Archives: Quiz

Which of the following is true of a decision tree? a) It’s the basis for making logical decisions in the absence of uncertainty. b) It represents decisions, chance events, and possible outcomes in choices under risk and uncertainty. c) It’s […]

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. Answer: T Developers are responsible for pre-conversion expenses. Answer: T Legislators enact the rules and regulations […]

The challenges mortgagors use in foreclosure proceedings are based on the requirement that the party foreclosing actually holds the mortgage note and lien. There is increasing litigation between states over water allocation. Answer: T Multi-unit housing associations do not have […]

There are no criminal penalties for violations of RESPA deposit requirements. The Torrens system requires registration of title. Answer: T A street address is a sufficient legal description. Answer: F Reverse mortgages allow retired homeowners to use the equity in […]

Judicial foreclosure does not require notice to the mortgagor. An EIS must be filed for both private and governmental projects. Answer: F There was an implied warranty of habitability at common law. Answer: F Title insurance covers mechanic’s liens. Answer: […]

A periodic tenancy must be in writing to be valid. The good faith estimate under RESPA must be given within one day of loan application. Answer: F In condominiums, the owner really owns air space. Answer: T The Rule of […]

Change orders require that the contractor be paid additional compensation. ‘The land that includes the Wind Song cave’ is a sufficient legal description. Answer: F A mortgagee (with a properly recorded mortgage) who is obligated to advance future funds will […]

A real estate agent cannot provide a basis for a buyer’s claim of misrepresentation. A purchase contract is the same thing as an installment contract. Answer: F Title insurance does not cover issues related to misplaced boundary lines. Answer: F […]

There is no specified form to be followed for the settlement statement. Disclosure statutes may prohibit brokers/agents from discussing certain issues related to a property. Answer: T Regulation A applies to intrastate offerings of securities only. Answer: F Homeowners’ associations […]

POC is an acronym for ‘paid on credit.’ The interest on all home equity loans is non’‘deductible. Answer: F As between buyer and seller, the escrow instructions are controlling in the event of a conflict of terms. Answer: F In […]

Promissory estoppel is used to help subs force generals to use them in the project if their figures were used in the bid. The HUD-1 Settlement Statement has replaced the Uniform Settlement Statement for RESPA compliance. Answer: T A homeowner […]

There is little difference in the foreclosure rates on LMI mortgage loans vs. conventional mortgage loans. Mortgage Assistance Relief Programs are not now regulated as a result of new regulations. Answer: F The growth in LMI loans was fueled by […]

The Rule in Dumpor’s Case provides that if the landlord agrees to one assignment, he’s agreed to all assignments. The remaining joint tenants can recover damages from a joint tenant who transfers his interest and severs the tenancy. Answer: F […]

Small errors in lending disclosure statements are acceptable and will not result in the loss of mortgage rights. In a pure race jurisdiction, only bona fide purchasers can take good title when dual claims are made. Answer: F An easement […]

Fair market value is the measure of adequate compensation in eminent domain. A subsurface interest in land should include an easement or license for surface use for access. Answer: T F Under the UPC, a personal representative is appointed only […]

The common law doctrine of advancement refers to the same thing as lapse. RESPA is applicable to home improvement loans. Answer: T The doctrine of partial performance under the Statute of Frauds is not available for oral real estate contracts. […]

A description that references a “part of” a section and gives the full government survey location is sufficient. A broker has a duty to inspect the listed property. Answer: T The general priority rule between recorded land interests is first […]

A tenant has the authority to contract so as to give lien rights on the landlord’s property. Fair market value is defined as what a willing buyer would pay a willing seller. Answer: T Regulation of land use is never […]

Parallels are placed every 24 miles. The period of possession for claiming title by adverse possession is 5-25 years in most states. Answer: T The NE-1/4 of a section has 60 acres. Answer: F Tenants in common can make valid […]

An area zoned for commercial use only is an example of use restriction zoning. Payment of taxes by the title holder precludes adverse possession. Answer: F The timing of the presentment of a prenuptial agreement is part of determining its […]

Under the UPA, partnership profits are split equally. A mortgage is a contractual or equitable lien. Answer: T A tax sale requires formal foreclosure to be valid. Answer: F Cities and towns can provide benefits for stalled developments if the […]

Brokers can be classified as lenders for purposes of Regulation Z disclosure requirements. A metes and bounds description requires an immovable starting point. Answer: T A township has 640 sections. Answer: F A deed transferring ‘the farm’ from the parent […]

Prenuptial agreements can be set aside if undue pressure was exerted. Conditions precedent may serve to excuse the buyer’s or seller’s performance under the purchase contract. Answer: T An option requires a seller to hold an offer open for the […]

Joint tenants can make valid testamentary transfers of their interests. MERS has the same information that is available in the public recording offices for land records. Answer: F Time’‘sharing interests can be fee simple interests. Answer: T ‘I accept provided […]

