Property - Missed Questions

Question 1

At common law, a conveyance of property from O “to O and A as joint tenants with right of survivorship” creates a __________.

A. Tenancy for years
B. Tenancy the entirety
C. Tenancy in common
D. Joint tenancy

Answer 1

C. Tenancy in common

“O” acquired his instrument first by another instrument.

Question 2

Two partners bought a commercial building from an owner. They paid cash for the building and took title as joint tenants with right of survivorship. Several years later, the first partner executed a mortgage on the building to secure a personal loan to a bank. The second partner had no knowledge of the mortgage to the bank. The state in which the commercial building is located recognizes the lien theory of mortgages. The first partner died before paying off his loan. He left all of his property by will to his daughter, his only heir.

Who has title to the commercial building?

A. The second partner has title free and clear of the mortgage
B. An undivided one-half is held by the second partner free and clear of the mortgage, and the other one-half is held by the daughter, subject to the mortgage
C. An undivided one-half is held by the second partner and the other one-half by the daughter, with both halves subject to to the mortgage
D. The second partner has title to the entire property, with an undivided one-half being subject to the mortgage

Answer 2

A. The second partner has title free and clear of the mortgage

Question 3

Which of the following transfers creates a sublease from T to T2?

A. One year into a five-year tenancy for years, T transfers his interest “to T2 for four years; however, if T2 breaches the original lease terms, T may reenter and retake the premises.
B. Six months into a seven-month tenancy for years, T transfers his interest “o A for the balance of the leasehold term.”
C. Two years into a four-year tenancy for years, T “assigns my entire interest to T2 for one year.”

Answer 3

C. Two years into a four-year tenancy for years, T “assigns my entire interest to T2 for one year.”

Question 4

A landlord entered into a 10-year lease of a building with an auctioneer, who planned to use the building itself for a storage area and the covered porch at the front of the building for auctions. A term in the auctioneer’s lease stated, “Lessor agrees to maintain all structures on the property in good repair.” Four years into the lease, the landlord sold the property to a buyer. The buyer did not agree to perform any obligations under the lease. As instructed, the auctioneer began paying rent to the buyer. In the fifth year of the lease, the porch roof began to leak. Citing the lease terms, the auctioneer asked the buyer to repair the roof. He continually refused to do so. The auctioneer finally repaired the roof herself at a cost of $2,000. The auctioneer then brought an appropriate lawsuit to recover the money.

Absent any other facts, what is the auctioneer likely to recover?

A. $2,000 from the LL only, because the sale of the property did not sever his obligation to the auctioneer
B. $2,000 from the buyer only, because a covenant to repair runs with the land
C. $1,200 from the buyer and $800 from the LL, because that represents their pro rata shares
D. $2000 from either the buyer or the LL, because they are both in privity with the auctioneer

Answer 4

D. $2000 from either the buyer or the LL, because they are both in privity with the auctioneer

The only way that the LL could be released is by a novation; not present here.

Question 5

A landowner and her neighbor owned adjoining parcels of land. The landowner’s property was situated to the west of the neighbor’s property. A highway ran along the east of the neighbor’s property. Twelve years ago, the landowner asked the neighbor if it would be all right for the landowner to use an eight-foot strip along the northern part of the neighbor’s land to access the highway. The only other way for the landowner to get to the highway was to use a one-lane unpaved road that meandered through the woods for two miles. The neighbor agreed, and the landowner used the strip of land regularly to access the highway. The statutory period for adverse possession in this jurisdiction is 10 years.

What is the landowner’s interest in the neighbor’s eight-foot strip of land?

A. An easement appurtenant
B. An easement by necessity
C. An easement by prescription
D. Not an easement

Answer 5

D. Not an easement

It is a license, not an easement. Licenses are revocable privileges.

Question 6

A retiree purchased a rustic cabin on a small plot of land near the center of a landowner’s large parcel of land. The deed to the land, which the landowner delivered to the retiree for fair consideration, did not specifically grant an easement over the landowner’s property to reach the public highway bordering her land. There were two means of access to the cabin from the public roads: a driveway from the county road on the south, and a private road from the highway on the east. The landowner told the retiree that he could use the private road from the highway. Twice during his first two years at the cabin, the retiree took the driveway from the county road instead; at all other times he used the private road.

