Real Estate Section 2 "Title & Ownership" Quiz Questions

Which of the following forms of ownership are available only to married couples? Select one: a. Tenancy by the entireties. b. Community property. c. Both tenancy by the entireties and community property. d. Neither tenancy by the entireties nor community property.

Both tenancy by the entireties and community property apply only to married persons.

Each of the following statements about title is true, EXCEPT: Select one: a. A seller who has title which is reasonably free from doubt has marketable title. b. A seller who has color of title has a defect against the title. c. The chain of title is the history of conveyance and encumbrances of the property. d. The Torrens System is the most common method of recording title in the United States.

The FALSE statement is that the Torrens System is the most common method of recording title in the United States. It is actually somewhat rare.

A variance could be reasonably requested in each of the following instances, EXCEPT: Select one: a. A minor exception to a setback requirement. b. Rebuilding of improvements that were legally nonconforming but were destroyed by fire. c. A request by a developer to build a major shopping center on land which is zoned for residential use. d. All of these choices.

The correct answer is: A request by a developer to build a major shopping center on land which is zoned for residential use. Variances are for a single property to be exempted from requirements in cases that will not change the character of the neighborhood. The shopping center in a residential neighborhood would require a rezoning, not a variance.

Title to real property passes when a deed is: Select one: a. Executed. b. Acknowledged. c. Delivered and accepted by the grantee. d. Recorded.

The correct answer is: Delivered and accepted by the grantee.

Condominium owners come under which of the following? Select one: a. Homestead Act. b. Horizontal Property Act. c. Parallel Property Act d. Vertical Property Act.

The correct answer is: Horizontal Property Act. The law that governs condominiums is often called the Horizontal Property Act.

Which of the following would have priority at a foreclosure sale ordered by a court? Select one: a. 1st mortgage. b. Real estate tax lien. c. Judgment lien. d. Mechanic's lien.

The correct answer is: Real estate tax lien. Real estate tax liens have priority over all other liens, including mortgages.

An IRS lien is a general lien. Select one: a. True b. False

The correct answer is: True

The document that determines what type of improvements you can build in a certain area is: Select one: a. Master plan. b. Zoning ordinance. c. Spot zoning. d. Bulk zoning.

The correct answer is: Zoning ordinance. The zoning ordinance would dictate the type of improvements that you can build in a given area.

A joint tenant wants to sell his interest in a real property without the consent of the other joint tenants. Can he do this? Select one: a. Yes, because each joint tenant has separate ownership rights and can act independently of the other tenants. b. Yes, because survivorship is present in joint tenancy. c. No, because a single property titled in joint tenancy requires all co-owners to act together. d. No, because the unity of interest in joint tenancy demands that all co-owners act together.

One joint tenant may sell his or her interest independently of the others and without their consent, but could NOT sell the whole. Anyone who buys that interest will become a tenant in common with the other owners, not a joint tenant. The correct answer is: Yes, because each joint tenant has separate ownership rights and can act independently of the other tenants.

A special warranty deed would include which of the following covenants? Select one: a. A covenant of warranty. b. A covenant of quiet enjoyment. c. A covenant against grantor's acts. d. All of these choices.

The correct answer is: A covenant against grantor's acts. A special warranty deed contains only the covenant against grantor's acts. It only promises that the grantor has done nothing to cloud the title, but there are no assurances regarding previous owners.

Agnes has an interest in property and by virtue of her interest she may place a deed restriction on the property that will apply to any future owner. Her interest in the property would be: Select one: a. A life estate. b. A non-freehold interest. c. An easement. d. A fee simple estate.

The correct answer is: A fee simple estate. Only the holder of a fee simple estate has the right to place a deed restriction on the property. This is one of the rights of ownership included in the "bundle of rights" concept of ownership.

Which of the following is NOT a freehold estate? Select one: a. An interest in land for at least a lifetime. b. A lease which doesn't require rent payments. c. A life estate. d. A fee simple estate.

