Quizzes Flashcards
The Buyers interest under a contract of sale is?
Equitable title
What concept gives a vendee the right to sue the vendor for specific performance on a signed contract?
Equitble title
The contract of sale is also known as the:
Buy-Sell
The seller in a buy-sell contract situation is the:
VenDOR
The Vendee has:
Equitable title
A seller who defaults on a buy-sell may be forced to sell by being sued for:
Specific performance
Equitable title Gives the buyer the right to:
sue the seller for specific performance
If a potential buyer suspects that a listed property may have once been an oil refinery, the buyer should:
Include an environmental audit contingency provision in the offer
To be enforceable, a buy-sell must contain:
at least an accurate description of the property
a buy-sell obligates:
the seller to sell and buyer to buy
any person, including a real estate agent, may sign a buy/sell on behalf of either the seller or buyer if the seller or buyer has granted a/an?
power of attorney
a buy/sell which specifies that it is subject to a survey is an example of a contract with a/an?
Contingency
a stipulation in a contract for the purchase of a commercial building makes the purchaser ‘s obligation dependent upon obtaining a specific amount of lender financing
the purchaser is obligated to make reasonable efforts to obtain the financing
the title search is most likely going to be done by the:
title company
the document issued by the title company (abstractor) which first reveals to the buyer existing clouds on the title
title commitment
An advantage of an “extended coverage” title policy is that it may be used to provide coverage for:
Survey issues
Title insurance is usually paid for by:
the seller
an abstract of title contains references to deeds, easements, and mortgages only if they are:
recorded
A leaky roof would be covered by:
A home warranty
The general warranty deed is also known as a:
Warranty Deed
Which deed provides the best protection for a buyer?
General Warranty
Which deed gives no guarantees but transfers whatever ownership interest the grantor has?
Quitclaim deed
The deed most commonly used in America for both residential and commercial transactions is the :
Warranty Deed
What document is generally used to transfer ownership of personal property?
Bill of sale
Which deed guarantees that title is marketable?
General Warranty deed
The covenants of quiet enjoyment and further assurances are found in which deed?
General Warranty Deed
When selling housing, most developers use a :
General Warranty deed
The appropriate deed for a charitable donation is a:
Quitclaim deed
A valid deed requires each of the following EXCEPT:
Actual purchase price OR Signature of the Grantee
A valid deed must have:
The Grantee’s name
The Document evidencing the end of one persons ownership and the initiation of another persons ownership is the:
deed
Which covenant in a general warranty deed guarantees that the seller was the owner of the property and thus had the right to convey title?
Seisin
A quitclaim deed Conveys the same title as:
would be conveyed by a general warranty deed
Information available in the public records refers to:
Constructive notice
Information gained from personal observation or communication is:
Actual notice
Unrecorded deeds Are:
effective between the parties
Recording Creates:
priority
A buyer becomes the owner when the deed is:
Delivered to the grantee
In most states, real estate documents are recorded in the office of the:
County clerk and recorder
An authentication of a document made by signing the document under oath before a public official is known as:
Acknowledgment
Which document would NOT be recorded?
A salespersons employment contract with broker
A persons right to exceed those of the owner of record because the person has occupied the property for a long period of time. This appears to be an example of:
Adverse possession
Adverse possession is an example of the transfer of title to real property by:
Abandonment
Under adverse possession, an occupant may:
Aquire title
The process of governmental taking of private property is:
Condemnation
The power of the government to take private property is:
Eminent domain
A city wants to acquire right of way from private owners. The right of the city to do this is:
Eminent domain
A utility may force the sale of private property by:
Eminent domain
Without receiving any compensation, the transfer of privately owned property to the government is known as:
Dedication
If the identity of a property’s owner is unknown, the property reverts to the state government by the power of:
escheat
Just compensation must be paid for property transferred by:
Eminent domain
Which document would most likely contain a legal description of the property?
mortgage
Which document is most likely to be recorded?
mortgage
the mortgage borrower is referred to as the :
MortgagOR
The mortgage secures the:
note
the best evidence of the debt and promise to pay is the:
negotiable mortgage note
A mortgage is an example of a:
voluntary lien
Which document pledges property as security for a debt?
mortgage
A mortgage pledges property to:
secure a debt
A mortgage is used to defer:
part or full payment
If there is more than one mortgage, the priority of the mortgages is determined by the date that:
each is recorded
A mortgage must be signed by the:
MortgagOR
Which document personally obligates the borrower to repay the loan?
