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Small errors in lending disclosure statements are acceptable and will not result in the
loss of mortgage rights.
In a pure race jurisdiction, only bona fide purchasers can take good title when dual
claims are made.
An easement protecting a view is an example of an air right.
Baselines are placed every 24 miles.
The buyer is not entitled to a copy of the settlement statement.
All states allow subcontractors to collect the full amount of their lien.
The 1990 Clean Air Act was the first legislation to address acid rain problems.
In the deed of trust financing arrangement, the lender is the beneficiary.
A contract for the sale of real estate need not be in writing.
An ordinance requiring minimum square footage in buildings is an example of density
zoning.
A flow'‘down clause is a method of assuring payment to subs and suppliers.
RESPA applies only to FHA mortgage loan closings.
A variance must be approved by the Board of Adjustment.
A nonconforming use exception can be lost if the nonconforming activity is ended.
The failure to give notice of the right to lien can invalidate the lien.
Midwest Utilities, Inc., wishes to construct a power plant near Des Moines. Its proposed
coal-fired plant will have emissions. How does Midwest obtain an emissions permit?
a. Apply to the EPA
b. No new power plants can be constructed after the 1990 Clean Air Act was passed
c. Purchase emission rights from others
d. Get an exception to bubble emissions limits
Which of the following is not liable under CERCLA?
a. A lender who has restructured a loan for a debtor who has dumped waste on the
property that was mortgaged
b. Landowners
c. Transporters of toxic waste to a site
d. Operators of a toxic waste site
William Small purchased three lots located in the El Encanto subdivision in Tucson,
Arizona, from the Mullins. Small had the lots reconfigured so that he could build a
certain style and positioned home, but then changed his mind. The plat map still carried
the original lot lines. Over the course of 12 years, three homes and two swimming pools
along with patio home walls between each of the lots were added. Architects for the
homes used the plat maps. The result was that the homes, pool, and walls encroached on
the boundary lines of the other lots, according to the legal description Small had put on
the deeds. If the adverse possession statute in Arizona is 10 years
a. Small still has title to the original land because the boundary confusion is a mistake
b. Those who own the encroaching homes and pools have acquired title
c. The use is permissive and does not qualify for adverse possession
d. Small needs to be aware of the adverse possession before the 10 years begins to run
A creditor of a single joint tenant
a. Can foreclose on the entire parcel
b. Will have priority in the entire parcel
c. Can foreclose only on the joint tenant's interest
d. None of the above
Which element is required for a covenant to be enforceable?
a. The covenant had to touch and concern the land
b. The covenant had be a temporary restriction on the land
c. The covenant could be enforceable only against the grantor and the grantee
d. Both a and c
e. None of the above
Which of the following cannot be used to preserve the mix of a shopping center?
a. Covenants not to compete
b. Restrictions on types of assignees
c. Eviction of a non'‘breaching tenant to lure a better tenant
d. All of the above can be used
Karen Kimball is a clerk in the Mojave County Clerk's office. She is an excellent
worker, and the two major title companies always add $5 for each transaction as a tip
for her. These actions
a. are a violation of RESPA
b. are not a violation because she would do the work anyway
c. are not a violation because it did not involve the lender
d. None of the above
When does a landlord have a duty to maintain and repair?
a. Always for safety issues
b. Never, there is no such duty
c. Only if mandated by criminal statutes
d. Only if tenant asks
"To my daughter so long as she lives in Montana and if she ever leaves Montana, to my
son." The son holds
a. A possibility of reverter
b. A right of entry/power of termination
c. An executory interest
d. A contingent remainder
Under Article IX, filing for fixtures is
a. Generally local
b. With the secretary of state
c. Central
d. None of the above
A vacation lease
a. Is a time sharing interest
b. Is an actual lease
c. Is a condominium interest
d. None of the above
Which of the following is an accurate statement about rent control statutes?
a. They are unconstitutional
b. They are preempted by the Sherman Act
c. They are void
d. None of the above
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.
What happens to the debt remaining after the $220,000?
a. Zack is excused from all debt once the foreclosure sale has taken place
b. The creditors can pursue the debt due and owing through contract claims against
Zack with the exception of any residential antideficiency protections
c. Antideficiency statutes would shield Zack from any further collection from the three
creditors
d. The homestead exemption protects Zack from any further collection by the creditors
Which of the following forms of multi'‘unit housing requires a corporation?
a. Condominium
b. Co'‘op
c. Time'‘sharing
d. None of the above
With reference to #3, under a race notice statute, who has title?
a. A
b. B
c. C
Which of the following will defeat marketable title?
a. Zoning restrictions
b. Public utility easements
c. Claim of reversionary interest of an heir
d. Both b and c
e. a, b and c
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.