The correct answer is: A lease which doesn't require rent payments. A freehold is an interest in land for at least a lifetime. Life estates and fee simple estates are freeholds. All leases, regardless of the terms, are leasehold estates.

An owner's title insurance policy will protect against: Select one: a. The loss of property through foreclosure. b. A person who has a superior claim. c. Damage caused by a fire. d. Flood damage.

The correct answer is: A person who has a superior claim. Owner's title insurance protects an owner's TITLE against circumstances which happened before the effective date of the policy. Damage caused by fire or flood would be covered by homeowners insurance not title insurance.

Jean transfers a fee simple interest in her property to her daughter Lisa, but reserves for herself a life estate in the property. The interest that Lisa holds during Jean's life time is considered to be: Select one: a. An life interest, pour autre vie b. A remainder estate. c. A homestead interest. d. A reversionary interest.

The correct answer is: A remainder estate. Lisa holds an estate in remainder until Jean dies, then Lisa will own the property in fee simple. This is an estate in remainder because it reverts to someone other than the original grantor (Jean). If a grantor gets the property back after the death of the life tenant that would be an estate in reversion.

When the grantor authenticates the he is the owner of the property and that he is conveying title of his own free will, such action is referred to as: Select one: a. Authentication. b. Acknowledgment. c. Words of conveyance. d. Habendum.

The correct answer is: Acknowledgment. When the acknowledgment (usually before a notary public) is signed on a deed it indicates that the person, who signs the deed, is identified by name and that the person (grantor) is signing of his or her own free will. Do not be misled by the use of the word "authenticates" in the stem of the question.

The creation of an easement by prescription is analogous to: Select one: a. Adverse possession. b. Unlawful detainer action. c. Accretion. d. Police power.

The correct answer is: Adverse possession.

Which of the following statements about liens is ALWAYS true? Select one: a. A lien is an encumbrance on title. b. A lien arises from a debt. c. A lien creates a cloud on title when recorded. d. All of these choices.

The correct answer is: All of these choices.

A real property owner is being sued in court for personal debts. Title of the real property is encumbered by court order which provides that the court hold title to this real property until the suit is concluded. This encumbrance is called: Select one: a. An encroachment. b. An attachment. c. An appurtenance. d. Estoppel.

The correct answer is: An attachment. This action by the court is an attachment which constitutes a lien against both the real and personal property which are attached.

Charlie rents a house from Sally for five months. Charlie holds what type of estate in the house? Select one: a. None at all, since he does not own the house. b. An estate at will. c. An estate of periodic tenancy. d. An estate for years.

The correct answer is: An estate for years. Since a specific time period is mentioned Charlie holds an estate for years.

A quitclaim deed may be used to: Select one: a. Transfer ownership of a fee simple estate. b. Transfer interest in a life estate. c. Terminate an easement. d. Any of these choices.

The correct answer is: Any of these choices. A quitclaim deed CAN be used to transfer any interest in real property from one party to another. It is normally used for the transfer of an interest that is less than fee simple.

Private restrictions on the use of land may be created by: Select one: a. Deed. b. Written agreement. c. General restrictions in a subdivision's regulation. d. Any of these choices.

The correct answer is: Any of these choices. Private restrictions on the use of land may be created by any of instruments cited. These are restrictions that are placed on the property by the owner.

Asbestos would most likely be found where in a house? Select one: a. Around electrical wires b. In the paint c. Around the fireplace d. Around pipes

The correct answer is: Around pipes Prior to 1979, asbestos was a common building material and was used in floor tiles, ceiling tiles, roofing material and as insulation around pipes and heat ducts.

Which of the following items would be considered an encumbrance on a property? Select one: a. A lien. b. An easement. c. Both an easement and a lien. d. Neither an easement nor a lien.

The correct answer is: Both an easement and a lien. Both liens and easements are encumbrances.

The rights of a condominium owner are defined by the: Select one: a. Management agreement and the landlord-tenant laws. b. Bylaws and the condominium declaration. c. Bylaws and the corporate charter. d. Bylaws and the landlord-tenant laws.

