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The Rule in Dumpor's Case provides that if the landlord agrees to one assignment, he's
agreed to all assignments.
The remaining joint tenants can recover damages from a joint tenant who transfers his
interest and severs the tenancy.
Interim zoning is unconstitutional.
Assessments of real property cannot consider environmental clean-up costs.
A subcontractor can retract a bid used in a general bid at any time.
Zoning regulations cannot control First Amendment rights.
Real estate purchase contracts can have only one condition precedent '“ that of
financing.
The permanent lender and the construction lender are the same parties in the
construction project.
Any proposed or modification use of common areas must be approved by the
condominium association.
Construction mortgages always have priority over mechanics' liens in beginning
construction states.
REIT investors cannot take REIT losses from their personal income.
Because a landowner owns the airspace above the land, air travel through that airspace
is prohibited.
In order to establish misrepresentation, the buyer must show the statements were a
material part of the decision to buy.
Impact fees are paid by developers to help the federal government pay for government
agencies responsible to regulate them.
Title insurance endorsements can provide coverage for boundary disputes.
Giving the amount of any payment in an ad is an example of a triggering term requiring
further disclosure under Regulation Z.
The following language appears in a mortgage: "In the event the buyer sells, transfers
or assigns the property described herein as security for the above'‘referenced underlying
note, the full balance of the loan then due and owing, including principal, shall become
due." The language is an example of
a. An acceleration clause
b. A balloon payment clause
c. A due'‘on'‘sale clause
d. An Anaconda clause
e. None of the above
For an act of trespass to occur
a. The trespasser must have entered the property with his body
b. The trespasser must have caused some damage
c. The trespasser must have committed some other wrong
d. None of the above
The basis of a property
a. Excludes depreciation
b. Is the sale price
c. Is its fair market value
d. None of the above
In 2008, Capital Drywall and Old Fort supplied materials to Complete Construction &
Demolition, Inc. (Contractor) for the reconstruction of a hotel on U.S. Highway 31 in
South Bend, Indiana. Neither Capital Drywall nor Old Fort received payment for those
materials. The Contractor went bankrupt. Capital filed a lien on April 25, 2008. Old
Fort filed a lien on September 11, 2008. Old Fort is owed $160,000, Capital is owed
$140,000. There is $156,000 left to distribute to unpaid lienholders. How much will
each receive under the common law rule for distribution of funds to lienholders?
a. Capital receives $140,000 and Old Fort receives $16,000
b. Capital receives $78,000 and Old Fort Receives $78,000
c. Capital receives $72,800 and Old Fort receives $83,200
d. Capital receives $70,000 and Old Fort receives $80,000, with the $6,000 being split
between them
To which of the following does the ILSFDA apply?
a. Sales of homes in an existing subdivision
b. Sales of undeveloped land
c. Sales of condominiums
d. Applies to all 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 is the date for the priority timing of the Wells Fargo mortgage?
a. February 1, 2004
b. June 10, 2005
c. January 3, 2004, because the mortgages all date back to equal footing
d. None of the above
Classify the following laws according to their sources:
a. Internal Revenue Code
b. Judicial interpretation of rent statute
c. Interstate Land Sales Full Disclosure Act
d. Uniform Partnership Act
e. Broker licensing provisions
Which of the following is not prohibited by the Fair Housing Act?
a. Refusing to sell a home in a Hispanic neighborhood to a Caucasian family
b. Enforcing age restrictions in an all'‘adult retirement community
c. Refusing to show a home to an interested buyer because the buyer is Caucasian
d. All of the above are violations
RESPA
a. Prohibits compensation to real estate brokers solely for recommending a title
company
b. Requires advance estimates of settlement service charges
c. Limits the amounts required to be deposited in escrow
d. Requires the use of a form settlement statement
e. All of the above
d A master plan
a. Is the basis for zoning regulations
b. Is developed by the Planning Commission
c. Cannot be varied once it is in place
d. Both a and b
In an open listing, if the seller finds the buyer
a. The broker still gets the commission
b. The seller is not required to pay a commission
c. Neither a nor b
d. Both a and b
Patti Sclerera is a broker who has listed 3.3 acres of commercial property for John
Symington. Patti owns the majority of the stock of a corporation, Children, Inc., that
develops, manufactures and sells educational toys. Patti thinks the land would be a good
location for a new factory. Patti is a member of the board of Children, Inc. and knows
the board is looking for land for the factory. If Patti arranges the sale
a. She is required to disclose her stock ownership and board membership
b. She is only required to disclose her board membership
c. She is only required to disclose her stock ownership
d. She has no disclosure requirements since she is not buying the land
e. None of the above
Which of the following is not grounds for license suspension or revocation?
