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Aesthetic zoning is unconstitutional.
Under the RULPA, limited partners cannot be employed by the partnership and still
enjoy limited liability.
The ADA does not apply to buildings built prior to 1988 that are not accessible to the
disabled.
Subchapter S shareholders can deduct corporate losses from their personal income.
Appraisers can cause redlining through their appraisal methods.
A mechanics' lien applies only to the improved structure.
A special permit is another term for variance.
In a race state, a non-bona fide purchaser can take title to the property.
A time'‘sharing interest can only be a lease.
Both air lots and column lots must be owned together (held by one owner).
The Doctrine of Ancient Lights has been adopted in the United States.
The right to a nonconforming use can be lost by a complete change in property use.
A lien is perfected through filing.
The better the credit rating of the borrower, the more the mortgage broker can make on
placing the mortgage.
In a subject to sale, the mortgagee loses its right to foreclose.
HUD is responsible for RESPA forms and procedures.
Group homes are unconstitutional.
A quitclaim deed does not pass title.
An attempted acceptance that changes even minor terms is labeled a counteroffer.
The Standard State Zoning Enabling Act does not permit a master plan for use in
establishing zoning regulations.
Sachi Salon is a beauty parlor with complete hair and nail services. Near the front
counter of the salon, the owner of Sachi leases a small space where Belinda's Bags
operates. Belinda carries a full line of Gucci, Prada, and Chanel bags. However, none of
the bags costs over $175. Sachi's owner has said many times, 'I got an $1100 Chanel
bag for $110. Somebody's selling knock-offs.' Which of the following is correct?
a. Because Sachi's owner is aware of the infringement of the trademarked goods, it can
be held liable as a landlord for that infringement
b. Sachi is not required to police the conduct of its tenants
c. Sachi can be held liable for infringement only if it shared in profits from Belinda's
sales
d. Sachi need not inquire of Belinda whether the bags are authentic
To which type of sale does the ILSFDA not apply?
a. Sale of lots in subdivision
b. Sale of one acre parcels in a rural area with full services
c. Sale of a commercial building
d. Both a and c
e. a, b and c
Under a race statute
a. The first purchaser to record wins title
b. The first bona fide purchaser to record wins title
c. The last bona fide purchaser takes title
d. None of the above
Which of the following represents the proper order of progression?
a. Enabling act, master plan, variances, permits
b. Enabling act, master plan, zoning classifications, permits
c. Enabling act, nonconforming uses, master plan, zoning classifications, permits
d. Master plan, enabling act, zoning classification, permits
Who is generally required to give property owners notice of work performed?
a. All contractors
b. Subcontractors
c. Suppliers
d. Both b and c
Alice and Ray Cramden purchased a home from Mary and Ralph Norton for $270,000.
Mary and Ralph had purchased their home from the developer for the subdivision. After
closing, the title company discovered that there were two liens on the home from the
landscaper for the subdivision developer for $12,000 and from the appliance wholesaler
for the developer for the subdivision for $8,000. Which statement best describes the
rights of Alice and Ray?
a. They took the home free and clear of the liens
b. Alice and Ray took the property subject to the liens
c. Alice and Ray can have the liens removed from their property title
d. Both a and c
What is the rule on priorities between liens and Article IX security interests?
a. The first to attach has priority
b. The first to record has priority
c. There are no priorities; both collect a proportionate amount
d. None of the above
Jane Wyman is a real estate agent who is the listing agent for Tom and Mary Arnold's
home. Jane has a buyer who is interested in purchasing the Arnold house, but the buyer
has a spotty credit history. Jane thinks the buyer has turned the corner on past problems
and will be a good buyer for the property. Jane does not disclose the buyer's spotty
credit history and Tom and Mary sign a contract for the sale of their home. As the buyer
tries to get qualified, Tom and Mary pass up several other offers. Jane
a. Has breached her fiduciary duty to the sellers by withholding material information
b. Represents the buyer and not the seller so she has done nothing wrong
c. Need not disclose a spotty credit history unless Tom and Mary ask
d. Cannot be held accountable for a buyer's failure to qualify for a mortgage loan
Suppose that the foreclosure sale brings $110,000, how much will each party receive?
Tesslers
a. $0
b. $2,000
c. $4,000
d. $6,000
e. $8,000
f. $92,000
The following language in a deed: "To my daughter so long as she does not permit
non'‘Caucasian tenants to reside therein."
a. Is legal so long as it is a private property
b. Is legal so long as there are other properties available for non'‘Caucasians
c. Violates the Rule Against Perpetuities
d. None of the above
Jane borrowed money to purchase her home. The mortgage securing the loan for
$263,000 was recorded on May 1, 2007. Jane entered into the following transactions:
Pool, second mortgage '“ July 1, 2007
Custom draperies purchased on credit with security interest filed '“ July 17, 2007
following installation on July 10, 2007
Which creditor has priority?
a. The mortgage lender
b. The pool company/second mortgage
c. The drapery company
d. a and b have equal priority
Identify each of the following as a trespasser, licensee, or invitee.