The correct answer is: Bylaws and the condominium declaration. Condominiums have nothing to do with landlord-tenant laws and a corporate charter would involve a co-op. Condos are governed by their bylaws and their declaration of condominium.

Zoning laws are created and enforced by: Select one: a. City governments only. b. City and county governments only. c. City, county and state governments only. d. City, county, state and federal governments.

The correct answer is: City and county governments only.

An appurtenant easement may be terminated by all of the following EXCEPT: Select one: a. Merger of the dominant and servient estates. b. A deed by an owner of the easement releasing his or her interest. c. Abandonment by the dominant estate. d. Condemnation of the servient estate through eminent domain.

The correct answer is: Condemnation of the servient estate through eminent domain. An appurtenant easement could be terminated by both estates coming under one ownership; releasing the right of easement by the owner of the dominant estate; or the owner of the dominant estate not using the easement for a statutory length of time and indicating an intent to abandon. If the servient estate is acquired by a government through the right of eminent domain, the easement remains.

The process used to take property by the government when needed for a public use is known as: Select one: a. Eminent domain. b. Condemnation. c. Escheat. d. Allodial system.

The correct answer is: Condemnation. While the power to take property when needed for public use is eminent domain, but that's not the answer because the question asked about the process used to do so

A survey is made of Tony's property and it is found that a portion of the neighbor's garage is on his property. Tony is planning to sell his property. This encroachment of the garage onto his lot: Select one: a. Could cause his property to be uninhabitable. b. Could cause his property to be unmarketable. c. Gives him the right to remove it. d. Could create hypothecation.

The correct answer is: Could cause his property to be unmarketable. The neighbor's garage encroaches on Tony's property which could make the title to the property being sold unmarketable.

All of the following would be considered an involuntary alienation of property EXCEPT: Select one: a. Foreclosure. b. Eminent domain. c. Devise. d. Adverse possession.

The correct answer is: Devise. Alienation means to give up property. A devise is a gift of real property through a will, which is a voluntary act. Foreclosure, when the bank takes over the property and eminent domain, when the government takes over the property, are involuntary. Adverse possession can only come about WITHOUT the true owner's permission.

Upon his death, Mr. Williams left his house to his niece and his furniture to his nephew. The gift to the niece is best described as: Select one: a. Devise. b. Bequest. c. Decree. d. Assumption.

The correct answer is: Devise. Real property conveyed by a will is a devise. Personal property is a bequest.

The state decides to widen the highway. It will be necessary to use six feet of private property on each side of the highway. The owners do not want to give up the property for this purpose. The state has a right to take the property because of: Select one: a. Police power. b. Eminent domain. c. Condemnation proceedings. d. Zoning ordinances.

The correct answer is: Eminent domain. When the state takes property for the good of the public, it does so through the power of Eminent Domain.

Government can regulate land use any way they want. Select one: a. True b. False

The correct answer is: False Government restrictions on land use must be nondiscriminatory and promote the general welfare.

The owner of a condominium apartment holds which of the following interests in his or her individual living unit? Select one: a. Fee simple title in his unit. b. Fee simple title in the entire complex. c. Shares of stock. d. Tenancy in common with the other owners.

The correct answer is: Fee simple title in his unit. A condominium owner has a fee simple title (ownership) in his or her individual living unit, and is a tenant in common, with the other condo owners, in the common areas of the project.

Bob buys property with a "no fences" deed restriction. Bob proceeds to erect a fence to restrain his dogs. What may the neighbors do to prevent the erection of the fence? Select one: a. File for enforcement of the zoning ordinance. b. File a private court action for an injunction. c. Sue to enforce the building codes. d. File for condemnation under the eminent domain statute.

The correct answer is: File a private court action for an injunction. His is not a zoning ordinance, but a deed restriction. To prevent such action the neighbors would file for an injunction to prevent the owner from building a fence.

Three children are named in their father's will to receive his real property. Each is to receive an equal interest. Collectively, they agree to sell the property and split the proceeds. What should they do? Select one: a. File in the testate court. b. Enter an intestate interpleader. c. File the will for probate. d. Locate a broker and put the property on the market.

