Wrong Answer Rules

Question 1

Shifting Executory Interest

Answer 1

Divests the preceding estate upon the happening or non-happening of a stated event to a third person/grantee

Question 2

Contingent Remainder

Answer 2

1. subject to a condition precedent;
2. is created in favor of an unborn person; or
3. is created in favor of an existing but unascertained person.

Question 3

Vested remainder

Answer 3

a vested remainder is one that is limited to an ascertained person who has the right to immediate possession if and when the prior estate is terminated.

Question 4

Springing executory interest

Answer 4

created to begin in futuro and “cuts short” or termination a reversion held by the grantor.

Question 5

An effective gift requires a present transfer of an interest.

If the transfer is to take effect in future, it is a mere promise to make a gift and unenforceable for:

Answer 5

lack of consideration.

Question 6

True or False: An equitable service may be extinguished by the existence of conditions that make the purpose of the servitude impracticable, such as change in the character of the neighborhood from a residential to a business area.

Answer 6

True.

Question 7

True or False: Even though the deed made no mention of the restriction, a court will still imply a restrictive covenant.

Answer 7

True.

Question 8

what is a grantor-grantee index?

Answer 8

1. examination of the grantee index from the present backwards until the seller of the property is found

then

2. examination of the grantor index from that date forward to ensure that the seller has not previously conveyed the property.

Question 9

True or False: unrecorded deeds would not be in the grantor and grantee index and thus would not provide any notice, deed will be outside chain of title.

Answer 9

true.

Question 10

True or False: The seller has until the closing date to remove encumbrances and pay mortgages and buyer CANNOT rescind the contract before the closing date.

Answer 10

True.

Question 11

What is the doctrine of estoppel by deed/after-acquired property?

Answer 11

The doctrine of estoppel by deed arises when a person executes a deed purporting to convey an estate that either the person does not have or is larger than what the person has. If that person later acquires that estate, then the subsequently acquired estate passes to the grantee.

Question 12

True or False: A real estate broker has a duty to make full disclosure of any interest the broker or a family member of the broker may have in the purchase of the property.

Failure to make this disclosure breaches a fiduciary duty and results in the broker forfeiting the commission.

Answer 12

True.

Question 13

An area variance may be granted when:

Answer 13

1. the owner suffers a hardship due to the way the land is currently zoned; and
2. the variance will protect the public interest.

Question 14

True or False: Acceleration clauses are valid contract provisions a lender may use to require a borrower to repay an entire loan debt if certain requirements are not. They can also be triggered by the mortgagor’s failure to satisfy other conditions in the mortgage, such as timely payment of insurance premiums.

Answer 14

True.

Question 15

An “as is” clause will be enforced when:

Answer 15

there is no positive misrepresentation or fraudulent concealment.

Question 16

What is an easement in gross?

Answer 16

when the right of special use benefits the owner or possessor personally, rather than in connection with any land the holder owns.

Question 17

what are present covenants?

Answer 17

Present Covenants do not run with the land and can be breached only at the time of closing.

The buyer’s successors in interest are unable to sue on these covenants.

Question 18

what are the three types of present covenants?

Answer 18

1. Covenant of Seisin;
2. Covenant of Right to Convey; and
3. Covenant against Encumbrances.

Question 19

In order to gain priority of title in a race-notice jurisdiction, a subsequent party must be:

Answer 19

1. a bona fide purchaser for value without notice of any prior interests;

and

2. record first.

Question 20

What is required to show an abandonment of an easment?

Answer 20

1. a showing of non-use;

AND

2. act demonstrating intent to abandon.

Question 21

what a notice-type statute?

Answer 21

The Subsequent BFP WITHOUT notice prevails over the prior interest, whether the subsequent BFP records or not.

*Look for the last person that takes without notice.

Question 22

Under a race-notice statute, an unrecorded conveyance or other instrument is invalid against a:

Answer 22

Subsequent BFP for value, without notice, who records first.

Question 23

Shelter Rule

Answer 23

a person who is a successor in interest to a person protected by the recording statute is also protected.

Question 24

What three types of parties are not considered to be Bona Fide Purchasers and not protected under the recording statute?

Answer 24

1. Grantees that acquire property by gift or inheritance;
2. Adverse possessors; and
3. Judgment creditors who don’t purchase debtor’s property at a judicial sale.

Question 25

What is the covenant of further assurances?

Answer 25

a future covenant in which the grantor promises to take whatever steps may be required to perfect defects of title.

Question 26

future covenants are not breached until:

Answer 26

1. the grantee or his successor is evicted from the property;
2. buys up the paramount claim to avoid suit; or
3. is otherwise damaged.

Question 27

A junior mortgage is not extinguished by a foreclosure if the junior mortgagee is:

Answer 27

i.) NOT made a defendant in the judicial proceeding culminating in a foreclosure sale; and
ii.) does NOT receive notice of the foreclosure sale.

Question 28

When are restrictive covenants binding?

Answer 28

To be binding, a restrictive covenant must be placed on property at the time it is conveyed.

A burden CANNOT be attached to a lot at a later time by someone who has NO interest in the lot.

Question 29

Equitable Servitude;

Answer 29

An equitable servitude is a promise concerning the use of land that benefits and burdens the original parties to the promise, as well as their successors.

Question 30

An equitable servitude in a deed is only enforceable where a party can establish:

Answer 30

(i) intent for the restriction to be enforceable by subsequent grantees;
(ii) that the subsequent grantees had notice of the servitude; and
(iii) that the restriction touches and concerns the land

Question 31

What is a common scheme?

Answer 31

A common scheme typically exists in a subdivision. If enough lots have the same covenant, the court may bind all lots, including those without the written restriction.

Question 32

What is an Implied Reciprocal Servitude?

Answer 32

Implied Reciprocal Servitude is created when someone owns multiple adjacent lots and sells one of them with certain restrictions that benefit the remaining lots, the restrictions apply to all the lots, and the owner of the lots must follow the same restrictions as the buyer of the sold lot.

Question 33

True or false: privity is necessary to sue for a breach of warranty of quiet enjoyment.

Answer 33

True.

Question 34

In terms of a foreclosure sale, what is “fair” price?

Answer 34

A fair price is not necessarily the fair market price. Rather, it is arrived at a result of the mortgagee’s due diligence in conducting the foreclosure sale.

Question 35

The proceeds of a mortgage foreclosure sale will be distributed in the following order:

Answer 35

First: the costs of the sale;

Second: To the security interest foreclosed;

Third: to junior lienholders terminated by the sale; and then;

Fourth: To the mortgagor, if any proceeds remain.

Question 36

In a special warranty deed, the seller warrants that no title defects:

Answer 36

have occurred during his ownership of the property.

Question 37

Equal Dignities Rule

Answer 37

when the act performed by an agent is required by law to be in writing, the agent’s authority must ALSO BE IN WRITING.

The agent’s authority is valid if he signs the deed in the
presence of the grantor. If the agent signs outside the presence of the grantor, then the Statute of Frauds applies.