At the end of his second year at the cabin, the retiree began reading tarot cards to supplement his retirement income. He had a steady stream of clients coming to his home at all hours of the day and night. Most of the clients came in on the driveway from the county road, which ran close to the landowner’s home. The landowner objected, and told the retiree that neither he nor his clients had any right to use that driveway and that they must use the private road from the highway. The retiree refused, and he and his clients continued to use the driveway from the county road for three years. Finally, the landowner began blocking off the driveway from the county road. The retiree brought suit to enjoin this practice. The prescriptive period in this jurisdiction is five years.

Who will most likely prevail?

A. The landowner, because the tarot business changed the nature of the use of the easement by necessity.
B. The landowner, because she may select the location of the easement.
C. The retiree, because he has a valid easement by necessity in the driveway from the county road.
D. The retiree, because he has acquired an easement by prescription in the driveway from the county road.

Answer 6

B. The landowner, because she may select the location of the easement.

Question 7

A developer owned a 240-acre parcel of land zoned for commercial and residential use. He prepared and recorded, after obtaining approval from all appropriate agencies, a subdivision plan that included a commercial center and a number of lots for single- and multi-family residences. The list of covenants, conditions, and restrictions recorded with the plan included provisions that required every building constructed in the subdivision to be of “simulated adobe style” architecture approved in advance by an association. A year later, the developer sold many of the lots in the commercial center, including several to a real estate firm. Each deed prepared by the developer contained a reference to the design restriction in the recorded plan. The developer also sold almost all of the residential lots, the deeds of which contained the same reference to the restriction. The following year, the real estate firm sold one of its lots to a burger franchise. The deed contained no reference to the design restriction. The franchise’s prefabricated restaurant, complete with a giant burger logo mounted on the roof, was constructed over the weekend.

A merchant, an original purchaser of one of the commercial lots, owned the lot next to the burger franchise. She did not learn of construction of the restaurant until she came in to work on Monday, and saw the giant burger logo. The merchant brings an action seeking a mandatory injunction compelling the burger franchise to demolish the restaurant. At trial, the merchant proves that the burger franchise did not seek or obtain approval of the association for its building.

Should the court issue the injunction?

A. No, because destruction of the restaurant would be a tremendous waste of resources.
B. No, because the burger franchise’s deed contained no restriction on the type of building that could be constructed on the lot.
C. Yes, because the restrictive covenant runs with the land.
D. Yes, unless the burger franchise can establish to the court’s satisfaction that its restaurant design has at least as much aesthetic merit as any “simulated adobe style” design.

Answer 7

C. Yes, because the restrictive covenant runs with the land.

Question 8

A developer prepared and recorded a subdivision plan, calling for 100 home sites on half-acre lots. There were five different approved plans from which a purchaser could choose the design of the home to be built on his lot. Each deed, which referred to the recorded plan, stated that “no residence shall be erected on any lot that has not been approved by the homeowners’ association.”

A lawyer purchased a lot and built a home based on one of the approved designs. However, many of the lots were purchased by investors who wanted to hold the lots for investment purposes. Two years after the lots went on the market, one such investor sold her lot to an architect by a deed that did not contain any reference to the recorded plan nor the obligation regarding approval by the homeowners’ association. In fact, because very few residences had been built in the subdivision since the lots were first available for purchase, no homeowners’ association meetings had been held in two years.

The architect began building a very modernistic house on her one-half acre. When the lawyer noticed the house being built, he brought an action to enjoin the construction.

For which party will the court rule?

A. The architect, because her deed contained no restrictive covenants.
B. The architect, because any restrictive covenant in her deed can only be enforced by the opposite party to the covenant or that person’s successor in title.
C. The lawyer, because the recorded subdivision plan, taken with the fact that all lots were similary restricted and the architect had notice of this, gave him the right to enforce the covenant on her property.
D. The lawyer, because his deed contained the restrictive covenant.

