Ch 5 Encumbrences 7 Liens

Question 1

1. Easements and encroachments are types of
   a. lien.
   b. deed restriction.
   c. encumbrance.
   d. appurtenance.

Answer 1

c. encumbrance.

Question 2

3. There are two adjoining properties. An easement allows property A to use the access road that belongs to property B. In this situation, property A is said to be which of the following in relation to property B?
   a. Subservient estate
   b. Servient estate
   c. Senior tenant
   d. Dominant tenement

Answer 2

d. Dominant tenement

Question 3

9. The lien priority of junior liens can be changed by a lienor’s agreement to
   a. forgive portions of the debt.
   b. assign the note.
   c. foreclose on the note.
   d. subordinate.

Answer 3

d. subordinate.

Question 4

11. What is meant by a “lien-theory” state?
    a. A state in which liens are given priority over other encumbrances
    b. A state in which a mortgagor retains title to the property when a mortgage lien is created
    c. A state in which the holder of a mortgage lien receives title to the mortgaged property until the debt is satisfied
    d. A state in which liens exist in theory but not in practice

Answer 4

b. A state in which a mortgagor retains title to the property when a mortgage lien is created

Question 5

12. A homeowner has hired a contractor to build a room addition. The work has been completed and the contractor has been paid for all work and materials but fails to pay the lumber yard for a load of lumber. What potential problem may the home owner experience?
    a. The contractor may place a mechanic’s lien for the amount of the lumber against the homeowner’s real property.
    b. The lumber yard may place a vendor’s lien against the contractor and the homeowner for the amount of the lumber.
    c. The lumber yard may place a mechanic’s lien for the amount of the lumber against the homeowner’s real property.
    d. The homeowner has no liability because the contractor was paid for the lumber.

Answer 5

c. The lumber yard may place a mechanic’s lien for the amount of the lumber against the homeowner’s real property.

Question 6

14. An important difference between a judicial foreclosure and a non-judicial foreclosure is
    a. there is no right to redeem the property in a nonjudicial foreclosure.
    b. a judicial foreclosure forces a sale of the property.
    c. a non-judicial foreclosure ensures that all liens are paid in order of priority.
    d. the lienor receives title directly in a non-judicial foreclosure.

Answer 6

a. there is no right to redeem the property in a nonjudicial foreclosure.

Question 7

19. A property owner allows Betty Luanne to cross his property as a shortcut to her kindergarten school bus. One day the property owner dies. What right was Betty given, and what happens to it in the future?
    a. A personal easement in gross, which continues after the owner’s death
    b. An easement by prescription, which continues after the owner’s death
    c. A license, which continues after the owner’s death
    d. A license, which terminates at the owner’s death

Answer 7

d. A license, which terminates at the owner’s death