A creditor of a joint tenant has a lien on the entire property.
A co-op owner cannot be removed from his or her unit through eviction processes.
Homeowners’ associations cannot promulgate rules that are not part of the CC&Rs.
A patio home is a form of condominium.
Hybrids still require associations and CC&Rs.
Calls for bids are offers.
A nonconforming use must continue in perpetuity.
Planes cannot fly over property owned by others without an easement.
Most states follow the Doctrine of Ancient Lights.
Most courts recognize oral change orders in construction contracts.
Cumulative zoning is unconstitutional.
In an exclusive right’‘to’‘sell listing, a sale by the owner alleviates the duty to pay the
commission.
A subchapter S corporation is a REIT.
MERS cannot hold a valid mortgage for purposes of foreclosure.
Multiple offers carry no dangers for the seller.
Technological infeasibility is a defense to a Clean Air Act violation.
Tenants in common must own equal shares.
Equitable servitudes pass with the land.
Corporate property is not subject to a mechanics’ lien.
Because government-backed mortgage loan standards were loosened during the growth
of the subprime market, conventional lenders adopted the same standards.
Which of the following best summarizes a landlord’s duty with regard to mold in leased
premises?
a. The presence of mold in leased premises is not an issue of habitability
b. Landlords generally must follow statutory disclosure requirements on detecting and
reporting mold
c. Landlords are generally required to conduct mold inspections at least annually
d. Tenants are responsible for detection and clean-up of mold once the lease has begun
and the tenant takes possession
A predatory loan
a. Is defined by federal interest rate limitations
b. Is a violation of Regulation Z
c. Does not include the right of foreclosure when secured by a mortgage
d. None of the above
The Superfund is
a. Tapped by Congress
b. Used for air pollution problems
c. Available by private citizen suit
d. A trust fund
e. None of the above
Randy’s Brake Service has been located on the same corner in Mesa, Arizona for 48
years. When Randy’s father opened the business, the area had no zoning. When zoning
laws were passed in 1969, the area in which Randy’s was located was zoned for retail
sales but not for industrial. Car repair services are considered industrial uses under the
master zoning plan. What are Randy’s rights?
a. Randy will not be able to continue to run a car repair business
b. Randy’s business is grandfathered in as a nonconforming use
c. Randy can challenge the zoning as an unconstitutional taking
d. The city’s master zoning plan must allow for all existing uses
Losses from passive investment activity
a. Are limited to $25,000
b. Are limited to passive investment activity income
c. Are eliminated on real estate investments
d. None of the above
“To my daughter provided that the property is used for her primary residence” is a
a. Fee simple subject to a condition subsequent
b. Fee simple determinable
c. Fee tail
d. Periodic tenancy
Which of the following estates is freehold?
a. Fee tail
b. Estate for years
c. Periodic tenancy
d. None of the above
On February 7, 2010, A entered into negotiations with B for the purchase of B’s farm.
After consulting with an attorney and having the property appraised, B agreed to sell for
$750,000. A and B agreed in writing that in exchange for $1,000 then received from A,
B would hold the offer open for nine months. After six months, A wrote B that he was
no longer interested in buying the farm. Several days later, A received notice from B
that he was negotiating with C to sell the farm for $950,000. A immediately called B,
who suggested that if A would agree to pay $875,000 and conclude the deal within 10
days, then B would still be willing to sell to A. A protested that B was driving a hard
bargain, but finally agreed by telegram that evening to buy the farm for $875,000 within
10 days. A purchased the farm as agreed and then sought to recover $125,000 from B or
alternatively to rescind the purchase (in other words, get out of the contract). What
result and why?
During the subprime mortgage boom, what was the amount of loan Fannie Mae would
allow on home mortgages as a requirement for its purchase of the mortgage loan?
a. 80%
b. 90%
c. 95%
d. 97%
The maximum amount of home equity debt is
a. $100,000 ($50,000 for marrieds filing separately)
b. Fair market value of the home less acquisition debt
c. The amount of non’‘acquisition debt
d. The least of the three above
Tacking
a. Is the process of removing minerals pursuant to a profit
b. Cannot be used in easements by prescription
c. Requires privity
d. None of the above
Smith purchased a home before he married. He and his spouse now reside in the home.
The home is
a. Community property
b. Separate property
c. Held in joint tenancy
d. None of the above
Joan offered to buy John’s house for $250,000. John responded, ‘I accept, for $250,000
and you pay all closing costs.’
a. Joan and John have a contract for sale at $250,000
b. Joan and John have a contract for sale at $250,000 with Joan paying closing costs
c. Joan and John do not have a contract
d. None of the above
Jim Todd is selling his condominium in Vail. He is listing the property with his broker
friend, Sam Clemens. Jim and Sam have agreed (in writing) that if Jim finds a buyer,
Sam will not take a commission. Jim has also agreed that he will not use other brokers.
