Promissory estoppel is used to help subs force generals to use them in the project if
their figures were used in the bid.
The HUD-1 Settlement Statement has replaced the Uniform Settlement Statement for
RESPA compliance.
A homeowner must obtain permission from the Architectural Control Committee before
making external modifications to his/her home.
The ability of the buyer to obtain financing is generally an implied condition precedent
to performance under the purchase contract.
A listing agreement cannot be extended by the conduct of the parties.
A Phase I environmental due diligence eliminates all CERCLA liability.
Properties used for solar energy development purposes are eligible for rapid five-year
depreciation.
Without a protective statute, the obstruction of a solar collector is governed by the
doctrine of ancient lights.
Death without a will means the decedent’s estate automatically escheats.
Landlords can place valid waivers of rent stabilization provisions in their leases.
Condominium associations can file liens for non’‘payment of monthly association fees.
For a taking to occur under eminent domain, there must be physical occupation of the
property.
A landowner owes the highest duty of care to licensees.
A time limit on a lien means that the lien holder must foreclose or the lien expires.
The current federal standard for control of toxic emissions is maximum achievable
control technology.
Cumulative zoning is unconstitutional in residential areas.
In a cumulative zoning area, residential uses are permitted in commercial zoning areas.
Zoning application procedures need not have time limits for processing.
Nicholas Sharp and Barry and Rhonda Downey own adjacent tracts of land in Howard
County, Maryland. Their two adjacent lots were a single tract of land owned by Jack
Ryan, Inc., the corporate alter ego of John E. Ryan. On February 20, 1996, Ryan
divided the tract by deed, creating Lot 1 and Lot 2. Ryan then conveyed Lot 1 to Pamela
Jekel. On the same date as the conveyance of Lot 1, Ryan and Jekel executed an
easement instrument which gave Ryan access to his Lot 2 over the existing Jeep trail
located on Lot 1. Jack Ryan ended up married to Pamela Jekel and conveyed his lot to
Nicholas Sharp. Pamela Jekel Ryan conveyed her lot to Barry and Rhonda Downey.
Which of the parties is in the original split and conveyance of the land is the dominant
tenement?
a. Jack Ryan
b. Pam Jekel
c. Neither, because you cannot create an easement at the same time as the conveyance
A proprietary lease
a. Is for perpetuity or a long period
b. Has no provision for rent
c. Both a and b
d. None of the above
How long must an owner hold title to property in order to qualify for the lower capital
gains rate for sale proceeds?
a. Six months
b. One year
c. Five years
d. Ten years
The City of Petaluma owns the Redwood Empire Sportsplex that it leased to a
developer for the purpose of constructing a sports complex. The developer contracted
with North Bay Construction Company, a licensed paving contractor, to perform
grading work at the property. North Bay completed the paving work but has not been
paid. North Bay recorded a mechanic’s lien against the property and served a ‘Notice of
Potential Claim’ on the City advising it that, as the owner and lessor of the property, it
may be responsible for the reasonable value of the material and labor provided by North
Bay. North Bay brought a cause of action to foreclose on the mechanic’s lien. What is
the city’s best defense?
a. That is was only a landlord and cannot ever be liable for the acts of a tenant
b. That paving is not an improvement for which a lien can be filed
c. That liens cannot be made against government entities without their express
permission
d. That liens must be filed prior to beginning work
Which of the following is not a fee simple defeasible estate?
a. Fee simple absolute
b. Fee simple subject to a condition subsequent
c. Fee simple determinable
d. None of the above
Creditors of tenants in common
a. Cannot take security in the tenancy property
b. Lose their interest in the tenancy property if it is conveyed
c. Are entitled to foreclosure rights on the full property
d. Both b and c
e. None of the above
An acknowledgment on a deed
a. Is a type of warranty
b. Is a notary verification
c. Cannot be placed on a quitclaim deed
d. Is assumed on a warranty deed
“To A for one year, beginning October 1, 2012” is an example of
a. Periodic tenancy
b. Tenancy for years
c. Fee tail
d. None of the above
What are saving clauses?
a. Clauses in grants that provide for heirs to take a reverter
b. Clauses in grants that eliminate fee tails
c. Clauses in grants that limit remainders
d. Clauses in grants that require interpretations that do not violate the rule against
perpetuities
With reference to #18, where would you find laws on the use restrictions on a tract of
land you wish to develop?
a. Local zoning ordinances
b. Private law in the deed restrictions
c. There are generally no restrictions on undeveloped land
d. Both a and b
Which of the following could an escrow agent give to a real estate agent who brought a
residential property closing to her agency?
a. Two seats to a Lakers game
b. A subscription to Architectural Digest
c. A thank-you note
d. A $25 Barnes and Noble gift card
e. All of the above would be permissible under RESPA
With reference to #38, who has title under a race/notice statute?
a. Grant
b. Dee Dee, if she records before Joe
c. Joe
d. Larry
Zack Peyton borrowed $398,000 from Fifth First Bank to purchase a new home. Zack
gave First Bank a mortgage on his home. The mortgage was recorded on January 3,
2004. Zack had made a down payment of $42,000. When Zack moved in, he purchased
an in-ground swimming pool from Paddock Pools for $35,000. Zack paid Paddock
$4,000 and Paddock financed the remaining amount for him, recording a mortgage for
$29,000 on February 26, 2004. Zack needed window coverings, landscape, and some
new furniture. Wells Fargo gave Zack a $150,000 home equity line of credit, secured by
a mortgage on Zack’s home for $150,000. Wells Fargo recorded the home equity credit
line mortgage on February 1, 2004. Zack, because of a bonus at work, did not draw on
the line of credit until June 10, 2005, using $25,000.