The EPA prescribes standards for release of effluent as part of the NPDES permit system. A seller can revoke an option at any time so long as there is proper notification. Answer: F An executor need only sign his name […]

Coal-fired plants are not required to obtain EPA approval for minor modifications to their plants. Intensity zoning controls items such as building set’‘backs. Answer: T Landowners are liable for any injuries resulting from criminal acts committed on their property. Answer: […]

In the “ready, willing and able” standard, “able” means financially able. Redlining occurs when a lender considers the area of the property to be purchased as a factor in qualifying the buyer for the loan. Answer: T Once a listing […]

In all states, attorneys acting for clients in selling real estate must have licenses. Due process requires that a taxpayer not be required to pay tax until after they’ve had an opportunity to object. Answer: T If you move next […]

A deed need not be recorded to be valid. Recording involves the copying of documents and retention of those copies. Answer: T Social issue zoning has been declared unconstitutional. Answer: F A patron in a store is an invitee. Answer: […]

State laws governing homeowner associations have increased in the past few years. Brokers can be held liable for negligent misrepresentation. Answer: T A buyer who does not qualify for financing is not a ready, willing, and able buyer. Answer: T […]

In both tenancies in common and joint tenancies, all tenants have the right to exclusive use and possession. A subdivision trust is a method of financing in which both the buyer and seller are beneficiaries. Answer: T Just compensation is […]

In the cost approach to valuation, the assessor examines replacement cost. Common law gives priority to lien holders in the order in which they file their liens. Answer: F The lender is responsible for delivery of documents to escrow. Answer: […]

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. Answer: T The escrow agent bears the responsibility […]

State constitutions cannot include provisions other than those that govern the structure of state government. In determining what a description means, the terms are construed in the grantee’s favor. Answer: T The Rule of Capture protects landowners drilling from their […]

The purchase contract must be recorded in order to be valid. Impact fees are unconstitutional. Answer: F An ‘as is’ clause does not provide blanket immunity for a broker. Answer: T Condominium owners have no ownership rights in the common […]

A creditor of a joint tenant has a lien on the entire property. A co-op owner cannot be removed from his or her unit through eviction processes. Answer: T Homeowners’ associations cannot promulgate rules that are not part of the […]

Only vested remainders can be transferred. What is the effect of the failure to give the preliminary notice? Answer: In most states ‘“ right to lien is lost. The degree of annexation is always controlling in determining whether property is […]

Landlords control the hours of operation for common areas. A utility easement ends once the servient estate is transferred. Answer: F Describe the protections of the Soldiers and Sailors Relief Act. Answer: The act, recently amended to afford greater protections […]

April 1965, Berkeley Heights Shopping Center leased 11,514 square feet of space to A & P Supermarkets. Under the terms of the lease, Berkeley agreed not to lease any other shopping-center space to another grocery store. On April 16, 1977, […]

Josiah and Kelly Jones leased a home from Grace and Bruce Underwood. The Jones missed paying their second month’s rent, and no one has been seen in the home. Grace has looked through the front window and seen the Jones’ […]

On November 5, 2001, Commercial Builders, Inc., contracted with Concord to construct a steel building that would house a motorcross track. This contract called for Concord to begin construction ASAP, and Concord began construction. At the time the construction began, […]

Discuss the differences between the possibility of reverter and the right of entry/power of termination. Nancy Henson wishes to list some acreage she has with a broker. She still wishes to be able to sell the property herself without paying […]

R is putting together a syndicate for the purpose of constructing four duplexes on a piece of land he now owns. R would like to raise $200,000 for construction of the duplexes. He would allow the investors to share in […]

A tenancy for years is properly terminated with one rental period’s notice. Undue influence does not require proof of physical force. Answer: T Landlords in commercial properties are liable for injuries in the common areas. Answer: T Laughing heir statutes […]

Landlords of commercial properties are liable for harm caused by criminal activity when there is a pattern of criminal activity. Lester, a California resident, owns a parcel of property in Arkansas. Lester has not visited the property in 22 years […]

Since 1958, Ray and Barbara Mensen have leased on a month-to-month basis a house owned by Helen and Clarence Haines (Clarence died in 1984). In 1963, discussions began between the two couples about the possibility of a purchase of the […]

A life estate can be transferred by the holder. Levitz entered into an agreement to sell property to Safeway. Safeway placed a condition in the agreement that required Levitz to obtain title to and sell to Safeway the lot adjoining […]

The American Recovery and Reinvestment Act does not permit government funds to go to private assistance for home buyers having trouble paying their mortgages. The basis of a property = purchase price + improvements less depreciation. Answer: T An NPDES […]

A lien for federal estate taxes is a voluntary lien. A creditor foreclosing on a joint tenant’s pledged interest becomes a joint tenant. Answer: F Homeowners’ associations cannot restrict color schemes. Answer: F Regulation of property can never constitute a […]

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. Answer: T The Patriot Act applies to escrow agents and closing. Answer: T In […]