a. Paramedic
b. Salesperson
c. Meter reader
d. Camper in a national park
e. School children who regularly cut across property
Jacqueline Olaf owned a large tract of land from 1953 to the present. The house she
resides in was on one-half of the tract and a smaller guest quarters was on the other
half. The garage for the main house was located on Mrs. Olaf's property, but she needed
to make a wide'‘swing turn to get into the garage (see diagram below). Mrs. Olaf has
just sold one-half of the tract with the guest house to Chad Smith. The deed did not
mention anything about garage access. Chad has just constructed a basketball court next
to the garage (as shown) with the hoop and pavement preventing Mrs. Olaf from getting
her car into the garage. Which of the following theories could help Mrs. Olaf gain a
right of access to her garage?
a. Easement by absolute necessity
b. Easement by prescription
c. Easement by implication
d. None of the above
The air space above a condominium
a. Is owned by the individual condominium owner
b. Is a common area
c. Is not a real property interest
d. None of the above
An acceleration clause
a. Makes the full amount of the debt due and owing in the event of default
b. Is void in government'‘insured loans
c. Can only be for principal and interest
d. None of the above
The following exchanges occurred via fax:
Buyer, Day 1 '“ 'I offer to buy (legal description of property) for $350,000.'
Seller, Day 2 '“ 'I will sell (legal description of property) for $375,000.'
Buyer 2, Day 3 '“ 'I will buy (legal description of property) for $380,000.'
Seller, Day 3 (later) '“ 'I accept your offer of $380,000.'
Buyer 1, Day 3 (even later) '“ 'I accept your counter offer of $375,000.'
a. The seller has a contract with Buyer 2
b. The seller has a contract with Buyer 1
c. The seller has a contract with both Buyer 1 and Buyer 2
d. The use of fax communications does not satisfy the statute of frauds
Generally, the notice required for termination of a period tenancy is
a. One year
b. One month
c. Six months
d. One rental period
Property exchanges involving residential property
a. Have no tax consequences
b. Never result in gains
c. Are illegal
d. None of the above
Which of the following title issues would not be covered under a standard title policy?
a. Previously recorded mortgage
b. Recorded easement
c. Prescriptive easement
d. All of the above are excluded
Which of the following cannot inherit property?
a. Aliens
b. Illegitimate children
c. Half'‘bloods
d. All of the above can inherit property
A subcontractor has signed a document with the following language:
Notice: This document waives rights unconditionally and states that you have been paid
for giving up those rights.
The subcontractor signed the document in advance of receiving payment for his work.
What are the subcontractor's rights on the payment?
a. The subcontractor has given up his lien but might still be able to collect on a
unsecured contract basis
b. The subcontractor has unconditionally surrendered his rights to payment
c. The document is unconstitutional because of this clause and the lack of due process
d. The document waives only the lien
Seller A issued a counteroffer to Buyer B and Buyer C. Buyer B accepted the
counteroffer, but before A can notify C, C also accepts. What result?
Gladys Whatley was hospitalized for blindness, diabetes, and various problems with her
hips. At the time of her admission, hospital personnel described her as 'considerably
impaired' mentally. She received various medications while in the hospital and the
medical records refer to her as 'ill' and 'appearing very weak.'
While she was in the hospital, her daughter, Kay, brought Gladys a new will in which
some beach property owned by Gladys was conveyed to Kay and her husband. Kay had
Gladys execute the new will. After Gladys was released from the hospital to Kay's care,
Kay had a deed drawn up in which the beach property was conveyed to Kay and her
husband outright. When the remaining children learned of the conveyance, they sought
an easement so that they could use the beach on the property. When Kay refused, they
sought to have the will and deed set aside for undue influence. Can they succeed?
Vanguard Realty listed a home as having 1,980 square feet and it had only 1,837 square
feet. The buyers have sued the broker. Is he liable?
Easements have been used to preserve farmland.
A metes and bounds description that has no beginning point is legally insufficient.
Associations can recover from developers for defects in construction in the common
areas.
A possibility of reverter is a future interest that accompanies the creation of a fee simple
subject to a condition subsequent.
Robert S. Custer owns approximately 97 acres in Cumberland Valley Township,
Bedford County, where he operates a nursery business. In March 2001, Custer
purchased an electric generator for $1,500. Custer had the generator installed on a
concrete pad near his greenhouses and then had a steel shed type of enclosure installed
around the pad and generator. The generator is bolted to the concrete to prevent
vibrations and reduce noise. The generator is needed for back-up electricity for heating
the greenhouses should an outage occur. Custer has run into financial difficulties and
the bank is foreclosing on the land on which the nursery is located. Custer is vacating
the premises and wants to take the generator with him. Is the generator a fixture or
personal property?
Global Tower leased a portion of the 30-acre tract of Lloyd and Shirley Singer's farm in
order to construct a cell phone tower, along with the necessary and related ground
equipment for its use. The Singer farm is located in a C zoning area in Hamilton
Township, a zoning classification that permits multi-unit residences, commercial uses,
light industrial uses, and radio and television transmission and receiving towers. Global
sought approval from the zoning commission in the township for construction of the
cell tower. Sprint had already had a similar tower approved in another area of the
township. However, Global's application was denied because the zoning board found
that it would be a departure from the ordinary uses in the Singer farm area and that it
constituted development of the land, something that would require more processes and
approval. Discuss the issues in cell tower approval as well as the actions of the board in
this case.
Farmer A has just discovered that there are large pockets of geothermal energy beneath
his farm. A major corporation wishes to develop the resources. What words of caution
can you offer to Farmer A?
