In the “ready, willing and able” standard, “able” means financially able.
Redlining occurs when a lender considers the area of the property to be purchased as a
factor in qualifying the buyer for the loan.
Once a listing agreement expires, the seller can sell to any buyer the next day without
paying a commission.
A co-op need not be incorporated.
Open and notorious possession requires the adverse possessor to give actual notice of
possession to the title holder.
Penalties for receiving kickbacks under RESPA is a fine of $20,000, two years in
prison, or both.
If a lender makes a mistake in the disclosure of the APR on a loan, there is a 30-day
right of rescission for the home buyer.
The Hope for Homeowners Act is available for all homeowners who are under water in
their mortgages.
Case precedent is reviewed even when case facts are not identical.
In some cases, courts have enforced a pattern of development as a deed restriction.
The interest on wrap’‘around mortgages in sales of residences is no longer deductible.
Undue restrictions on development of multi-unit housing is unconstitutional.
Aliases of the grantor should be noted on the deed.
A broker is free to reject offers below the listing price.
Privity of contract is not required in all states for a valid mechanics’ lien.
In federal courts, geothermal energy is treated as a mineral.
Passive losses can be carried forward indefinitely.
A permanent structure can be built solely in the air rights in a property.
A buyer accepts when he changes only immaterial terms.
The regulation of tattoo parlors does not meet the standard for regulation meeting a
legitimate health, safety, and moral interest.
The city of Fredonia is requiring all developers who are proposing subdivisions to the
city council to pay a one’‘time 1% of their contract costs as a fee for school and
facilities expansion. Several contractors object to the fee.
a. The fee is unconstitutional
b. A percentage fee is unconstitutional
c. The fee is an impact fee and is valid
d. None of the above
Which of the following would not be an example of a confidential relationship for
purposes of establishing undue influence?
a. Broker and agent
b. Priest and parishioner
c. Lawyer and client
d. Elderly parent and a child
With reference to #31, Sam
a. Can revoke his offer at any time because there is no consideration for the offer
b. Cannot revoke his offer because it was UCC and it was in writing
c. Cannot revoke his offer because it is a firm offer
d. Can revoke his offer any time prior to Bobby’s acceptance
Alice Barker’s home on two acres of land is located in an area where the state has
proposed construction of a freeway off-ramp. The state has offered Alice $200,000 for
her property. Alice believes the market value is $375,000. Alice has the following
questions she would like you to answer.
a. Can the state take her land?
b. Does she have a way to present what she believes the value to be?
c. Where can she find the law applicable to this proposed action by the state?
Which type of easement is a public utility easement?
a. Easement by prescription
b. It is a license, not an easement
c. Affirmative easement in gross
d. Negative easement in gross
The incentives for self-policing, disclosure, correction, and prevention provides lesser
penalties and sanctions
a. For first-time violators
b. For violators who came forward voluntarily
c. For whistleblowers who report their own companies
d. None of the above
A patron in a department store is
a. A trespasser
b. A licensee
c. An invitee
d. None of the above
Refer to question #29. If Painless Orthodontia did not record the document
a. The document is invalid
b. No property rights can transfer without recording
c. Painless has no rights for the hallway
d. The fact that the document is not recorded does not mean property rights do not exist
Which of the following cannot be disinherited completely?
a. Spouse
b. Natural child
c. Adopted child
d. All of the above can be disinherited completely
Court decisions
a. Interpret statutes
b. Cannot undermine the effects of statutes
c. Can be part of the common law
d. Both a and c
X owns an easement in Y’s property that permits X to operate his factory so that
polluted air can travel over Y’s property. X’s easement is an example of
a. A negative easement
b. An affirmative easement
c. A profit
Rachel has just been fined by her homeowner’s association (HOA) for parking her car
in front of her house. HOA rules require cars to be in the garage or driveway. Rachel
wants to know her best defense.
a. The rules are unconstitutional
b. The rules must be a state law before fines can be imposed
c. A court case has held such rules to be unenforceable
d. None of the above
Which of the following forms of syndication permit investors to recognize losses?
a. Partnership
b. Corporations
c. REITs
d. Both a and c
e. a, b and c
The following description is part of a deed: ‘The SE-1/4 of the SE-1/4 T1N’ of the
Bucks’ portion of Gentry Farm.