The correct answer is: File the will for probate. Legally the children own the property as title passed when Daddy died. However, the property is part of the estate and the proceeds may be needed to satisfy priority debts. The kids cannot sell the property until the will has gone through the probate process.

Which of the following deeds creates the greatest liability for the grantor? Select one: a. Quitclaim deed. b. Bargain and sale deed. c. General warranty deed. d. Special warranty deed.

The correct answer is: General warranty deed. A general warranty deed is a conveyance by which the grantor fully warrants, or guarantees, clear title to the real estate being sold and therefore has the highest liability for the grantor (the seller).

Jones, Smith, and Williams own property as joint tenants. Which of the following is true? Select one: a. If Jones dies, Smith and Williams will own property as tenants by the entireties. b. If Jones dies, Smith and Williams will own the property as tenants in common. c. If Jones and Smith die, Williams will own the property in severalty. d. If any one of the owners die, the property goes to the heirs of the deceased owner

The correct answer is: If Jones and Smith die, Williams will own the property in severalty. When the parties hold the property as joint tenants "rights of survivorship" apply to the surviving tenants; the interest of the deceased owner passes to the surviving owners and they still would own the property as joint tenants. In answer C, only one of the tenants is alive so he owns the property in severalty.

Bob and Carol and Ted and Alice bought a property as joint tenants many years ago. Alice is now the sole survivor of this group. How does Alice own this property? Select one: a. As sole joint tenant. b. As a tenant-in-common. c. In severalty. d. As a devisee.

The correct answer is: In severalty. As each of the joint tenants died, the survivors automatically received the interest of the deceased by survivorship. Alice now owns the property by herself, which is ownership in severalty.

A buyer is considering the purchase of some vacant land. The buyer notices a well-worn path near the edge of the property line. What type of notice would this buyer have regarding an easement across this property? Select one: a. Actual notice. b. Constructive notice. c. Inquiry notice. d. No notice whatsoever.

The correct answer is: Inquiry notice. The buyer would be expected to inquire whether the path constitutes an easement, so this would be considered inquiry notice.

A local government changed the zoning on a large parcel of property. As a result of the zoning change, the property has decreased in value. The government: Select one: a. Is required to compensate the owners an amount equal to the appraised value of the property prior to the rezoning b. Must pay the owners the difference between the present value and value prior to rezoning c. Is not required to pay anything d. Is exercising it's power of eminent domain

The correct answer is: Is not required to pay anything When property is rezoned the government is NOT required to pay the owners for the decrease in value. This is an example of police power, NOT eminent domain. If the property had been taken under eminent domain, the government would be required to pay "just compensation" for it.

How can the extent of an encroachment always be discovered? Select one: a. Physical observation. b. Land survey. c. Title search. d. Court action.

The correct answer is: Land survey. A land survey done by a professional surveyor determines the boundaries of the property. When doing the survey the surveyor will find any encroachments which are physical in nature.

Which of the following is NOT a leasehold estate? Select one: a. Estate at will b. Life Estate c. Estate at sufferance d. Estate for years

The correct answer is: Life Estate A life estate is a freehold estate, not a leasehold estate.

An owner has been using a parcel of land for heavy industrial purposes. The district in which the property is located is presently zoned for business/commercial use. If the owner is allowed to continue with the industrial use of the property, this is an example of a: Select one: a. Violation of the zoning requirements. b. Non-conforming use. c. Zoning variance. d. Special use permit.

The correct answer is: Non-conforming use. This is an example of a non-conforming use. The use of the property at one time was legal. The zoning has been changed and the continued use for industrial purposes no longer conforms to current regulation but is allowed because it is "grandfathered" in.

In order to examine a recorded deed, which of the following is necessary? Select one: a. Written permission of the owner. b. An inquiry notice. c. A court order. d. None of these choices.

The correct answer is: None of these choices. Deeds are part of the public records and any person may go to those records and review them.

