Some state laws now place time limits on when lenders can begin foreclosures on home
mortgages.
“Due’‘on’‘sale” clauses are valid in residential mortgage loans.
Developers are responsible for pre-conversion expenses.
Legislators enact the rules and regulations agencies use.
Misrepresentation, to be grounds for rescission, must be shown to have been fraudulent.
All-adult covenants in residential developments have been determined to meet
constitutional standards regardless of community housing issues.
A bargain and sale deed is the same as a quitclaim deed.
Planned unit developments can take the place of zoning restrictions.
The sale of limited partnership interests is not considered the sale of securities.
A bargain and sale deed has no warranties.
A broker has a duty to disclose his interest in a partnership competing with the seller.
A developer can amend deed restrictions up until the final lot or home is sold.
John has just built a lovely home in West Los Angeles. Being ecologically minded, John
has installed solar panels on his roof (for heating the water for his home and for heating
his pool and spa). After John has lived in the home for eleven years, Tom builds a
three’‘story home on the lot behind John’s and since construction, John has not had even
a lukewarm bath ‘“ Tom’s three’‘story house blocks John’s panels. There are no relevant
deed restrictions, zoning ordinances or statutes. What are John’s rights?
The warranty that the title to the property is free from encumbrances is given in which
deed?
a. Warranty deed
b. Quitclaim deed
c. Sheriff’s deed
d. None of the above
Under which of the following circumstances can a mechanics’ lien be invalid?
a. Lack of license where required
b. Breach of contract
c. Lack of property interest in contracting party
d. a, b and c
Jane Goodall is moving from New York to Vermont. Jane is a licensed real estate agent
in New York and wants to know the requirements for becoming a licensed agent in
Vermont. Where will Jane be able to find the Vermont requirements?
a. In the United States Code
b. In the Code of Federal Regulations
c. What is required will depend on which real estate firm Jane works for, so she needs
to look at their private rules
d. Vermont state statutes
A ‘pick-a-pay’ loan
a. Is now illegal
b. Is a loan that allowed the borrower to determine the monthly payment for an initial
period in the mortgage loan
c. Is a usurious loan
d. Were not permitted in Fannie Mae mortgages
A grantor/grantee index
a. Is organized by tracts of land
b. Is organized in alphabetical order of both grantor and grantee name
c. Is available only under the Torrens system
d. Is the same as a tract index
e. None of the above
Racially restrictive fee simple defeasibles are
a. Enforceable private property rights
b. Violative of the Fourteenth Amendment
c. Violative of the Fourteenth Amendment but holders are entitled to compensation for
their non’‘enforcement
d. None of the above
What is the maximum time after the death of a decedent for a posthumous heir to be
born in order to qualify as an heir for inheritance?
a. 8 months
b. 8.5 months
c. 9 months
d. 10 months
Cumulative zoning is zoning which
a. Includes interim zoning
b. Permits higher uses in lower’‘zoned areas
c. Permits nonconforming uses
d. None of the above
NIMBYs are
a. A form of general zoning plans
b. Exceptions to the zoning plans
c. Landowners who object to the location of businesses or projects near their properties
d. None of the above
Which of the following is not in the closing cost estimate?
a. Appraisal fee
b. County taxes
c. Pest inspection fee
d. Loan application fee
e. All of the above are included
Suppose that First Interstate had loaned O money for the purchase of a Solar Water
Heating system. O purchased the system on February 1, 2009. He installed the system
on February 9, 2009. First Interstate filed a financing statement on February 8, 2009.
Who has priority in the solar system?
a. First Federal
b. First Interstate
c. The Solar Company
d. None of the above
How was the Rivers and Harbors Act of 1899 used in the pollution battle?
a. To prevent dumping into waterways
b. To prevent the transportation of toxic substances without a permit
c. To prevent all discharges
d. None of the above
In an equal footing state, property owner O owes the following:
$160,000 ‘“ Mortgage Lender, recorded January 1, 2009
$40,000 ‘“ Foundation company, began construction December 30, 2007
$50,000 ‘“ Framing company, did framing January 31, 2008
Property owner O has sold the property and there is $160,000 left to be distributed.