Where would the financing statement for Libraries have to be filed to be valid?
a. They are not required to be filed because they are purchased money security interests
b. They must be filed centrally with state records
c. They must be filed locally with the land records
d. None of the above
Lien notice statutes
a. Do not apply in residential construction
b. Have been determined to be unconstitutional
c. Require notification at the time of labor or materials prior to a lien
d. Apply only to those furnishing materials for the project
Which of the following existed at common law?
a. Implied warranty of habitability
b. Landlord's liability for common areas
c. Repair and deduct
d. None of the above
Croc Corner leases a small store located in the Cumberland Shopping Mall. Croc
Corner's owner has noticed a leak from the ceiling just above the entrance to his shop.
There is a constant drip that produces either a puddle or a small bucket full of water just
outside the Croc Corner door. Croc Corner's owner has notified the mall leasing agent
as well as the limited partnership that owns the mall. 'That's your responsibility, not
ours,' is the response of both the agent and owner. Which of the following statements is
correct?
a. If a customer slips and falls on the puddle outside Croc Corner, the owners of the
mall are liable for the customer's injuries
b. If a customer slips and falls on the puddle, both Croc Corner and Cumberland Mall
are liable for the injury
c. Only the building contractor who installed the faulty roof would be liable to the
customer
d. There is no liability because the customer is not an invitee
John is a member of the board for his condominium development. John has missed 8 of
the last 12 board meetings. The other board members have missed at least 50% of the
meetings. The board did not hire an accountant to review the financial reports of the
condo manager. Eighteen months after John took his position on the board, an
accountant was retained to examine the books of the condo development. The
accountant discovered that the manager had embezzled $250,000. Which of the
following statements is correct?
a. The board members can be held liable for the missing amount if the condo owners
are able to establish a violation of the business judgment rules
b. Condo board members are immune from liability
c. The business judgment rule does not apply to condo boards
d. The board members can be held liable only for gross negligence
Jane Sisnic hired a landscaping company to design and install landscaping in her
backyard. Jane's backyard consisted of about one acre, with one side bordering on her
neighbor's property and the remaining two sides bordering on national forest property.
Jane walked the chief designer for the landscaper around her backyard and showed him
what she thought her property boundaries were. The landscaping company began its
work and in the process of building the fence along Jane's neighbor's property destroyed
shrubs that were actually on the neighbor's property, cut down two of the neighbor's
trees, and damaged a portion of the neighbor's grass. Who is liable to the neighbors for
the damages?
a. Jane is liable because of her failure to verify the boundaries of her property
b. No one is liable '“ these things happen with neighbors
c. Because the acts were unintentional, they did not constitute trespass
d. The surveyor who originally marked the property is liable for the errors
Who is responsible for torts occurring within an individual condominium unit?
a. Association
b. Unit owner
c. There is no liability
d. None of the above
The spotted owl and lumber industry litigation in the Pacific Northwest involved which
federal statute?
a. The Endangered Species Act
b. The Forestry Initiative Act
c. The Small Business Liability Relief and Brownfields Revitalization Act
d. The Federal Environmental Pesticide Control Act
Which of the following is not a form of payment assurances for subs and suppliers?
a. Flow'‘down clause
b. Third'‘party payment
c. Retainages
d. All of the above are payment assurances
Anna and Bob bought their home for $250,000 in 2001. Since moving in they have
completed the following:
Their 2001 loan was at 10% and interest rates are now at 7%. Their home is now worth
$400,000. Their lender will refinance $320,000 (80% of market value). How much can
Anna and Bob refinance and still deduct all interest on their income tax?
Wall-to-wall carpeting in a residence is a fixture.
The rights of property owners in eminent domain proceedings are covered in the U.S.
Constitution.
Mr. and Mrs. Oaks are buying a lot in a mountainous area for a second home. The area
is undeveloped, but the seller has promised a golf course, paved roads, clubhouse, etc.
What steps should the Oaks take before buying a lot?
Discuss the differences and similarities between a life estate and a fee simple absolute.