a. The description is sufficient because a popular name is coupled with a government
survey
b. The description is sufficient because of the government survey portion
c. The description is insufficient to pass legal title
d. None of the above
With regard to #23
a. The fact that these communications were faxes is irrelevant
b. The fact that these communications were faxes is irrelevant if the parties follow up
with written agreements
c. The fact that these communications were faxes makes every communication invalid
d. None of the above
Liquidated damage clauses
a. Are generally invalid
b. Can be enforced as long as compensatory damages are also collected
c. Are enforceable if reasonable
d. Are the same as clauses for consequential damages
RESPA applies to
a. All commercial mortgages
b. All FHA mortgages
c. All construction loans
d. None of the above
When a deed description is invalid
a. Courts allow parol evidence to clear up the issue
b. Courts correct the description themselves
c. Courts do to allow parol evidence to clear up ambiguous descriptions
d. Parol evidence is allowed as long as the parties agree to allow it
SIPs
a. Are state implementation plans for air quality standards
b. Are enforced by the state governments
c. Need not have EPA approval
d. None of the above
With reference to #22, suppose that the buyer tells Rachel that he can buy the house for
$90,000 if he can get financing. He explains to Rachel that he has bad credit from some
‘dumb’ business transactions. Rachel offers to have her daughter act as a purchaser
because her daughter can qualify for financing. Her daughter will then convey the
house to the buyer. Rachel
a. Has done nothing wrong because she found a ready, willing and able buyer
b. Has breached her fiduciary duty to her sellers
c. Can work to facilitate transactions through buyers fronted for that purchase
d. None of the above
Industrial groups are
a. The basis for EPA effluent guidelines
b. Irrelevant in pollution standards
c. Relevant at state levels only
d. None of the above
Webb Owens signed a listing agreement with Tom-Tom Realty to sell his 7,200-acre
ranch. Ralph Watkins, the listing agent from Tom-Tom, assures Webb that if Webb finds
a buyer there is no commission due and owing. However, the title at the top of the
signed listing agreement is ‘Exclusive Right to Sell.’ Webb does indeed find a buyer for
the ranch, the sale goes through, and both Ralph and Tom-Tom demand their
commissions. Must Owens pay the commission?
a. No, Owens had an open listing
b. No, because Owens was the procuring cause of the sale
c. Yes, because the parol evidence rule requires the enforcement of the written
agreement
d. No, because Watkins engaged in misrepresentation
Which of the following rights cannot be conveyed?
a. Air rights
b. Mineral rights
c. Prior appropriation water rights
d. None of the above
Louis and Karen Moroz can no longer make the payments on their home. They owe
$280,000 on their mortgage and their home was appraised at $195,000. The Morozes
decide to just walk away from their home. What are the implications of their decision?
•The mortgagee has no right of collection from them
•Walking away does not affect their credit rating
•They may take any fixtures with them that they have installed
•None of the above
•
In the case of a solar easement, the property with the protections is the servient estate.
Rouster has not yet taken the examination for real estate salespersons in his state, but
has the opportunity for a listing. Rouster says he has all the knowledge, and the
examination is simply routine. Can Rouster take the listing and collect a commission?
Suppose Tenant One pays on the 10th day, but the check bounces on the 15th day. What
can Jones do?
William Pajak married his third wife, Audrey, one day after they entered into a
prenuptial agreement by which Audrey waived any and all interests in William’s estate.
William had four children from his two previous marriages and wished for his property
to go to them. Audrey was a secretary at Carolina Furniture Company, William’s
business. She had a tenth-grade education and did not read the agreement before
signing it. The agreement was drafted by William’s lawyer, and the lawyer was present
while Audrey signed the agreement. Audrey also indicated that she knew William
owned the furniture store, but she knew of no other holdings. In fact, William’s property
and estate were quite extensive. Shortly after their marriage, William passed away.
Audrey claimed an interest in the estate because the prenuptial agreement was invalid.
The children claim that Audrey understood the agreement and chose not to seek advice.
Should Audrey be entitled to a spouse’s share of the estate?
Commercial tenants are liable for injuries occurring within their premises.
If a contingent remainder fails, the grantor holds a reversion.
With reference to #1, suppose Jones just changes the locks on Tenant One’s apartment.
What result?