Answer 8

C. The lawyer, because the recorded subdivision plan, taken with the fact that all lots were similary restricted and the architect had notice of this, gave him the right to enforce the covenant on her property.

Question 9

A developer owned a 30-acre tract of farmland. As required by law, the developer filed a plat with the county planning board, but did not record it. The plat divided the parcel into 87 one-third-acre residential lots. A one-acre strip on the eastern edge of the parcel that abutted a busy highway was set aside for commercial development. The plat restricted each lot to a single residence and banned all “nonconforming detracting structures or appurtenances,” including “free-standing flagpoles more than six feet in height, television antennas and receiving equipment of excessive size and obtrusiveness, and windmills.” The restrictive clause was put into the deeds of all the residential lots in the subdivision, except for the deeds to lots 23, 24, and 25. This oversight was due to an error by the developer’s secretary. All the other lots had deeds stating that the restriction applied “to the grantee and his or her heirs and assigns.”

A homeowner purchased lot 24 and duly recorded her deed in the office of the county recorder of deeds. The developer’s salesperson had orally informed the homeowner of the general restrictions applicable to lots in the subdivision. A year later, a sports bar purchased the one-acre commercial strip and installed a large satellite dish. Two years later, the homeowner sold her property to a buyer. The homeowner never mentioned any of the restrictions to the buyer. The buyer put a satellite dish on top of his house. His dish was not as large as the bar’s dish, but it was obviously bigger than any of his neighbors’ modest antennas. The owners of 15 lots in the subdivision sue the buyer, demanding that he remove the dish.

If the court finds for the buyer, what is the likely reason?

A. The buyer is not charged with record notice based on other deeds given by a common grantor
B. The buyer’s predecessor in interest, the homeowner, was not bound by the oral restriction told to her by the developer’s salesperson
C. The property owners suing the buyer all purchased their lots prior to the homeowner’s purchase of lot 24
D. The existence of a satellite dish on the eastern end of the original parcel indicates that neighborhood conditions have changed to the point where it would be inequitable to enforce the restrictions.

Answer 9

A. The buyer is not charged with record notice based on other deeds given by a common grantor

Question 10

A developer created an exclusive residential subdivision. In his deed to each lot, the following language appeared:

Grantee agrees for himself and assigns to use this property solely as a single-family residence, to pay monthly fees as levied by the homeowners’ association for upkeep and security guard services, and that the backyard of this property shall remain unfenced so that bicycle paths and walkways may run through each backyard, as per the subdivision master plan [adequately described], for use by all residents of the subdivision.
The developer sold lots to an actuary, a baker, and a coroner. All deeds were recorded. The subdivision was developed without backyard fences, with bicycle paths and walkways in place in accordance with the general plan. The actuary in turn sold to an accountant by a deed that omitted any mention of the covenants above, and the accountant had no actual knowledge thereof. Shortly thereafter, the accountant started operating a tax preparation business out of his home. The baker in turn sold to a barber, who knew of, but refused to pay, the monthly fees levied by the homeowners’ association. The coroner leased their property for 10 years to a chiropractor, who erected a fence around the backyard, unaware of the covenant against such fencing.

According to common law principles, which of the following statements is correct?

A. If the developer, still owning unsold lots, sues the accountant to have him cease operating the tax preparation business, the accountant would win because there is no privity between the developer and the accountant.

B.If the homeowners’ association sues the barber to collect the monthly fees for upkeep and security guard services, the homeowners’ association would win because the covenant regarding fees is enforceable in equity against the barber.

C. If the barber sues the chiropractor to obtain removal of her backyard fence, the barber would win because the covenant regarding fencing is enforceable in equity against the chiropractor.

D. If the chiropractor sues the accountant to have him cease operating the tax preparation business, the chiropractor would win because the covenant regarding single-family use is enforceable at law against the accountant.

Answer 10

C. If the barber sues the chiropractor to obtain removal of her backyard fence, the barber would win because the covenant regarding fencing is enforceable in equity against the chiropractor.

Question 11

O conveys a life estate to A, with a remainder to B.

If during A’s lifetime, X enters into actual, exclusive possession that is open and notorious and hostile for the statutory period, will X obtain title to the land?