The economy went south somewhere around September 2008. The value of Zack’s
home dropped by almost 50%. Zack lost his job. He could no longer make his
payments. Fifth First Bank served Zack with a notice of foreclosure on November 1,
2008.
Suppose that the fact pattern is changed slightly and prior to the economy going south,
Zack sold his home to Melanie Knight for $450,000. Melanie paid Zack $52,000 and
assumed the Fifth First Bank mortgage. The property was transferred subject to the
Paddock mortgage but Melanie did not agree to assume the payments on the pool. Zack
failed to make the payments on the Paddock Pool. Paddock has begun foreclosure
proceedings on the home.
a. Paddock has no foreclosure rights because it is second in line in priority
b. Paddock has no foreclosure rights because it is third in line in priority
c. Paddock has no foreclosure rights because Melanie did not agree to assume the loan
d. Paddock has the right to foreclose on its mortgage
Ann Cohen signed a lease for an apartment that required that she pay the first month’s
rent of $2,200, the last month’s rent of $2,200, and a cleaning deposit of $350. Ann
wonders, ‘Isn’t it a violation of the law to require someone to pay almost $5,000 to
move into an apartment?’ Choose from the following your response to Ann
a. Ann is correct; under the URLTA, the landlord has exceeded the amount permitted
for tenant deposits
b. Ann is incorrect; prepaid rent is not considered a deposit and the first month’s rent is
due ‘“ the cleaning deposit is within URLTA limits
c. Ann is correct because the deposits required exceed one month’s rent, the URLTA
limit
d. Ann is correct because the amount required cannot exceed one month’s rent by more
than 10% under the URLTA
If an item is classified as a trade fixture
a. It is a fixture that passes with the land
b. It is personal property
c. It cannot be personal property
d. None of the above
With reference to #23, what interest does A hold?
a. 100%
b. 1/2
c. 1/4
d. 1/6
The limit on security deposits under URLTA is
a. One month’s rent
b. Two month’s rent
c. ½ a month’s rents
d. None of the above
Toll Brothers is a high-end home buyer. Toll Brothers also owns First Rate Mortgage
Brokers and United First Title Company. Each Toll Brothers home buyer is referred to
First Rate and United First for their mortgage and closing services once they have
signed their contract with Toll Brothers. The homebuyers are not told of the
relationships of Toll Brothers to First Rate and United First.
a. Toll Brothers has not violated RESPA because referrals are not prohibited under
RESPA
b. Toll Brothers has violated RESPA unless it can show that the fees it charges through
its wholly owned entity are less than the buyers could obtain elsewhere
c. Toll Brothers has violated RESPA
d. RESPA does not apply to builder referrals to mortgage and title companies
Which of the following types of land interests is not subject to the Rule Against
Perpetuities?
a. Executory interest
b. Contingent remainder
c. Vested remainder subject to complete divestment
d. None of the above
A and B are joint tenants. A conveys his interest to C. B passes away and leaves his
interest to his daughter, D. Who owns the property?
a. C and D
b. C
c. D
d. None of the above
A city ordinance prohibits same-gender couples from residing in designated
neighborhoods.
a. The ordinance is unconstitutional
b. The ordinance is unconstitutional if there are no housing alternatives for same-gender
couples
c. The ordinance is valid if passed pursuant to a master plan
d. None of the above
The very public divorce of Lorna Wendt, the wife of a GE executive, presented a test of
property rights in Connecticut. Mrs. Wendt was awarded $20 million of the $100
million her husband had accumulated as a GE officer. Mrs. Wendt claimed she gave up
her career as a music teacher in order to serve as a corporate wife. She had requested
half of the $100 million. What is the nature of a marital partnership? What public policy
issues are at stake in marital property divisions? Mrs. Wendt worked as a music teacher
to allow her husband to obtain his MBA. Does she have any rights with respect to that
investment?
The NE-1/4 of the NW-1/4 and the SE-1/4 and SW-1/4 have how many acres?
a. 40
b. 80
c. 160
d. 200
Ruth moves into one of Meryl’s Maine beach houses on an oral lease agreement that is
to run for 24 months. In Maine, leases that run for longer than one year must be in
writing to be enforceable. Meryl has accepted Ruth’s rent for two months.
a. Meryl and Ruth do not have a valid lease
b. Meryl and Ruth have a periodic tenancy
c. Meryl and Ruth have a tenancy for years because Meryl accepted the rent
d. Meryl and Ruth have a tenancy at sufferance
Describe how the U.S. Constitution applies to real estate transactions. How does it
relate to other sources of law?
Discuss the effect of divorce on a tenancy by the entirety.
Lowy was to purchase an apartment building from Pecora Developers. After entering
into a purchase contract, the parties executed escrow instructions with Nash Escrow
acting as closing agent. Both the contract and the instructions provided that Pecora was
to complete a wall around the parking lot before closing could take place. On the day of
closing, 30 feet of the wall had yet to be finished. Nash, upon urging and assurance
from Pecora that the wall would be finished by day’s end, closed the transaction. The
wall was never completed and Lowy has brought suit against Nash. What result?
With reference to #47, Sheila’s interest is void under the Rule Against Perpetuities.
Discuss the differences and similarities between a condominium, townhouse and
cooperatives.
Trade fixtures are personal property.
Explain why we need priority statutes for title to property.
Ralph has fenced in twelve extra acres of land on his farm. He did so because of a
mistake in the boundary survey. Ralph has planted the twelve acres every other year for
22 years. Discuss Ralph’s rights.
List the typical provisions included in a commercial lease.
List the differences between residential lease rights and commercial lease rights.