If an option to purchase real estate expires 7/15 without the optionee exercising his option, what must the owner do to release the property from option? Select one: a. Nothing. b. Obtain a release from the optionee. c. File a lis pendens. d. File a lien.

The correct answer is: Nothing. When the option expires, the property is automatically released from the option.

LUI scales that relate land, building coverage, and open spaces have become increasingly important in the development of: Select one: a. Condominium projects. b. PUDs. c. Time-shares. d. City planning.

The correct answer is: PUDs. LUI (Land Use Intensity) scales are used in the development of Planned Unit Developments (PUDs).

Three people own a piece of property as tenants in common. Two of the owners want to sell the property, but the third party does not. The two owners that want to sell could file a suit, against the third, for: Select one: a. Foreclosure b. Partition c. Detachment d. Severance

The correct answer is: Partition Filing a suit for partition is to ask the courts to partition the property or, if undividable, sell the property and divide the proceeds. A suit for partition can be used in situations that involve both joint tenants and tenants in common.

Several persons hold property as tenants in common. One of the owners dies. His interest in the property will: Select one: a. Pass to his heirs. b. Pass to the remainderman. c. Be equally divided among the other owners. d. Be divided between the other owners in direct proportion to their ownership interest.

The correct answer is: Pass to his heirs. Upon the death of a tenant in common, his or her interest in the property passes to the heirs of the decedent (tenant in common who died).

Pete purchased a home from Tony. He did not record his deed, but took immediate possession. Tony died a few months later and according to the terms of his will, the property was to go to his nephew, Bob. Bob knew his friend Angela was interested in buying a house. They went and inspected the property and Angela agreed to buy it, and later recorded her deed. Who owns the property? Select one: a. Angela, because she recorded the deed. b. Bob, because he must wait 18 months before he can sell the property. c. Pete, by virtue of the purchase from Tony. d. The state, because the will conveyed property that Tony no longer owned.

The correct answer is: Pete, by virtue of the purchase from Tony. Bob and Angela inspected the property, thereby having actual notice that Pete was in possession which should have been questioned. There could be a real fight in court, if Angela sues, but legally the property is Pete's.

A developer of commercial property is required to provide for off-street parking for tenants. This is an example of: Select one: a. Eminent domain. b. Taxation. c. Police power. d. Escheat.

The correct answer is: Police power. The county government would impose such a restriction on property owners. This is an example of police power.

A restrictive covenant in a deed could: Select one: a. Prohibit resale of the property to certain minorities b. Allow use of the property for purposes other than regulations contained in zoning ordinances c. Prevent the resale of the property to people with children d. Prevent the use of the property as a dance hall

The correct answer is: Prevent the use of the property as a dance hall A restrictive covenant MUST be legal. Answers A and C would be violations of the Fair Housing Law and answer B would violate local government zoning ordinances. A deed restriction could be more restrictive than zoning laws but cannot be LESS restrictive.

A lawsuit filed to formalize title obtain by adverse possession is called a(n): Select one: a. Quiet title action. b. Lis pendens. c. Suit for specific performance. d. Quitclaim action

The correct answer is: Quiet title action.

Which type of deed contains the least assurances from the grantor to the grantee? Select one: a. Bargain and sale deed. b. Quitclaim deed. c. Special warranty deed. d. General warranty deed.

The correct answer is: Quitclaim deed. A quitclaim deed contains no covenants. It simply gives up any claim the grantor MIGHT have in the property.

All are involuntary methods of conveying property EXCEPT: Select one: a. Quitclaim deed. b. Escheat. c. Condemnation. d. Adverse possession.

The correct answer is: Quitclaim deed. Quitclaim deed is not an involuntary method of conveying property.

Mr. Smith inherits a ranch in the Midwest and without having seen it, wants to sell it. Which is the best deed he can use to convey the ranch with the least liability to himself? Select one: a. General warranty. b. Bargain and sale. c. Quitclaim. d. Trustee's deed.

The correct answer is: Quitclaim. A quitclaim deed leaves the seller (grantor) open to the least liability as it conveys only that interest, if any, which the grantor has. A bargain and sale deed implies that the grantor has an interest in the property to convey to the grantee. A trustee's deed is one used by a trustee to convey real property.