A. Yes, if X had color of title.
B. No, because land subject to a future interest cannot be acquired by adverse possession.
C. No, but X will acquire A’s life estate.
D. Yes, because X satisfied the elements of adverse possesion.

Answer 11

C. No, but X will acquire A’s life estate.

Question 12

A farmer conveyed a 60-acre parcel of land to a rancher. A private gravel road ran through the center of the parcel. The southern half consisted of arable land, which the farmer, and later the rancher, used for farming. The northern half was undeveloped woodland. The rancher never used the northern half for timbering or for anything else. On very rare occasions, the rancher would take a walk in the woods, but outside of those occasions she never set foot on the northern half.

Fifteen years after the farmer conveyed the parcel to the rancher, a landowner appeared, claiming ownership of the northern half of the parcel. Unbeknownst to either the farmer or the rancher, the landowner’s name had been forged on the deed purporting to convey the parcel to the farmer, and the landowner was, in fact, the true owner of the property at that time. The state in which the parcel is located has a 10-year statutory adverse possession period. The landowner admits that the rancher now has title to the southern half of the parcel by adverse possession.

In an action to quiet title, who will prevail as to the northern half of the parcel?

A. The landowner, because the rancher did not actually occupy the northern half.
B. The landowner, because one may not obtain color of title through a forged deed.
C. The rancher, because her farming of the southern half was constructive occupation of the entire parcel, including the northern half.
D. The rancher, because the farmer did not know his deed to the parcel was forged, and he acted in good faith when he conveyed to the rancher.

Answer 12

A. The landowner, because the rancher did not actually occupy the northern half.

Question 13

A man owned a tract of land in fee simple. Fifteen years ago, he built a barn on five acres that he believed were part of his property. One year later, the man discovered that the five acres on which he had built his barn were not part of his property. The five acres actually belonged to the woman who owned the adjoining property. The year following the discovery that the five acres belonged to the woman next door, the woman died, leaving all of her property to her one-year-old daughter. The man has brought a quiet title action against the now 14-year-old daughter. The statutory period for adverse possession in this jurisdiction is 10 years. The man has not paid any additional property taxes to account for the five acres for any of the past fifteen years.

Who will prevail?

A. The daughter, because the man did not pay the property taxes on the five acres.
B. The daughter, because her status as a minor tolls the statute until she reaches her majority.
C. The man, because he honestly believed that the five acres were part of his land.
D. The man, because he was in continuous possession of the five acres for the statutory period.

Answer 13

D. The man, because he was in continuous possession of the five acres for the statutory period.

Question 14

Which of the following does not charge a purchaser of realty with inquiry notice?

A. Absence of his grantor’s deed from chain of title.
B. His deed’s reference to an unrecorded instrument.
C. His grantor’s use of a quitclaim deed.
D. The presence of a third party on the property.

Answer 14

C. His grantor’s use of a quitclaim deed.

Question 15

A landowner gratuitously conveyed his interest in land to a friend by quitclaim deed. The friend promptly and properly recorded her deed. Six months later, the landowner conveyed his interest in the same land to an investor for $50,000 by warranty deed, which was promptly and properly recorded.

As between the friend and the investor, who has the superior right to title to the land?

A. The friend, regardless of the type of recording statute.
B. The friend, because she recorded prior to the investor’s recording.
C. The investor, regardless of the type of recording statute.
D. The investor, because it took by warranty deed rather than quitclaim deed.

Answer 15

A. The friend, regardless of the type of recording statute.

Question 16

Must a junior mortgagee be named as a party to a senior mortgagee’s foreclosure action?

A. No, because foreclosure does not affect interests junior to the mortgage being foreclosed.
B. No, because foreclosure extinguishes interests junior to the mortgage being foreclosed.
C. Yes, because it has the right to pay off the senior mortgage to avoid being wiped out by foreclosure.
D. Yes, because all those liens on the property are necessary parties to a foreclolsure action.

