A tenant at sufferance can be required to vacate at any time.
Phase I due diligence requires a search of public records related to the land.
The Patriot Act applies to escrow agents and closing.
In a subject to sale, the buyer is not personally liable to the seller’s lender.
Testamentary capacity is presumed nonexistent if a guardian was appointed for the
testator during the testator’s lifetime.
The 59-story Met Life Building in New York is built only in the air lot above the
surface.
A general contractor is usually not entitled to lien property.
Assessment figures are always true cash value.
In a notice jurisdiction, the first party to record takes title.
In some states, the leasing of properties with code violations is void.
The Kelo case limited local development through condemnation of private property.
RESPA is applicable to all loans involving government insurance.
Brokers are required under their duty of care to reveal any dangers in offers.
Anchor tenants
a. Usually pay less rent than other tenants
b. Are responsible for the maintenance of common areas
c. Draw the majority of the customers to the center
d. a and c
e. None of the above
Which of the following are placed every 24 miles in the government survey?
a. Principal meridians
b. Range lines
c. Baselines
d. None of the above
The loss reporting mechanism for Subchapter S corporations is most like:
a. A partnership
b. A corporation
c. A REIT
d. None of the above
The Rule in Dumpor’s Case
a. Applies to assignments of leases
b. Has been adopted in most states
c. Deals with issues of tenants’ growing crops
d. None of the above
What are foreclosure ghettos?
a. The portfolios of financial institutions that have been beneficiaries of TARP
b. Areas or neighborhoods with high rates of foreclosure
c. Fannie Mae’s portfolios
d. None of the above
Lance has just purchased a home for $220,000 in a quiet subdivision of Dallas. Lance
soon discovers that his neighbors have two sons, ages 16 and 18, who have car stereos
and a significant number of friends. Each evening as the boys return home, their stereos
are quite loud and the bass vibrations cause the windows in Lance’s home to shake.
Their returns are generally between midnight and 2:00 a.m., and Lance is losing sleep.
He is quite irritable and not performing at his peak at work. Lance’s neighbors are
similarly disturbed by the boys’ activities. What, if anything, can they do?
CERCLA Liability applies to
a. Corporate board members
b. Corporate successors
c. Corporate officers
d. All of the above
Constructive delivery
a. Is delivery to the grantee
b. Is not a valid form of delivery
c. Occurs when a third party is involved in delivery
d. None of the above
Which of the following errors in disclosure in a residential mortgage loan gives the
consumer borrower a three-year right of rescission?
a. A mistake in the APR
b. A mistake on the interest rate
c. A mistake on the amortization provisions of the loan
d. All of the above
Which of the following would make a metes and bounds description insufficient?
a. A movable starting point
b. A reference to a stream
c. A reference to a street intersection
d. All of the above would make the description insufficient
A, B and C own property as joint tenants with right of survivorship. C makes an inter
vivos conveyance to D. C’s actions
a. Are ineffective ‘“ D must return the property
b. Are effective provided the other joint tenants consented
c. Are effective and D is a tenant in common
d. None of the above
Richard Gregorian owns the house on the subdivided property below.
The boundary lines for the four tracts are Gregorian’s sidewalk and driveway lines.
Consider and discuss the following issues:
a. After selling the property, Gregorian realized that his sewer lines run through Tracts
A and C.
b. After buying the property, the owners of Tracts C and D realized that they had no
access to the road.
Information required to be disclosed to the borrower include
a. The APR
b. When payments are due
c. The mailing address of the lender
d. Both a and b
e. All of the above
In the Kelo case, the tension in the facts involved
a. The right of local government to take private property used for one purpose and give
it to another private party for a different use as part of an economic development plant
b. The right of local government to clean up blighted areas through the use of eminent
domain
c. Whether eminent domain can be used for economic development
d. Whether private landowners can use the Civil Rights Act for protection of their land
Which of the following is a required ADA accommodation?
a. Allowing guide dogs
b. Installation of elevators
c. Restrooms wide enough for a wheelchair
d. All of the above
Which is the most important factor in determining whether an item is a fixture or
personal property?
a. Degree of attachment
b. Who wants to know
c. Degree of land ownership
d. Agreement of the parties
When is a landlord liable for injuries to tenants that result from criminal activity by
third parties?
a. The landlord is always liable for such injuries
b. The landlord is never liable for injuries that result from criminal activity by third
parties
c. The landlord is liable for criminal injuries to tenants by third parties when there has
been criminal activity before and the landlord has not taken steps to prevent it
d. The landlord is liable for criminal injuries to tenants by third parties when the injuries
are only related to property
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.