Quincy sold Ralph a piece of property and transferred title to Ralph by quitclaim deed. Some time later it was determined by a court that Quincy did not own the property. Which of the following is true in this situation? Select one: a. Ralph owns the property because the court action was after he bought the property. b. Ralph has no interest in the property. c. Ralph can sue Quincy for misrepresentation. d. The court will order Quincy to return the money to Ralph.

The correct answer is: Ralph has no interest in the property. With a quitclaim deed the grantor is conveying only the interest that he has, IF ANY, and leaves the grantee with no guarantees. Quincy had no interest so he had nothing to sell and Ralph has nothing. Ralph has no basis for a suit. he should have checked it out before entering into the deal.

Which of the following is NOT essential to the validity of a deed? Select one: a. Name and signature of the grantor. b. Recording of the deed. c. Words of conveyance. d. Property description.

The correct answer is: Recording of the deed. A deed must include the following: the names of the parties. words of conveyance and a property description and the signature of the grantor(s). While it would be foolish not to record the deed, recording is not a legal requirement.

Which of the following would diminish a fee simple estate? Select one: a. Death of the owner. b. Sale of the property. c. Rental of the property. d. All of the above.

The correct answer is: Rental of the property. If the owner dies or sells property, he has nothing to diminish. If the owner rents his property, he gives up his right of possession thereby reducing his rights of ownership.

Under local zoning laws, the distance from the street to the front of any improvement on the property is known as the: Select one: a. Corridor b. Frontage c. Setback d. Offset

The correct answer is: Setback This is the definition of a setback. The distance "back" from the property line that any improvement must be.

Which of the following is NOT essential for a deed to be valid? Select one: a. Signature of the grantor. b. Signature of the grantee. c. Words of conveyance. d. Adequate description of the property.

The correct answer is: Signature of the grantee. All of these are essential to a deed EXCEPT the signature of the grantee. The only person required to sign the deed is the grantor or grantors.

A deed is given and creates a joint tenancy. To be recorded the deed requires: Select one: a. Signature of the grantor. b. Signatures of the grantor and all of the joint tenants. c. Signatures of the grantor and one of the joint tenants. d. No signatures, the act of recording serves as constructive notice of ownership.

The correct answer is: Signature of the grantor. The only signature required for the validity of a deed is the signature of the grantor.

On September 12, 2014 a residential property had the following liens filed against it: a 1st mortgage, a mechanic's lien and a special assessment. On May 20, 2015 a 2nd mechanic's lien was filed against the property. Which lien has priority? Select one: a. Mortgage. b. 1st mechanic's lien. c. Special assessment. d. 2nd mechanic's lien.

The correct answer is: Special assessment. The special assessment would have priority over all the other liens. Special assessments are a form of real property tax and property taxes have priority over other liens.

A buyer purchased a tract of land at a tax sale to satisfy the claim for delinquent taxes. If no one redeems the property during the statutory time period, the purchaser would most likely receive which of the following as evidence of ownership? Select one: a. Tax deed. b. Sheriff's deed. c. Certificate of title. d. Statutory warrant deed.

The correct answer is: Tax deed. A buyer of a property sold to satisfy delinquent taxes would receive a tax deed after the period of statutory redemption (if any) has expired.

Two unrelated persons own a property together. These owners could will their ownership share to their heirs if title was held in: Select one: a. Joint tenancy only. b. Tenancy in common only. c. Both joint tenancy and tenancy in common. d. Neither joint tenancy nor tenancy in common.

The correct answer is: Tenancy in common only. Co-owners could will their share if the property was held as tenants in common, but not if held in joint tenancy.

A corporation buying real property would take title under: Select one: a. Joint tenancy. b. Tenancy in common. c. Tenancy in partnership. d. Tenancy in severalty.

The correct answer is: Tenancy in severalty. In the eyes of the law, a corporation is considered one legal person, thus a corporation would take title to property as an individual, in severalty.