Answer 16

C. Yes, because it has the right to pay off the senior mortgage to avoid being wiped out by foreclosure.

Question 17

On February 10, an owner took out a $10,000 mortgage on her land with a bank. On February 15, the owner conveyed the land for $50,000 to a buyer who was not aware of the mortgage. On February 17, the bank recorded its mortgage interest in the land. On February 21, the buyer recorded his deed to the land.

Does the buyer hold the land subject to the bank’s mortgage?

A. Yes, in a race-notice jurisdiction.
B. Yes, regardless of the type of recording statute.
C. No, in a race-notice jurisdiction.
D. No, because the buyer was a bona fide purchaser for value who bought the land before the bank recorded its mortgage.

Answer 17

A. Yes, in a race-notice jurisdiction.

Question 18

A buyer purchased a parcel of land from a seller for $500,000. The buyer financed the purchase by obtaining a loan from the seller for $300,000 in exchange for a mortgage on the land. The seller promptly and properly recorded his mortgage. Shortly thereafter, the buyer gave a mortgage on the land to a creditor to satisfy a preexisting debt of $100,000 owed to the creditor. The creditor also promptly and properly recorded its mortgage. Within a year, the buyer stopped making payments on both mortgages, and the seller brought an action to foreclose on his mortgage. The creditor was not included as a party to the foreclosure action. The seller purchased the property at a public foreclosure sale in satisfaction of the loan. The creditor subsequently discovered the sale and informed the seller that it was not valid.

Who has title to the land?

A. The seller, because he gave a purchase money mortgage and the creditor’s mortgage was for a preexisting debt.
B. The seller, because the public foreclosure sale extinguished the creditor’s interest.
C. The seller, but he must redeem the creditor’s mortgage to avoid disclosure.
D. The buyer, because the seller’s foreclosure action was invalid without the inclusion of the creditor as a necessary party.

Answer 18

C. The seller, but he must redeem the creditor’s mortgage to avoid disclosure.

Question 19

An owner obtained a loan of $60,000 from a bank in exchange for a promissory note secured by a mortgage on his land, which the bank promptly and properly recorded. A few months later, the owner obtained another loan of $60,000 from a lender, in exchange for a promissory note secured by a mortgage on the land, which the lender promptly and properly recorded. Subsequently, the owner sold the land to a buyer for $150,000 and conveyed a warranty deed. The buyer expressly agreed with the owner to assume both mortgages, with the consent of the bank and the lender. A few years later, the bank loaned the buyer an additional $50,000 in exchange for an increase in the interest rate and principal amount of its mortgage on the land. At that time, the balance on the original loan from the bank was $50,000. Shortly thereafter, the buyer stopped making payments on both mortgages and disappeared. After proper notice to all appropriate parties, the bank instituted a foreclosure action on its mortgage, and purchased the property at the foreclosure sale. At that time the principal balance on the lender’s mortgage loan was $50,000. After fees and expenses, the proceeds from the foreclosure sale totaled $80,000.

Assuming that the jurisdiction permits deficiency judgments, which of the following statements is most accurate?

A. Bank keeps entire $80,000 and can proceed personally against the owner for its deficiency, while the lender’s mortgage remains on the land.
B. The bank keeps the entire $80,000, the lender’s mortgage on the land is extinguished, and both the bank and the lender can proceed personally against the owner for their deficiences.
C. The bank keeps $50,000, the lender is entitled to $30,000, and only the lender can proceed personally against the owner for its deficiency.
D. The bank keeps $50,000, the lender is entitled to $30,000, and neither the bank nor the lender can proceed personally against the owner for their deficiencies.

Answer 19

C. The bank keeps $50,000, the lender is entitled to $30,000, and only the lender can proceed personally against the owner for its deficiency.

Question 20

An elderly grandfather who wanted to ensure that his property would remain in the family after his death included the following clause in his will: “I give my house in the city to my son, but if he ever tries to sell it while he is alive, I want it taken away from him and given to my grandson.” The grandfather’s will was properly executed.

When the grandfather later died, what interests did the son and grandson take in the property?

A. The son took a fee simple.
B. The grandson took a fee simple
C. The son took a fee simple subject to an executory interest, and the grandson took an executory interest
D. The son took a fee simple determinable, and the grandson took a contingent remainder

Answer 20

A. The son took a fee simple.

This is a direct restraint on alienation –> makes it void.

