Brokers can be classified as lenders for purposes of Regulation Z disclosure
requirements.
A metes and bounds description requires an immovable starting point.
A township has 640 sections.
A deed transferring ‘the farm’ from the parent owners to the children who lived there
with them has a legally sufficient description.
Generally the warranty of habitability would apply to items such as broken door
buzzers.
The Fair Housing Act applies to insurers.
Once a building is sold, mechanics’ liens on the property are no longer valid.
Riparian states are those states primarily east of the Mississippi.
Property of the federal government is not subject to mechanics’ liens.
Turn’‘offs of services must be authorized in the bylaws to be a means of enforcement of
assessments.
Objects landing on another’s property can constitute trespass.
Deidre Watson has a home located in a residential area. Her home was constructed by
her parents in 1920. In her back yard she has chicken coops, fenced-in areas for her
horses, and a windmill. The area around her home has now been developed into a
subdivision and her neighbors have complained about the chickens and horses. What is
Deidre’s best defense if the city issues an order requiring the removal of the animals and
windmill?
a. That it is a taking by eminent domain
b. That she has a protected nonconforming use
c. That she is entitled to a variance
d. That the area is cumulative
Which of the following would not be found in state statutes?
a. Laws regulating the licensing of real estate brokers
b. Laws regulating the requirements for valid real estate contracts
c. ILSFDA
d. Laws governing partnership creation
Which of the following will not result in a PMSI in the creditor?
a. A store allowing a customer to purchase an air conditioner on credit
b. A farmer pledging his equipment as collateral
c. A loan for the purchase of a solar system
d. Both b and c
e. None of the above
An option
a. Can be revoked at any time
b. Must be supported by consideration to be valid
c. Both a and b
d. None of the above
Who has priority over a secured party under the general rules?
a. A perfected secured party
b. A heating system purchased with a credit card
c. A non’‘secured party
d. None has priority
An identity sheet is used
a. To compare criminal records of grantors
b. To reconcile different spellings of names or names with middle initials in the chain of
title
c. When there is a dispute over the physical identification of the grantor
d. When there are issues of adverse possession associated with a tract of land
Community property with right of survivorship
a. Is not permitted in community property states
b. Allows married couples to hold title to property in community property states with
right of survivorship
c. Allows married couples to hold title to community property and avoid probate
d. Eliminates joint tenancies in community property states
Developer Torreon Homes, building a subdivision of 300 homes, has been assessed an
impact fee that the town of Snowberry indicates for general improvements. What would
be the best basis for a challenge to the fee?
a. That such fees are unconstitutional
b. That impact fees must be for specific services that are needed because of the new
homes
c. That the impact fees cannot be assessed to individual companies
d. Either b or c
The doctrine of “moving to the nuisance”
a. Excuses the party creating the nuisance from any liability
b. Is inapplicable to residential developments
c. Applies only to public nuisances
d. None of the above
Which of the following apply to both residential and commercial leases?
a. ADA
b. Warranty of habitability
c. Both a and b
d. None of the above
An architectural control committee
a. Is created by the bylaws for a condominium project
b. Expires when the developer completes the condominium project
c. Has authority only over the common areas
d. Has no authority until owners approve its decisions
Ann Headstrom would like to have an office in downtown Orange, California.
However, there is no office space available and the ground level retail spaces have all
been taken by antique shops. What suggestions could you offer to Ann for obtaining an
office space downtown?
a. Purchase a column lot from one of the antique shop owners and build an office
b. Seek eminent domain from the city to get her business substituted for one of the
antique stores
c. Purchase an easement lot
d. Obtain a royalty interest
Which of the following is most likely to be considered a fixture in the sale of an
apartment complex?
a. Desk in the rental office
b. Refrigerators in each apartment
c. Office computer
d. None of the above
If a factory is ordered to be closed by a court because its emissions constitute a
nuisance, the court has awarded
a. Equitable relief
b. A monetary award
c. A remedy that is not available for nuisance
d. An unconstitutional remedy
Richard and Beth Kimball purchased a condominium for $280,000. The received a GFE
with total closing costs of $8,200. When they arrived on the day of closing they were
told that there closing costs would be $9,100. Which of the following is a true
statement?
a. RESPA does not apply to condominium purchases and closings
b. The actual closing costs exceeded the variation permitted from the GFE under
RESPA
c. Although the actual closing costs may have exceeded the amount of variation
permitted on the GFE under RESPA, the costs are permissible if spread across more
than one cost category
d. The actual closing costs are still within the variation range permitted under RESPA
When does a landlord have a right of access to the tenant’s premises?
a. For emergencies
b. For repairs
c. With permission
d. All of the above
Rod Webster is a licensed real estate agent. The state licensing board has discovered
that Rod embezzled earnest money deposits over the past three years. The state agency,
as an appropriate remedy,
a. May revoke Rod’s license
b. May prosecute Rod criminally
c. Has the authority only to levy fines
d. Can censure Rod, but has no authority to revoke his license
The following description appears in a deed:
“Lot 27 of Candlelight Estates IV, as per plat recorded in Book of Maps 30, page 80, in
the Office of the County Recorder of Holim County, Utah.’
a. The description is not legally sufficient to pass title
b. The description requires reference to a government survey to be legally sufficient
c. The description is legally sufficient
d. The description requires a reference to a street address to be legally sufficient
An implied easement does not pass with title to the land.
The warranty of habitability cannot be eliminated by agreement.
A lien creditor who has perfected his interest always takes priority over a secured party.
T A will can be revoked by interlineation.
Discuss the inadequacies and inaccuracies of the following deed. What other
information do you need?
QUITCLAIM DEED
For the consideration of Ten Dollars, and other valuable consideration, I or we, Mr.
and Mrs. William Smith, hereby grant/convey to Mr. and Mrs. Sam Jones all right, title or
interest in the following real property situated in Maricopa County, Arizona:
112 West Alumous Drive, Phoenix Arizona
Requiring a commercial landlord to abide by a non-compete clause in leasing properties
violates federal antitrust laws.
The Rule in Shelley’s Case is applied in all states.
The Secure and Fair Enforcement of the Mortgage Licensing Act of 2008
a. Requires mortgage lenders to be licensed
b. Requires mortgage brokers to be registered or licensed
c. Eliminates all subprime lending practices on home mortgages
d. Regulates the foreclosure of subprime loans
Proof of a PMSI is the burden of the creditor claiming priority.