Jim and Sam have
a. an exclusive right’‘to’‘sell listing
b. an exclusive agency
c. an open listing
d. None of the above
E and R sign a mortgage agreement and note whereby E agrees to advance $45,000 to R
in three installments if R requires them. E records the mortgage on June 1, 1994 and
makes the first advance on August 1, 1994. R has failed to pay a mechanic, who filed a
lien on July 27, 1994.
a. The mechanic has priority
b. E has priority
c. Both share equal priority
d. None of the above
What is the Superfund?
a. A fund for purposes of enforcing the permit sales under the bubble concept
b. The same things as the Oil Spill Liability Trust Fund
c. A fund established for purposes of cleaning up areas in which there has been
dumping of toxic waste
d. A reimbursement fund for victims of asbestos exposure
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 Tommy moves into Zack’s house and begins getting notices from Paddock and
Wells Fargo about amounts due from Zack’s period of ownership.
a. Tommy is required to pay those amounts because what he paid for the house did not
satisfy what was due to all the creditors
b. Tommy needs to sign a mortgage with these creditors to renew their mortgages in the
property
c. Tommy is not liable to these creditors for what Zack owed
d. Paddock and Wells Fargo now have their right to foreclose on the property
The Mortgage Disclosure Improvement Act
a. Replaces TILA for disclosure purposes on mortgage loans
b. Requires that mortgage terms be given to home mortgage borrowers at least seven
days prior to closing
c. Eliminates all subprime lending practices
d. Is superseded by state laws on mortgage lending
Stacy Harris owned a condominium in the 4215 Harding Road Condominiums. Her
fellow condo owners complained about grossly unsanitary conditions in Harris’s unit
and resulting extremely offensive odors that emanated from her unit into common
areas. Despite warnings and fines, Ms. Harris did not clean up her apartment. The
association brought suit to have the condo unit sold and asked for $116,037.77 in fees
and attorney’s fees. Which of the following is correct?
a. A condo cannot be sold to satisfy fines assessed for rules violations
b. An association cannot take back title to a unit without the consent of the owner
c. The association can bring a foreclosure action for noncompliance and to collect
unpaid fees
d. The action by the association violates the due process clause
Commercial leases in existence before the property is constructed
a. Are valid leases
b. Are void
c. Are voidable
d. None of the above
A and B own property as joint tenants with right of survivorship. B dies and in his will
disposes of one’‘half of the joint tenancy property to his niece. The testamentary
disposition is
a. Ineffective
b. Effective so long as it is an equal share
c. Illegal
d. None of the above
With reference to #13, which of the following statements is true?
a. Alex’s rent can be increased at any time
b. Alex would be liable for damages if he left the apartment before the end of six
months
c. Alex cannot withhold rent if there is no water in the apartment
d. All of the above are correct
Determine whether the items would be fixtures or personal property.
Partitions installed by a tenant in an office building for purposes of creating cubicles for
employees
a. Fixture that remains on the property and belongs to the landlord
b. Personal property of tenant
Phyllis was the listing agent on Lou’s home. Phyllis was able to find a young couple to
buy Lou’s home for his asking price. Just before the closing on the home, Lou changed
his mind and refused to sell the property. The young couple had a loan and their down
payment was already on deposit with the escrow company. Which of the following is
correct regarding Phyllis’s commission?
a. Lou does not owe the commission to Phyllis
b. Lou owes only one-half of the commission
c. The down payment will be used to cover the commission
d. Lou owes the commission to Phyllis
With reference to #22, Lee and Carol will owe how much in capital gain taxes on the
sale of their home?
a. $100,000
b. $250,000
c. $275,000
d. -0-
An easement by necessity terminates when the necessity terminates.
Discuss the purpose of the baseline, parallel and meridian grid system.
Steve Thompson has made an offer to purchase a home on a short sale from First Third
Bank for $120,000. The bank has responded by e-mail indicating that it will consider
the offer. At the end of the e-mail is this language:
E-mails and the language in e-mails are not considered offers or acceptances for
purposes of formation of a contract. First Third Bank is not bound by any e-mail
communications regarding the purchase or sale of property. All offers and acceptances
must be handled through the bank’s sales office.
Later Steve e-mails the bank back and reiterates his offer. A bank employees e-mails
back, ‘We have your offer and are processing the paperwork now. It is accepted.’ Which
of the following is correct?
a. Steve has a contract for the purchase of the home at the time the bank employee sent
the e-mail
b. Steve does not have a contract for the purchase of the home
c. Steve has a contract for the purchase of the home at the time he receives the e-mail
from the bank employee
d. Steve has a contract when the sales office calls him to tell him the bank is accepting
After foreclosure, the mortgagor loses all rights in the property.