mortgage note
which mortgage clause grants priority to a later mortgage?
subordination clause
the priority of liens may be changed by a/an:
subordination clause
A subordination clause changes:
foreclosure rights
Which clause states: “The balance is due and payable upon default?”
acceleration clause
Which clause states: “The balance is due and payable upon sale?”
alienation clause or due at sale
The deed used when a defaulting mortgagor transfers the mortgaged property to the mortgagee to avoid a court foreclosure sale is known as a:
deed in lieu of foreclosure
Anyone signing a mortgage on behalf of an organization ( such as a business entity or charity) should insist on:
non recourse financing
A power of sale clause Allows a lender to:
foreclose without a court hearing
The deed which requires court approval is the:
Sheriff’s deed
When a mortgage note is paid in full, the title will be cleared by:
A certificate of discharge
The defeasance clause is initiated when the mortgagor:
pays off the loan
Prior to foreclosure sale, the mortgagor has:
an equitable right of redemption
After a foreclosure sale, the prior owner has:
A statutory right of redemption
A purchased a new home and financed the transaction at fidelity mortgage company. A defaulted and fidelity foreclosed. Unfortunately, the property did not sell for enough to pay off the balance due on the note. is A liable for the deficiency?
Yes, because A still owes the balance of the note
A mortgage creates a lien in favor of the mortgagee but does not:
transfer title to the mortgagee
If the seller keeps title until the purchase price has been paid, the parties have a:
land contract or contract for deed
Payment of all or part of the purchase price is deferred with which of the following?
Contract for deed or mortgage
The seller under a contract for deed ( installment land contract) retains:
title
The purchaser under a contract for deed is the:
VenDEE
A buyer bought a home using a contract for deed. If the last payment has not yet been made, the buyer:
may list and sell her equity
The buyer under an installment land contract (contract for deed) usually wants:
possession before making the last payment
Who wants the contract for deed to be recorded immediately?
the buyer
Under a contract for deed, the buyers default usually results in:
The forfeiture of all payments made
What interest does the seller have under a contract for deed?
title
Under a contract for deed, the buyer gets equitable title when:
the contract for deed is signed
Under a contract for deed, the buyer gets title when:
The final payment is made
Judgment liens are created by:
Lawsuits
A lis pendens provides notice that:
a judgment lien may occur
Judgment liens may arise from:
a lawsuit in state or federal court
To determine weather a property is involved in litigation, such as foreclosure, look for:
a lis pendens
A contractor who has not been paid may file a:
Specific lien
The recording of a homestead exemption form could protect a homeowner from:
a judgement lien involving failure to pay a hospital bill
The priority between liens may be changed by:
a subordination agreement
Tax liens are statutory liens which may lead to a:
tax foreclosure sale with an equitable right of redemption
A judgment could cause a debtor to lose his:
house, furniture, jewelry, and other property
Which lien has highest priority?
unrecorded tax lien
The best protection from a mechanics lien is provided by a contractors:
bond
Which lien is voluntary?
mortgage
Two mortgages, three construction liens, and a tax lien encumber the title of a parcel. The priority among the liens is determined by:
the type of lien
Which liens apply to both real and personal property?
judgment liens
A contractor has not been paid for erecting a new building for a car dealer. The contractor may file a mechanics lien against:
the building only
Easements, liens and restrictive covenants are:
encumbrances
Easements run with the land even if:
Ownership changes
The difference between a deed and an easement is that:
a deed conveys title but an easement conveys only a right
An easement was recorded on a plat mp in 1886. The easement has never been used. The property has been sold several times. Is the easement still enforceable?
yes, because easements run with the land
An appurtenance is a right which:
transfers with the land
Each of the following runs with the land if the property is conveyed EXCEPT:
a license
Retaining a right to place a commercial billboard on a property is an example of:
an easement in gross
Which may be terminated at any time?
license
An easement appurtenant:
runs with the land
A survey would assist a property owner in:
constructing driveways and other appurtenances
Which is the best example of an appurtenance?
A tree
Restrictions are land-use controls which:
limit the future use of the land and improvements
Private land-use controls are enforced by:
court injunctions
Unless there is prompt enforcement, a deed restriction may become unenforceable due to:
laches
Restrictive covenants are intended to:
limit the property’s future use
Is it legal for a seller to enforce the standard old restrictive covenant prohibiting occupancy by minorities?