a. Conviction for felonious burglary
b. Violation of fair housing laws
c. Suit by a buyer for misrepresentation
d. Commingling of funds
e. All of the above
In a question of priority between a secured creditor and a subcontractor, the rule is
a. First to record, first in right
b. If the sub gives preliminary notice before the secured creditor files, the sub has
priority
c. First in time, first in right
d. None of the above
Mayer wrote Jackson and offered to sell Jackson a building for $50,000. The offer
stated it would expire 30 days from July 1, 2010. Mayer changed his mind and does not
wish to be bound by his offer. If a legal dispute arises between the parties regarding
whether there has been a valid acceptance of the offer, which of the following is
correct?
a. The offer cannot be legally withdrawn for the stated period of time
b. The offer will not expire prior to the 30 days even if Mayer sells the property to a
third person and notifies Jackson
c. If Jackson phoned Mayer on August 1 and accepted the offer, it would create a
contract, provided he had no notice of the withdrawal of the offer
d. If Jackson categorically rejects the offer on July 10, Jackson cannot validly accept
within the remaining stated period of time
Which of the following constitute offers?
a. Calls for bids
b. Subs' bids to generals
c. Generals' bids to owners
d. Both b and c
e. None of the above
Wells Fargo is foreclosing on its June 2007 mortgage (recorded on June 17, 2007) on
Jordin Levin's home because she has been in default on her mortgage with Wells Fargo
for over six months, from June 1, 2009 through December 31, 2009. Jordin had Classy
Closets install cupboards in her garage just two months prior to the foreclosure. Classy
Closets filed a financing statement on November 17, 2009. Jordin owes Classy Closets
$2,300 for the cabinets. When Classy Closets is notified of the foreclosure on January
17, 2010, Classy Closets arrives at Jordin's home and removes the cabinets. The
removal caused some damage to the garage floor and also left some holes in the drywall
that require repair. The total cost of repair is $158. Wells Fargo says the value of the
home is reduced by $2,458 because of Classy Closets' removal of the cabinets and the
damages.
Assuming Classy Closets is entitled to remove the cabinets, what obligations would it
have to Wells Fargo?
a. No obligations because it had priority
b. The obligation to pay $2,458 for the damages caused to Wells Fargo
c. No obligations because Jordin is responsible for any damages to Wells Fargo
d. The obligation to pay $158 to Wells Fargo
Under Section 8 housing policies, which of the following have been upheld by the
courts?
a. Eviction of a tenant for criminal activity
b. Eviction of a tenant for criminal activity by a family member
c. Eviction of a tenant for criminal activity by a guest
d. All of the above
A, B and C are tenants in common. A owns 2/3 interest. B and C own 1/6 each. C has
died leaving his interest to his daughter, D. B has transferred his interest to H. The
property is now owned as follows
a. A owns the full amount
b. A '“ 2/3, H '“ 1/3
c. A '“ 2/3, D '“ 1/6, H '“ 1/6
d. A '“ 5/6, H '“ 1/6
A low'‘income housing credit is available
a. Only to those who reside in such housing
b. At the same rate for federal and state housing
c. Only if the property is in compliance with codes
d. None of the above
Most states no longer recognize freehold estates.
A solar easement is an example of an affirmative easement.
Federated Group, Inc. has just purchased a site for its corporate headquarters. After the
contract is signed but before close of escrow, Federated learns of toxic waste claims
pending against the seller by surrounding landowners. Must Federated go through with
the sale?
Priority between an unperfected secured party and an unrecorded mortgage is first to
file wins.
A hot air heating system is probably an example of a fixture.
An easement that prevents interference with solar panels is a negative easement.
