To deliver marketable title, the seller must deliver property to the buyer that is free from
mortgages and other liens.
Master-planned communities have experienced more blight from foreclosure than other
types of developments.
The superfund is available to private citizens through suit.
A tenancy by the entirety can be severed by either spouse.
Psychological disclosure statutes cover issues such as AIDS and murder on the
property.
Noncumulative zoning permits higher uses in lower’‘zoned areas.
Cities are using eminent domain to solve the problems created by foreclosure ghettos.
The right to flight over property is given only by easement.
Prenuptial agreements are void.
Separate legal counsel for each party is a requirement for the validity of a prenuptial
agreement.
Regulation Z is inapplicable to second mortgages on residential property.
Title insurance protects against the exceptions listed.
Precedent from one federal district or circuit cannot be used in any other federal district
or circuit.
Some states do not require affirmative disclosure of the presence of AIDS’‘positive
dwellers in a listed property.
Unimproved land sites must have prior document approval by HUD.
Flowing Stream Townhouse Development’s homeowners’ association has adopted a rule
that no owner can sell or lease his or her unit to a Tier 3 registered sex offender. Alice
Strom is a Flowing Stream owner who has sold her townhome to a registered Tier 3 sex
offender. The homeowners’ association board has refused to allow the buyer to move
into his townhome and has obtained a court injunction prohibiting his taking occupancy.
What standard will the court use in reviewing the actions of the association board?
a. The business judgment rule
b. Whether the rule is a breach of privacy
c. Whether the rule is wise
d. Whether the rule is a common one for homeowners’ associations
Refer to question #29. The document
a. Is an easement appurtenant
b. Is an easement in gross
c. Is a prescriptive easement
d. Cannot convey any interest
Which of the following is not a duty of the escrow agent?
a. Duty of care
b. Fiduciary duty
c. Duty to follow instructions
d. All of the above are duties of the escrow agent
The city of Norwood, Ohio, has an area that is somewhat commercial and somewhat
residential. The area is an older area and the city of Norwood had developed a plan to
revitalize the area. A private developer went in and purchased many of the small
businesses, but one small business owner refused to sell. The city began eminent
domain proceedings to take the property. The small business owner says that the city is
taking away his property just to give it to another business that the city likes better. If
the small business owner challenges the taking what will be the result?
Revocation of a will
a. Can occur through destruction
b. Can occur partially through divorce
c. Both a and b
d. None of the above
Which of the following is true regarding the establishment of a public purpose?
a. A narrow interpretation is given to the term
b. There must be a public road, park, school or other facility involved
c. Private property cannot be affected
d. None of the above
Harbor Builders began construction on three homes in its new division. After
construction had begun, the buyers of the homes closed escrow on the homes. The
lender for the buyers had the buyers sign affidavits stating that construction had not
begun. The buyers gave the lender mortgages on their properties. If Harbor is not paid
and the buyers default, who has first rights on the proceeds from the sale of the
property?
a. The lender
b. Harbor Builders
c. Neither, they take a pro rata share
d. The buyers
The property which enjoys the benefit of an easement is
a. The dominant estate
b. The servient estate
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.
When the foreclosure takes place, who has priority in the distribution of the funds?
a. Wells Fargo
b. Paddock because it was a creditor for improvement to the property and takes priority
over the original mortgage lender
c. Fifth First Bank
d. Because they are all mortgages, they are on equal footing and there will be a pro rata
distribution
A failure by a broker to inspect a listed property
a. Will not result in liability for the broker so long as the broker did not have actual
knowledge of any effects
b. Will result in liability for the broker if the inspection would have flagged defects
c. Will not result in liability to the brokers
d. None of the above
Assume the following sequence of events:
Day 1 ‘“ O conveys to A
Day 2 ‘“ O conveys to B (bfp)
Day 3 ‘“ B records
Day 3 ‘“ O conveys to C (bfp)
In a notice state, who will have title to the property?
a. A
b. B
c. C
“To A for life” is an example of
a. A life estate
b. A life estate pur autre vie
c. A tenancy for years
d. A tenancy at will
e. None of the above
What are the requirements for a self-proving will?
a. A will executed in front of the required number of witnesses who sign a document
indicating that they witnessed the will
b. A will that the testator acknowledges to another is his will
c. A will that is witnessed by the required number of witnesses and their signatures are
notarized
d. A will that is filed in advance with the probate court
With regard to Amy’s lease in #17
a. It need not be in writing to be valid
b. The lease must be in writing
c. The statute of frauds does not apply to leases
d. It is a periodic lease
In which of the following do all investors have limited liability?
a. LLP
b. General partnership
c. Sole proprietorship
d. In all of the above do investors have limited liability
Union Electric wishes to construct a new coal-fired plant in the northeastern corner of
Arizona. Union plans to use the maximum achievement technology for the scrubbers on
the plant to reduce emissions. Will Union be able to obtain a permit from the EPA to
build and operate the new power plant? Discuss the issues that Union faces.
Which of the following would not be found in the United States Code?
a. Laws regulating securities
b. Laws regulating the licensing of real estate brokers
c. Laws regulating the sale of undeveloped property
d. Laws regulating zoning
Assume the following sequence of events:
January 2, 2013 ‘“ construction mortgage recorded
January 3, 2013 ‘“ A begins work
January 10, 2013 ‘“ B begins work
February 1, 2013 ‘“ B files a lien
February 3, 2013 ‘“ A files a lien
a. Discuss the priority of the parties under all the theories of priority.
b. Reverse the actions on January 2 and 3. Suppose A began work on January 2 and the
mortgage was recorded on the 3rd. What result under all theories?
How many square miles in a township?
a. 36
b. 24
c. 18
d. None of the above
If a deed restriction violates the equal protection clause
a. It will still be honored until the restriction expires
b. The deed is valid, but the restriction does not apply
c. The property is taken by eminent domain
d. None of the above
In a landlord/tenant relationship, attached items are more likely to be treated as personal
property.
The dominant estate is the property with the easement on it.
Suppose Tenant One slips and falls on a sidewalk that is being repaired (located along
side the complex pool), but has no warnings around it. What result?
A secured party has priority over an unsecured party under Article 9.
Adams, a successful attorney with many land holdings, executes a deed transferring
title to a piece of property to his daughter. The deed is not recorded but is placed in
Adams’ safe deposit box at the bank. Who has title?