No, because such restrictive covenants are not legally enforceable
B gave a parcel of property to her daughter. At the time of the transfer, B placed a restrictive covenant on the property. Can B later waive the restrictive covenant?
Yes
A restrictive covenant will most likely be enforceable by only the:
Owners of property within the subdivision
A restrictive covenant is created by:
a contract for deed
A condition differs from a restrictive covenant in that a violation of a condition results in:
forfeiture of the property
If more than one party claims to be the owner, the parties should ask a court to:
quiet title
Which deed is most commonly used to clear clouds on the title?
Quitclaim deed
What are the two ways to clear up a claim or cloud on the title?
Quitclaim deed and quiet title action
Can a trust deed be used to clear up a cloud on the title?
No, because a trust deed is a type of mortgage and the trust deed further clouds the title
If title to the property is not marketable:
The property may be sold anyway
A buyer would most likely conduct a quiet title action if:
A third party claims an interest in the property
A seller signed a deed with her married name rather than using the maiden name by which she had originally purchased the property- this creates:
A cloud when recorded
If there is a cloud on the title and the owner is unable to successfully negotiate for a quitclaim deed, the owner should file a lawsuit which is known as a:
Quiet title action
Which deed cannot be used to clear up clouds on the title?
trust deed
After occupying a property for the statutory period required for adverse possession, what should the adverse possessor do to clear up the title?
file a quiet title action
Building codes regulate reach of the following EXCEPT:
Property use
A neighborhood is going to be rezoned from residential to commercial. If you own the only vacant corner lot in the residential area, the value of your vacant corner lot will likely:
increase
What protects existing business owners from having to conform when zoning changes from commercial to residential?
nonconforming use
A Baskin Robins ice cream store is a nonconforming use in a residentially zoned area. The business is destroyed by fire. can it be rebuilt as an ice cream store?
No, the stores nonconforming use is terminated by the destruction of the property
Zoning would most likely regulate the:
setback
Property taxes are an exercise of:
the police power
An apartment house was built in an unzoned area. If the apartment house is later zoned single-family residential, the owner must:
Do nothing because the owner automatically has a nonconforming use
Before residentially subdividing a parcel of bare ground, the developer should first:
Check the density allowed by the city residential zoning regulations
A wants to build a pizza restaurant on a vacant lot but the setbacks won’t permit A to construct the restaurant. To resolve the problem, A should get a :
Variance or conditional use permit
The use of a planned unit development (cluster housing project) may be used to:
alter setback and density
State and local governmental regulation of real estate construction and transactions is done under the:
police power
The government protects consumers from shoddy home construction practices through the use of:
building codes
The licensing of real estate agents and the requirement of a trust account are examples of:
police power
Restrictive covenants are a:
private land use restriction
A contract of sale is signed by both parties. Prior to closing, the zoning changes and the property is now worth substantially more than the contract price. The contract of sale is:
Enforceable because there was no zoning
Assume that the restrictive covenants and the city zoning ordinance have different rules regarding maximum fence heights. The property owner should:
comply with both, thus, the most limiting of the two controls
Z and A signed a contract for sale for Z to purchase A’s bar and restaurant. Just days prior to closing, the city rezoned the property to residential use only. The contact of sale is:
still enforceable because there was no zoning contingency clause
If two unmarried persons own a parcel property. They are presumed to be:
tenants in common
ownership by one person is called:
severalty
If the last survivor will always take title, the parties are:
joint tenants
A property owned in a tenancy by the severalties could be owned by:
one person
A deed states that the grantees are “Gary Jung” and “Ron Zier” but the deed failed to state what type of tenancy was intended. There is a statutory presumption that the two owners are:
tenants in common
When asked by the buyers whether to hold title as joint tenants or tenants in common, the broker should recommend:
seeking the advice of a lawyer
A, B and C are joint tenants. C dies with a will designating an heir. C’s interest will go to:
A and B
Two buyers prefer to own their property with no right of survivorship. This is:
A tenancy in common
Riparian ( water) and mineral rights:
run with the land unless otherwise agreed
A, B and C are joint tenants. C sells her 1/3 to D. Which is correct:
A and B are joint tenants and D is a tenant in common
Surviving wives have a right called:
Dower
Surviving husbands have a right called:
Curtesy right
Which of the following indicates that the owner of the interest has the right to convey ownership of the property:
fee simple
A life estate for the life of another is:
pur autre vie
A transfers a life estate to B but A will get the property back when B dies. This is a life estate with a:
reversionary interest
Sam has a remainder interest in his mothers farm. His mother is living in a rest home. Can Sam sell his interest?