Refer back to #40. Suppose that Melanie failed to make her payments to Zack, Fifth
First has to foreclose on the home because Zack says he is not responsible for the
payments any longer. Which of the following statements is correct?
a. Zack is correct, the sale to Melanie ended his obligations to Fifth First Bank
b. Zack is incorrect, he remains liable to Fifth First Bank
c. Zack is not liable and Fifth First cannot foreclose because it had no relationship with
Melanie
d. Zack is correct, Melanie assumed the loan and the result was Fifth First released
Zack
Which of the following are necessary to create a presumption of undue influence?
a. Confidential relationship
b. Power of attorney
c. Non-blood relative beneficiary under a will
d. All of the above
ARMS
a. Must have a cap on interest increases
b. Can be indexed by the lender’s internal indexing system
c. Are the same as FHA 245 loans
d. None of the above
American Homes, Inc., has purchased property for the development of a planned
community near Tucson, Arizona. The property, near Mt. Lemon, is home to the
red-back grey squirrel, an endangered species. The Sierra Club wishes to object to the
construction and project.
a. The Sierra Club can bring suit under ESA
b. Only the EPA has standing to bring suit under the ESA
c. The ESA does not apply to private corporations such as American
d. The suit can be brought under ESA only after the project begins and the squirrels are
affected
Jane has financed her one-acre lot through Bank Thrift Trust and secured it with a
mortgage. Jane already owned a mobile home, which she placed on the lot and then
resided there. After 3 years of payments, Jane defaulted on the mortgage. Because
property values had deteriorated, Jane simply walked away and left the lot and the
mobile home. Bank Thrift Trust has taken over the land and the mobile home. Bank
Thrift Trust
a. Owns the mobile home
b. Is a trespasser on the property
c. Is a tenant at will in the mobile home
d. Can do nothing with the mobile home
With reference to #21, the HOA rules are
a. An example of private law
b. An example of agency regulations
c. Unconstitutional
d. None of the above
George, Phil, and Graham own a tract of land that they want to use to create a planned
community. They would all like an equal say in the project, but they also want limited
liability in case the development does not do well. Which of the following business
structures will give them what they want?
a. General partnership
b. Limited partnership
c. Limited liability company
d. Corporation
Liquidated damages in real estate contracts
a. Can be the earnest money deposit
b. Are in addition to actual damages
c. Are illegal
d. None of the above
A ticket to a sporting event is a license.
A CPI clause allows rental increases based on an external scale.
Explain why there is no widely adopted uniform law on mechanic’s liens.
O owns Blackacre, a lovely home in Phoenix, which is worth $100,000. Blackacre is
mortgaged to M for $80,000. The mortgage provides that to secure the $80,000 debt, O
mortgages “all the following described real estate (description omitted) including all
fixtures, improvement and appurtenances thereto, including those now existing or
hereafter added to the property.” The mortgage is duly recorded. Thereafter O purchases
some lovely decorative mirror squares from Mike’s Mirrors on credit ($800). O then
hires Harry to attach the mirrors (with a rather strong glue) to the east wall of his living
room. Harry charges O $150 for his labors. Mike properly filed a financing statement
on the mirrors ‘“ before Harry began installation. Harry files a mechanic’s lien for the
labor he performed when he was finished. (Filed after Mike; Mike filed after M). O
pays nothing to Mike and Harry. Mike wants his mirrors and Harry wants to be paid. M
objects saying his mortgage is superior to their rights. What results?
R.C. Willey is the sole heir of J.D. Willey. In his will, Willey made the following grant
to Toledo College, ‘To Toledo College, my alma mater, so long as the property is used
for a library for the students.’ Toledo College did build a library on the property in 1988.
However, because of increased enrollment, Toledo College needs a larger library and
has acquired land on the south side of the campus for purposes of constructing a new
and larger library. Toledo has converted the building on the Willey property into a
student tutoring center. R.C. Willey wants to know his rights. Which of the following
best describes R.C.’s rights in the property?
a. Because the interest is a fee simple determinable and the use restrictions have been
violated, title reverts back to J.D. Willey’s heirs or to R.C.
b. Because the interest is a fee simple subject to a condition subsequent, R.C. has the
right to bring action to have title to the property quieted in his name
c. Because Toledo College’s interest in the land has existed for so long, R.C. has lost
any rights he might have in it
d. The use of the property for a tutoring center is close enough and not conduct that
results in the College’s loss of title
Ralph purchased a home in 2004 for $600,000. Ralph added a pool and landscaping for
$36,000. Ralph lost his job and had to sell the home In a short sale for $420,000. Ralph
had depreciated $32,000. The real estate commission was $28,000. What is the capital
gains computation for Ralph?
a. A gain of $392,000
b. A gain of $212,000
c. A loss of $212,000
d. A loss of $280,000
Bill purchased a house on September 3, 2007 for $445,000. On November 5, 2007, he
deeded the property to “William H. Smith [himself] and Jane D. Smith, husband and
wife, not as community property and not as tenants in common, but as joint tenants with
right of survivorship.” What type of co’‘owners are Bill and Jane? (They were married
in October of 2007).