Question 21

A woman owned 400 acres of land, half of which was densely wooded and the other half of which was almost entirely occupied by a large gravel pit which supplied gravel for her small landscaping business. A small house located on the edge of the pit was in very poor condition and had been vacant for many years. The woman transferred the 400 acres to her son for life, with the remainder going to a local charity on the son’s death. Now the son wants to increase gravel production and expand the pit by tearing down the house. He also wants to cut the trees on the wooded half and sell them for profit. The local charity, holder of the remainder, sues to enjoin the son from doing any of these things.

How will the court likely rule?

A. The charity can stop both the gravel mining and the tree cutting and can block the destruction of the house.
B. The charity can stop neither the gravel mining nor the tree cutting but can block the destruction of the house
C. The charity can stop the tree cutting but not the gravel mining or the destruction of the house
D. The charity can stop the gravel mining and the tree cutting but not the destruction of the house because it is dangerous and unfit for use

Answer 21

C. The charity can stop the tree cutting but not the gravel mining or the destruction of the house

Question 22

A landowner properly executed a warranty deed conveying her land to an animal shelter “so long as the premises are used for animal shelter purposes.” The animal shelter promptly and properly recorded the deed. A few years later, the landowner died intestate, with her husband as her only heir. The following year, the husband conveyed by means of a quitclaim deed “all of my interest” in the animal shelter land to his daughter from a previous marriage. The daughter promptly and properly recorded the deed. Last month, the animal shelter closed due to lack of funding. A domestic violence shelter wishes to use the land and petitions the court to allow it to take the animal shelter’s place.

If there is no applicable statute, the court should hold that title to the land is in which party?

A. The daughter, because the land is no longer used for animal shelter purposes.
B. The husband, because the interest he holds in the land is not transferable inter vivos.
C. The animal shelter, because no party has taken action to terminate its interest in the land.
D. The domestic violence sheter, because the court will likely apply cy pres.

Answer 22

A. The daughter, because the land is no longer used for animal shelter purposes.

Question 23

A woman owned two adjacent parcels. The east parcel fronts on a poor unpaved public road, while the west parcel fronts on a major highway. Fifteen years ago, the woman conveyed the east parcel to her son “together with a right-of-way 25 feet wide over the north side of the west parcel to the highway.” At that time, the east parcel was improved with a 10-unit motel.

Ten years ago, the woman died. Her will devised the west parcel “to my son for life, remainder to my daughter.”

Five years ago, the son executed a deed purporting to convey the east and west parcels to his friend in fee simple. The friend then enlarged the motel to 12 units.

Six months ago, the son died and the daughter took possession of the west parcel. She brought an appropriate action to enjoin the friend from using the right-of-way.

Who should prevail?

A. The daughter, because merger extinguished the easement
B. The daughter, because the friend has overburdened the easement
C. The friend, because he has an easement by necessity
D. The friend, because he has the easement granted by the woman to her son

Answer 23

D. The friend, because he has the easement granted by the woman to her son

Question 24

The owner of a house purchased a new home but decided to keep his old residence for a few months until the real estate market improved. He rented it to a tenant with the understanding that the tenant might have to move out in a few months if the house was sold. The tenant paid the owner the agreed rent of $100 per week every Friday.

During the next few months, the owner’s business suffered serious setbacks so he decided to sell his new home and move back into his old one. He informed the tenant that he would have to vacate the old home, but the tenant refused to vacate and tendered the $100 rental payment the following Friday, which the owner refused to accept.

The owner immediately filed suit to eject the tenant. The jurisdiction requires that a statutory written notice be served on any tenant whose term is for less than month-to-month or is not for a fixed term at least three days prior to commencement of eviction proceedings. No written notice of any kind was given to the tenant.

How should the owner characterize the tenant to gain immediate possession of his home?