How should this amount be distributed?
a. 160/250, 40/250, and 50/250 x $160,000
b. 40/250 and 50/250 x $160,000 with mortgage company taking nothing
c. $160,000 to the mortgage lender
d. None of the above
In interpreting a statute, a court will consider
a. The legislative intent
b. The words chosen
c. The factual circumstances
d. The vote margin for passage
e. a, b and c
Xenon Corporation discovered that the soil beneath its headquarters’ parking lot was
contaminated with hazardous waste. At the turn of the century, the land had been used
by a paint factory. Chemicals in production were probably dumped outside the factory
that once stood there. Which of the following is correct in terms of CERCLA liability?
a. Xenon is not liable if it did not know about the factory
b. Xenon is not liable if it can show that intervening uses that were non-toxic did not
raise attention to a possible issue
c. Xenon is liable for the cost of clean-up
d. The paint factory owners are not liable because the statute of limitations has expired
The Stonehurst Development, a planned community, stalled after the 2008 market
collapse. The developer has been unable to build it out. The lots are filled with weeds
and the private streets are in disrepair. The city of Bedford, where Stonehurst is located,
has offered to take over care of the streets and provide city crews for clean-up of the
lots if the developer will complete started homes and renew sales efforts. Which of the
following is correct?
a. A city cannot provide benefits to a private developer
b. A city can provide benefits to developers where there is a public welfare issue
c. A city cannot provide the benefits to a private developer without going through some
kind of process for obtaining a benefit from the developer for the citizens
d. The city’s efforts are eminent domain
Smith and Jones entered into a contract in which Smith, as seller, promised to deliver
the property to Jones “free from all violations of zoning ordinances.” To deliver
marketable title, Smith must
a. Clear all existing violations of zoning ordinances
b. Clear zoning violations that are major and likely to be cited by city officials
c. Clear only those zoning violations greater than those on surrounding properties
d. None of the above
Bill and Ramona Blackhawk own a cabin in Forest Lakes, Arizona. They purchased the
cabin in 1992 from Bud and Naomi Kelsoe, who had purchased the lot in 1975 and built
their cabin on it in 1979. The Blackhawks used the cabin for long weekend
get-aways’“using the cabin about 14 times each year. On Memorial Day weekend in
1993, Ramona noticed a truck and trailer (mobile home) traveling across their lot to
another lot. When Bill and Ramona confronted the driver, he responded, “Bud and
Naomi have let me drive my trailer through here each Memorial Day and Labor Day
since 1977.” The period for adverse possession in Arizona is 10 years.
a. The driver has acquired an easement by prescription.
b. The driver has a license which can be revoked.
c. The driver has a license which passed with the land.
d. None of the above
Prepaid rent cannot be required under the URLTA.
Which of the following is not a remedy available to homeowners’ associations for
violations of CCRs and rules?
a. Fines
b. Liens
c. Foreclosures
d. All of these remedies are available to homeowners’ associations for violations
With respect to #39, suppose Alice just sold her home 9 months after buying it to
Robert Woolf. Which of the following describes Robert’s rights?
a. Robert does not have privity of contract and cannot recover for the dry wall issues
from Talman
b. Robert can recover from Talman for damages from the drywall issue
c. Robert only has rights against the Chinese manufacturer
d. Robert will just have to live with the drywall issue or fix it himself
What is not required for due process to be satisfied on real property assessments?
a. Notice of valuation
b. Hearing
c. Court hearing
d. All of the above are required
Geraldine Waters rented an apartment at the Bedford Arms complex for a rent of $1,000
per month. Geraldine was require to pay a $1,000 security deposit when she moved into
her apartment. Geraldine’s lease was to run for six months, from January 1, 2010
through June 30, 2010. On March 31, 2010, Geraldine notified the landlord that she is
leaving her apartment.
a. Because the lease was less than one year, Geraldine is free to end the lease at will
b. Because she paid a security deposit, Geraldine is free to leave the lease at any time
c. Geraldine has breached her lease agreement
d. Geraldine was a periodic tenant and can leave the lease with notice
An appurtenant easement can exist only between adjoining landowners.
In an express easement by reservation, the original land owner retains that portion of
the property through which the easement passes.
A PMSI recorded on January 2, 2009, for an air conditioner affixed on December 31,
2008, takes priority over an existing mortgage recorded on June 1, 2001.
“To A for ten years” is an example of a life estate.
The Rule Against Perpetuities applies to executory interest.
Both the fee simple determinable and the fee simple subject to a condition subsequent
are fee simple defeasible estates.
Actor Heath Ledger, who died of an overdose, has one of the most complicated
probates the U.S. courts have seen. One issue the probate court is handling is that Mr.
Ledger never revised his will after his daughter was born. There are no provisions for
her in the will. The problem is complicated by the fact that Mr. Ledger never married
the mother of his daughter, actress Michelle Williams. However, Mr. Ledger and Mr.
Williams did live together as a couple in Brooklyn from the time before their daughter
was born and for the first two years of her life. Which best describes how Mr. Ledger’s
estate will be distributed?
•It will be distributed according to the terms of the will unless paternity can be
established
•His daughter will be his sole and exclusive heir
•The will is invalid because the birth of his daughter served as a revocation by
operation of law
•The court will distribute one-half of Mr. Ledger’s property to his daughter and the
other half to his parents, who are still living
•
T A codicil is a formally executed addition to a will.