Section 9 Multiple Choice

Question 1

Fabulous Pools installed an inground pool at the Robinsons. However, Mr. Robinson lost his job just as the installation was complete, so he didn’t pay the balance on the job. The owner of Fabulous Pools recorded a lien on the property and placed it in public records. What is this known as?

Answer 1

1) Giving Actual Notice of the lien.
[A] 2) Giving Constructive Notice of the lien.
3) Creating a Lis Pendens so that the property couldn’t be sold without the balance being paid.
4) Acknowledgement of the lien.

Question Feedback
[Section 9B, Slide 18]

Question 2

Nikki rented a 1,200 square foot retail space with a rental rate of $11 per square foot at a CPI index of 1.1. The CPI increased to 1.6. How much will Nikki be paying for rent based on the new rental rate?

Answer 2

1) $16
2) $7.56
[A] 3) $19,200
4) $13,200

Question Feedback
[Section 9C, Slides 79-81] 1.6÷1.1=1.45454545; 1.45454545×11=$16; $16×1,200=$19,200

Question 3

Which of the following groups are an example of specific liens?

Answer 3

1) Judgment Lien and a Property Tax Lien
2) Income Tax lien and a Mortgage Lien
Submitted answer 3) Estate Tax Lien and a Vendor’s Lien
[A] 4) Construction Lien and a Mortgage Lien

Question Feedback
[Section 9D, Slide 12]1) Judgment Lien and a Property Tax Lien

Question 4

When is a quitclaim deed normally used?

Answer 4

[A] 1) To clear the title of possible trouble spots or clouds on the deed.

2) To guarantee that nothing has been done by the grantor that would become a cloud on the title.
3) To provide no expressed warranties against encumbrances
4) When the actual grantor is incapacitated and cannot sign the deed.

Question Feedback
[Section 9B, Slide 97]

Question 5

Which clause is important because it specifically states the intent to convey the property?

Answer 5

1) Habendum Clause
2) Further assurance
[A] 3) Granting Clause
4) Seisin Clause

Question Feedback
[Section 9B, Slide 65]

Question 6

The premises section of a deed must contain all of the following except which one?

Answer 6

1) Names of the parties to the deed
2) Address of the grantor and the grantee
[A] 3) Name of the lawyer giving an opinion of title
4) The date of the execution of the deed

Question Feedback
[Section 9B, Slide 65]

Question 7

Jessica took Ryan to court to force him to allow access to the main road from her property, which was land locked. The easement the judge ordered is an example of what?

Answer 7

1) easement appurtenant.
2) easement by prescription.
3) easement in gross.
[A] 4) easement by necessity.

Question Feedback
[Section 9C, Slide 41]

Question 8

Faith died intestate. After an extensive search, a brother was found. How does Faith’s property pass to her brother?

Answer 8

1) By Escheat
[A] 2) By Descent
3) By Devise
4) By Demise

Question Feedback
[Section 9A, Slide 63]

Question 9

Landlord Brady agreed to $5,000 a month rental base payment plus 5% of gross sales. At the end of the first year, the tenant had total gross sales for the year of $200,000. How much total rent did Landlord Brady collect for the year?

Answer 9

[A] 1) $70,000

2) $10,000
3) $60,000
4) $50,000

Question Feedback
[Section 9C, Slides 70-72] $5,000×12=$60,000; $200,00×.05=$10,000; $60,000+$10,000=$70,000

Question 10

Which clause must be included for a deed to be valid?

Answer 10

[A] 1) Habendum Clause

2) Appurtenances Clause
3) Covenant of Seisin
4) Covenant of Warranty Forever

Question Feedback
[Section 9B, Slides 78 & 79]

Question 11

Donald claimed Jake’s property through adverse possession. To have done so successfully, Donald would have to have done all of the following EXCEPT what?

Answer 11

1) Take actual possession of the property
[A] 2) Hide the fact that he was living there
3) Do so for a continuous period of 7 years
4) Paid taxes for the entire period

Question Feedback
[Section 9A, Slides 96-98]

Question 12

Kari has a lease for which she pays the landlord $900.00 a month. The landlord pays the property taxes, hazard insurance, and maintenance expenses. This is an example of what type of lease?

Answer 12

1) Net
2) Percentage
3) Variable
[A] 4) Gross

Question Feedback
[Section 9C, Slide 59]

Question 13

Which statement does NOT describe an owner’s title insurance policy?

Answer 13

1) The premium is paid only once - at time of issue
2) The policy may not be transferred from one owner to another owner
3) Damages are paid for any defect in the title not listed as an exception
[A] 4) The policy is issued for an amount equal to the unpaid balance of the mortgage

Question Feedback
[Section 9B, Slides 44-46]

Question 14

A deed often used by a bank to transfer a property that it had taken after foreclosure from the previous owner is known as what?

Answer 14

1) General Warranty Deed
2) Special Purpose Deed
3) Quitclaim Deed
[A] 4) Bargain and Sale Deed

Question Feedback
[Section 9B, Slide 94]

Question 15

Which matches the definition of a gross lease?

Answer 15

1) When the tenant pays fixed rent plus property costs such as taxes, insurance, and utilities.
[A] 2) When the tenant pays a fixed rent and the landlord pays the taxes, insurance and utilities.
3) When the tenant pays rent based on gross sales.
4) When the tenant pays a rent that can change in increments over time.