A. As a tenant from month to month
B. As a tenant from week to week
C. As a licensee
D. As a trespasser ab initio

Answer 24

C. As a licensee

Question 25

A buyer purchased a tract home in a new development, putting up 10% of the purchase price as a down payment and financing the rest through a mortgage with a bank. After four years, the buyer put her house on the market, continuing to make all mortgage payments promptly. The buyer eventually sold the house to a third party, who took subject to the mortgage. After the third party took possession, the bank received no further mortgage payments from either the buyer or the third party.

In most states, which of the following best describes the remedy or remedies available to the bank?

A. The bank may foreclose on the land, but may not sue either the buyer or the third party on the underlying debt.
B. The bank may foreclose on the land, or it may sue the buyer on the underlying debt
C. The bank may forclose on the land, or it may sue the third party on the underlying debt
D. The bank may foreclose on the land, or it may elect to sue either the buyer or the third party on the underlying debt

Answer 25

B. The bank may foreclose on the land, or it may sue the buyer on the underlying debt

Question 26

A father gave his daughter marketable title to a five-acre parcel of undeveloped land that adjoined 200 acres of uninhabited forest owned by a neighbor. When she visited her property with her father, he mistakenly pointed out the boundary line. She subsequently staked out the boundaries and built a log fence along what she thought was the boundary line. Approximately an acre of the neighbor’s land was inside her fence. The daughter built a cabin and lived in it for 30 years until she had to sell the property for medical reasons.

The daughter entered into a contract to sell the land. In accordance with the contract, the purchaser had a survey of the land done, which revealed the boundary discrepancy in the legal description. The purchaser contacted the neighbor, who said he knew nothing of the matter and did not consent to the daughter’s placement of the fence on his property. The purchaser then refused to proceed with the purchase. The jurisdiction in which the parcel was located had a 20-year period of occupation to satisfy the requirements of adverse possession.

If the daughter sues for specific performance of the land sale contract, will she prevail?

A. Yes, because the daughter satisfied all elements required to make out adverse possession of the portion of the neighbor’s property within her fence
B. Yes, because the land sale K was unaffected by the minor discrepancy in the legal description
C. No, because the daughter’s title to the land is not marketable
D. No, because the daughter’s fencing in on the neighbor’s property was not hostile, even if the neighbor had no knowledge of her actions

Answer 26

C. No, because the daughter’s title to the land is not marketable

Question 27

Twenty years ago, a nephew received a deed to a farm as a gift from his aunt. The aunt’s deed was properly executed and delivered, and the nephew recorded. The nephew had no interest in farming, so he left the property alone for 10 years. At that point, he transferred all his rights in the farm by quitclaim deed to a neighbor who owned the adjacent land. The neighbor had a full-time job and did not farm the land but lived in the farmhouse for five years. He then took a job in a distant city for five years. When he returned, he learned that the aunt who made the initial transfer to her nephew had not in fact been the fee simple owner of the farm. The true owner of the property had just died and her daughter and sole heir demanded possession from the neighbor. The statutory period for adverse possession in the jurisdiction is seven years.

In a quiet title action, how should the court rule?

A. The neighbor takes title to the farmhouse and the entire farm by virtue of his adverse possession for over 10 years
B. The neighbor takes clear title to the farmhouse but not to the rest of the farm that was not actually possessed by him, which goes to the daughter
C. The nephew takes clear title because he had record title to the farm for over 10 years, more than the seven-year statutory period for adverse possession
D. The daughter is the fee simple owner of the farm

Answer 27

D. The daughter is the fee simple owner of the farm

Question 28

A landowner and her neighbor owned adjacent parcels of land. The landowner hired a contractor to install an in-ground swimming pool on her land. The day after the contractor had excavated for the pool, the neighbor’s storage shed, located on his property a few feet from the edge of the excavation, collapsed when the ground shifted. A riding tractor and patio furniture contained within the shed were damaged. The neighbor sued the landowner for damages. At trial, the neighbor established that the landowner’s project caused the subsidence and the damage to his property.

What else must the neighbor establish to prevail?