Yes, and the buyer will then own the farm when Sam’s mother dies
A transfers a life estate to B with a reversionary estate. B dies with a will naming the state government as B’ heir. Who gets the property?
A
The remainder will get a particular house when the life tenant dies. Axel desires to purchase the house and have fee simple title with an immediate right of possession. Axel should:
purchase the interests of the life tenant and remainder
The university purchased a home from Mr. Prescott. The deed specifies that Mr. Prescott could occupy the property as an owner for the rest of his life. But upon death, the university would become the sole owner. Prescott’s deed conveyed what interest to the university:
A remainder interest
A deeded a parcel of property to B. With the property to go to B’s heirs upon B’s death. In this situation:
A is the grantOR, B has the remainder interest, and B’s heirs have a revisionary interest.
A condominium involves A combination of:
fee simple ownership of each unit and a tenancy in common ownership of the common elements
A cooperative involves:
A leasehold interest in the unit and personal property interest in a share of stock
Which of the following is a condo “limited” common element?
an assigned parking spot
A condo owner sells by transferring a:
deed
The owner of a cooperative unit sells by transferring a:
share of stock
Assume the owner of several condo units have not paid their assessments for property taxes. Those units may be:
foreclosed upon separately from the other units
Assume that a cooperative has not paid its property taxes. This may result in:
a foreclosure of the entire cooperative complex
A new buyer has no liability for an existing mortgage when purchasing mortgaged property that is:
subject to the mortgage
A buyer purchased mortgaged property subject to an existing mortgage. The mortgage was foreclosed upon. Who Is liable for the deficiency?
the seller only
A buyer purchased mortgaged property and becomes personally liable. This is an example of:
an assumption
In which situation is a mortgagor released when mortgaged property is sold?
an assumption with a novation
An assumption with a novation is known as a/an:
full assumption
Which mortgage clause requires the balance to be paid in full when the property is conveyed?
alienation clause ( due on sale)
Which mortgage clause prevents a later purchaser from assuming the loan?
due on sale clause ( alienation )
Which clause is contained only in non assumable mortgages?
Alienation ( due on sale)
Which clause refers to the first step to be taken prior to foreclosure?
acceleration clause
An alienation clause may require which of the following to be paid in full when the property is sold?
the balance owning on the mortgage
If a mortgagor sells to a new buyer who takes over the payments on the old mortgage, what releases the mortgagor from liability?
novation
An offer from the seller back to the buyer in an?
counteroffer
A buyer offered 45,000 for a lot listed for 50,000. The seller counteroffer at 49,000. The buyer made an offer of 47,500. The seller rejected the offer. Several days later, the seller notified the buyer that the seller was accepting the 47,500 offer. This means:
No contract was created
A contract is created when the:
buyer is notified of the seller’s signed written acceptance of the offer
Prior to closing, the buyer learns that the zoning has been changed in such a way that the property is more valuable. The contract is:
enforceable
A buyer offered to buy a property for 50,000. The seller wrote back saying she would sell for 60,000. The sellers letter is:
a counteroffer and a rejection of the buyers offer
What does a counteroffer do to the original offer?
terminates it
A buyer makes an offer for 50,000. The seller changed the price to 55,000 and signed the document. The seller is now the:
offeror
May the broker accept full terms and a price offer for the seller?
yes, but only if the broker has a power of attorney
A buyer has delivered an offer to a seller. The seller may accept the offer by:
notifying the buyers agent
A promise for a promise is:
Bilateral
Every unilateral contract involves:
a promise for performance
The difference between unilateral and bilateral contracts is:
A performance obligation is required to create a unilateral contract, whereas multiple promises are exchanged to create a bilateral contract
A valid contract requires:
mutual consideration
Why is consideration required?
to satisfy the requirement of mutual obligations
Contracts of sale require:
consideration
On the day of closing, the seller agreed to lower the agreed selling price from 300,000 to 275,000. The 275,000 written agreement is not enforceable due to:
lack of consideration
A contract to purchase commercial property requires:
consideration
The statue of frauds requires real estate contracts of sale to be:
reduced to writing
A written contract is an example of a contract which is:
expressed
ALL written contacts are:
expressed
A contract which is notarized is:
acknowledged
A buyer signed a contract of sale but overlooked a clause which was clearly detrimental. Is the clause binding?
yes, because the buyer agreed to the terms of the contract
