who has title to the land? Explain.
b. In a notice state, who has title to the land? Explain.
c. In a race/notice state, who has title to the land? Explain.
d. What is the significance of Johnson giving a warranty deed in each transfer? Does he
have any liability?
e. Could Johnson have used another type of deed to avoid liability?
With regard to #29, suppose on February 11, 2013, the owner conveys to buyer 2.
Assume buyer 1 does not record. If the owner defaults, who gets the property?
a. The buyer
b. The mortgage company
c. The owner
d. None of the above
Which are horizontal lines in the U.S. Government Survey?
a. Parallels
b. Baselines
c. Prime meridians
d. Both a and b
With reference to # 31, suppose that Bobby sent his acceptance via UPS overnight
delivery on November 2 and the UPS package arrived at Sam’s home by 10:30 a.m. on
November 3.
a. Sam and Bobby do not have a contract
b. Sam and Bobby have a contract as of November 2
c. Sam and Bobby have a contract as of November 3
d. Sam and Bobby will have a contract on November 5 at 10:30 a.m.
Henry has passed away (intestate). He is survived by his wife, Henrietta, and three
children. Henry had no previous marriages. He also has two grandchildren and he
predeceased his mother. Under the UPC, who inherits Henry’s property?
a. His wife
b. His wife and children
c. His wife and mother
d. His wife, mother, children and grandchildren in equal shares
e. None of the above
Which of the following is not required in a security agreement?
a. Signature of the debtor
b. Description of the collateral
c. Address of the secured party
d. All of the above are required
“To A in 10 years” is
a. An estate for years
b. A fee simple absolute
c. An executory interest
d. None of the above
Which of the following is required for a valid prenuptial agreement?
a. Separate legal counsel for each party
b. Voluntary signature
c. Notarized signature
d. Court approval
An easement
a. Transfers with the dominant estate
b. Ends upon transfer of the dominant estate
c. Ends upon transfer of the servient estate
d. None of the above
Thomas Gilbert is an employee at Hazard Escrow. Ralph Dinkins, an attorney, has been
using Hazard for closings on a large number of properties he has been selling to limited
partnerships he has created. Because he has been using different names for selling the
property, the notarized acknowledgments on the deeds were a problem. Dinkins has
been giving Gilbert $750 per closing to notarize the signatures. Dinkins’ limited
partnerships turn out to be frauds. The limited partners wish to recover from Hazard
Escrow.
a. Hazard is liable for the fiduciary breach by Gilbert
b. Hazard is not liable because notarizing is not an escrow agent’s responsibility
c. Hazard is not liable unless the closings were flawed
d. Hazard is not liable because Gilbert took money on the side
Drew Canfield is a mortgage broker who specializes in subprime loans. If he places
borrowers in negative amortization loans, he earns a higher rebate. These loans also
carry a higher interest rate for the borrowers. Drew tries to steer borrowers into these
loans.
a. Drew has violated RESPA with his actions
b. Drew is collecting a YSP, now prohibited under RESPA
c. Drew can direct borrowers into higher-rate loans as long as the GFE discloses the
rates
d. Drew cannot accept such a kickback from the lender
Which of the following will reduce the tenant’s rent when common area expenses are
determined?
a. If the share of common area expenses is based on rentable areas
b. If the share of common area expenses is based on rented areas
c. If the share of common area expenses is based on the number of tenants
d. If the share of common area expenses is based on percentage of revenue generated
Where is the Bureau of Consumer Financial Protection located?
a. Within the Federal Reserve
b. It is a separate federal agency
c. It is within Fannie Mae
d. It is a state agency required by TARP
Suppose in #3, that Ralph’s wife had predeceased him, how would his property be
distributed?
Discuss the public policy issues involved in awarding property rights to a putative
spouse.
Suppose R wanted to put together a REIT trust for the duplexes. Would all his
requirements be met? What drawbacks exist?
The Real Estate Settlement Procedures Act is part of the United States Code.
The Fourth Amendment provides privacy protections for property owners.
The U.S. Supreme Court allows the provisions of the Uniform Rights of the Terminally
Ill Act to be valid if adopted by the state.
An executory interest is a future interest in the grantor.
Waste is an act or omission that causes permanent loss to the life estate.
A commercial tenant cannot demand a noncompete clause.