A. No additional facts
B. That his land would have been damaged without the storage shed
C. That the contractor was negligent
D. That his land would have been damaged without the storage shed or that the contractor was negligent

Answer 28

D. That his land would have been damaged without the storage shed or that the contractor was negligent

Question 29

A landowner leased 150 acres of farmland to a produce company for 15 years. The produce company used the land for crops along with several other contiguous acres that it owned or leased. About four years into the lease, the state condemned a portion of the leased property because it intended to build a highway. As a result, too little property remained for the produce company to profitably farm, although there still existed the farmhouse on the property, which was being used by one of its foremen. The produce company gave the landowner 30 days’ written notice that it considered the lease to have been terminated because of the condemnation.

In a suit for breach of contract, is the landowner likely to win?

A. No, because the condemnation made it economically undesirable for the produce company to continue to lease the property.
B. No, because when there is a condemnation, the tenant’s obligation to pay rent is extinguished.
C. Yes, because the produce company can still use the farmhouse, and the rental value would be adjusted accordingly.
D. Yes, because the condemnation did not affect the company’s obligation to pay the full rental price, although it’s entitled to share in the condemnation award.

Answer 29

D. Yes, because the condemnation did not affect the company’s obligation to pay the full rental price, although it’s entitled to share in the condemnation award.

Question 30

To secure a loan of $100,000 from a bank, the owner in fee simple of a parcel of land conveyed a deed of trust for the land to the bank. The deed of trust contained a “power of sale” clause, permitted by the jurisdiction, which allowed the bank to sell the property in the event of default without the necessity of a judicial foreclosure action. After several years, the owner defaulted on his loan payments to the bank. The bank informed the owner that it was exercising its power of sale. After appropriate notices, the bank conducted a public sale of the land. The bank was the sole bidder and obtained the property for $80,000, which was $10,000 less than the outstanding balance on the loan plus the expenses of the sale. One month later, the owner notified the bank that he wanted to pay off the loan and extinguish the deed of trust, and was prepared to tender $80,000 to do so. The bank insisted that the owner must tender $90,000 to pay off the loan.

If a court in the jurisdiction will require the bank to accept only $80,000 under the circumstances above, what is the likely reason?

A. The owner had the power to revoke the trust as long as he was alive.
B. The bank did not have the authority to bid on the property at other than a judicial foreclosure sale.
C. The owner was exercising a statutory power rather than an equitable power.
D. The bank does not have the power to clog the equity of redemption.

Answer 30

C. The owner was exercising a statutory power rather than an equitable power.

Question 31

A landowner was the owner in fee simple of a tract of land. The landowner conveyed the tract to her neighbor, “for life and then to the first child of my neighbor’s only sister who shall reach the age of 21.” The sister was unmarried and childless at the time of the conveyance. Five years later, the sister married, and she gave birth to a son the following year. When the son reached the age of 21, he brought an action in ejectment against the neighbor, who is still alive and living on the tract of land.

Which of these is the neighbor’s best defense against the son’s attempt to eject her?

A. The neighbor’s life estate was not subject to termination during her lifetime.
B. The son has no claim to the tract, because he was not living at the time of the landowner’s original conveyance.
C. A conveyance of the tract to the son violates the RAP.
D. The son’s interest, if any, would be that of a contingent remainder, and the contingency is the neighbor’s death.

Answer 31

A. The neighbor’s life estate was not subject to termination during her lifetime.

Question 32

A landowner possessed a 40-acre tract of land. He had inherited 30 acres and had possessed the other 10 acres for longer than the statutory period necessary to acquire title by adverse possession from a rancher. The landowner entered into a land sale contract promising to convey the 40 acres to a developer. The contract provided that the landowner would convey marketable title. The developer paid the landowner the purchase price and accepted a deed from him. The developer promptly recorded the deed. The rancher, having learned of the sale, brought a successful action against the developer to quiet title. The developer realized for the first time that there were no covenants for title in his deed. The developer brings an action against the landowner.

What is the most likely outcome of the suit?

A. The developer will win, because the landowner breached the terms of the K.
B. The developer will win, because the landowner misrepresented the size of the tract.
C. The landowner will win, because the terms of the deed control his liability.
D. The landowner will win, because the developer was negligent in not checking the covenants of title at the time of closing.

Answer 32

C. The landowner will win, because the terms of the deed control his liability.