A street address coupled with a lot number and attached plat map is a legally sufficient
address.
Economic development is a recognized public purpose for purposes of a taking of
private property.
The escrow agent bears the responsibility for verifying the validity of check payments.
To be valid, a nonconforming use must be in existence at the time zoning regulations
are adopted.
The right to a nonconforming use can be lost through abandonment.
A performance bond requires the guarantor to complete a project if the covered
contractor withdraws.
The new laws on appraisals allow lenders to have a say on the final appraisal figure.
Depreciation is subtracted from the cost of the property in determining the adjusted
basis.
The Financial Institutions Reform, Recovery and Enforcement Act of 1989 regulates
appraisals and appraisers.
Tacking allows cumulation of time of uses by adverse possessors.
An offer that provides, ‘This offer good only until April 13, 2013’, cannot be revoked
prior to April 13, 2013.
A bid bond will compensate an owner for damages if a contractor fails to perform at bid
price.
State and local government properties are generally exempt from property taxes.
Joint tenants must have equal interests in their property.
The ILSFDA applies only to multi-unit housing.
A tenancy in partnership
a. Is most like a joint tenancy
b. Is most like a tenancy in common
c. Requires unity in time
d. Both a and b
e. None of the above
Which of the following acts controls point sources?
a. Clean Air Act
b. Toxic Substances Control Act
c. Clean Water Act
d. All of the above
The Fair Housing Act
a. Is part of the Civil Rights Act
b. Applies only to lenders
c. Does not apply to insurers
d. All of the above
A commercial tenant’s display counters are bolted to the floor of his leased store. The
counters
a. Are trade fixtures and belong to the tenant
b. Are trade fixtures and belong to the landlord
c. Are personal property belonging to the landlord
d. Cannot be removed when the lease terminates
Intestate succession
a. Is the inheritance of property by heirs when no will is left by the deceased
b. Is unconstitutional
c. Is applied prior to creditors’ payments
d. None of the above
With respect to #37 above, what if the agreement between Ms. Demming and Ms.
Underwood were oral?
a. An oral agreement for a commission is generally unenforceable
b. There is no principal/agent relationship if the agreement is oral
c. An oral agreement for a commission is enforceable if the broker/agent has relied
upon it
d. Ms. Demming would owe a reasonable commission, but not necessarily 7%
Which of the following types of estates requires action on the part of the grantor before
the estate terminates?
a. Life estate
b. Fee simple determinable
c. Fee simple subject to a condition subsequent
d. Tenancy for a period
Which of the following is not a party to the escrow instructions?
a. Buyer
b. Seller
c. Escrow agent
d. None of the above
The Americans with Disabilities Act access provisions
a. Do not apply to commercial properties
b. Do not apply to tenants
c. Must be absorbed by the landlord
d. None of the above
Acceptance
a. Is not required for a valid gift
b. Is required for a valid conveyance by deed
c. Is set aside for gifts in contemplation of death
d. None of the above
Under the Uniform Marital Property Act, which of the following is not a requirement
for a valid premarital agreement?
a. Voluntary
b. Can be used only by a putative spouse
c. Independent advice
d. All of the above are requirements
“To A and the female heirs of her body” is an example of
a. A fee simple subject to a condition subsequent
b. A fee simple determinable
c. A fee tail estate
d. A life estate
e. None of the above
On May 1, 2005, Cynthia Hendrix bought her home and First Bank recorded its
mortgage. On June 24, 2007, Cynthia sold her home to Stanton Gulbrandsen for
$250,000. At that time, Cynthia’s mortgage was $225,000. Stanton assumed Cynthia’s
mortgage and gave Second Bank a second mortgage for $225,000. Second Bank did not
record its mortgage. On October 12, 2009, Stanton sold the home to Derek Bolger for
$275,000. Bolger took the property subject to the previous mortgages and executed a
$275,000 mortgage to Third Bank. Third Bank recorded its mortgage on October 18,
2009. Third Bank knew of the Second Bank mortgage.
Who is liable on the Second Bank mortgage?
a. Cynthia
b. Stanton
c. Derek
d. Both b and c
“To A for life, then to B, if B is married.” B has
a. A contingent remainder
b. A life estate
c. A vested remainder
d. A vested remainder subject to complete divestment
Which of the following require due process to be valid?
a. Tax sales
b. Foreclosure
c. Eminent domain
d. All of the above require due process
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.
What would happen if Living Entertainment filed its financing statement centrally?
a. It would be invalid
b. Living Entertainment would be perfected and secured on the chairs and the
equipment
c. Living Entertainment would have filed correctly and would be protected for the full
amount financed
d. None of the above
Evaluate this statement for its accuracy: ‘All landowners assume the risk of changes in
the use of surrounding property.’
With regard to #66 above, suppose that Louis and Karen removed their water heater,
kitchen cupboards, and toilets. What can the mortgagee do?
a. Nothing, because they still had title to the property and could take these items
because they belonged to them
b. Report the Morozes to local authorities for prosecution under the walkaway criminal
statutes
c. Nothing, because the mortgagee does not own the property
d. Declare bankruptcy for the Morozes to recover the items
Compliance of the leased premises with the ADA is the responsibility of the landlord.
Mark Clemens is purchasing Daisy Gatsby’s home for $250,000. Daisy has a mortgage
for $150,000 at 10.9% (obtained in 1980). Current loan rates are 14% and Mark has
only $25,000 for a down payment. Mark wants to know if there is a financing method
other than obtaining a new loan for $225,000 at 14%.
Give three examples of private law.