A country store located in a residential area burns down. Which of the following is most likely? Select one: a. The owner can rebuild the building exactly as it was. b. The owner may rebuild a store only if he obtains a variance. c. The owner may restore the building to its original condition. d. The owner may not rebuild at all.

The correct answer is: The owner may rebuild a store only if he obtains a variance.

An easement appurtenant can be terminated by all of the following EXCEPT: Select one: a. The owner of the servient tenement, by executing a deed releasing his easement interest. b. The owner of the dominant tenement, by executing a deed releasing his easement interest. c. The dominant and servient tenements are merged. d. The owner of the dominant tenement abandons his easement interest.

The correct answer is: The owner of the servient tenement, by executing a deed releasing his easement interest. It is the owner of the dominant tenement or estate ONLY who can terminate the easement appurtenant. The servient tenant is subject to the rights of the dominant tenant.

What do a writ of attachment, an easement in gross and a special assessment have in common? Select one: a. They are all court actions. b. They are all encumbrances. c. They are all taxes. d. They are all restrictions.

The correct answer is: They are all encumbrances. A writ of attachment, an easement in gross and a special assessment are all encumbrances on the property. An encumbrance is anything which would tend to diminish the value of that property.

Sam owns a unit in a cooperative. How are the property taxes on his unit financed? Select one: a. They are paid by the corporation from rent paid by Sam and the other unit owners. b. Sam pays them directly. c. They are financed by homeowners association dues. d. They are covered by the purchase price of the unit.

The correct answer is: They are paid by the corporation from rent paid by Sam and the other unit owners. All of the cooperative project is owned by the corporation, which pays the one tax bill issued on the entire property. The corporation uses the rents paid on the proprietary lease to pay the property taxes.

A condominium advertises a pool and tennis court, but they have not yet been completed. Which is correct? Select one: a. This is illegal advertising. b. It is allowed so long as the advertising states not yet completed. c. This is allowed if they are labeled not yet completed and a completion date is specified. d. This is allowed since the rule of caveat emptor reigns.

The correct answer is: This is allowed if they are labeled not yet completed and a completion date is specified.

The term "interval ownership" is associated with: Select one: a. Cooperatives. b. Time-shares. c. Condominiums. d. Planned unit developments.

The correct answer is: Time-shares. Time-shares are associated with the concept of "interval ownership," since the owner may only occupy the property for a specified period time each year.

A court action to remove a cloud from the title is called an action or suit: Select one: a. For specific performance. b. For title insurance. c. To quiet title. d. Of legal injunction.

The correct answer is: To quiet title. A court action (suit) for the removal of a defect, cloud, or claim against the title of a property is called a suit to quiet title.

Judgment liens are general, statutory, involuntary liens that attach to real and personal property. Select one: a. True b. False

The correct answer is: True

A title insurance policy would likely protect the policyholder against each of the following, EXCEPT: Select one: a. Unrecorded easements. b. Recorded deeds that were forged. c. Recorded deeds signed by a mentally incompetent grantor. d. Title problems caused by a confusion over similar names.

The correct answer is: Unrecorded easements. Title insurance policies ordinarily do not cover unrecorded documents, such as unrecorded easements.

Which of the following would be a difference between a condominium complex and a planned unit development? Select one: a. Planned unit developments are owned by a corporation. b. Whether or not they charge homeowners or community association dues each month. c. Whether or not the unit owners own the land. d. Whether or not there are rules governing the use of the common areas.

The correct answer is: Whether or not the unit owners own the land. In a PUD, the unit owners own the land on which the improvements are built. In a condominium all of the land is part of the common area and is owned by all of the unit owners as tenants in common.

A lady wants to build a porch on the back of her house. The new construction will extend beyond the rear setback restriction. In order for her to add the porch, she would be required to obtain a: Select one: a. Zoning amendment. b. Zoning variance. c. Non-conforming use permit. d. Spot zoning permit.

The correct answer is: Zoning variance. The lady would require a zoning variance. If the new construction would alter the basic character of the entire neighborhood, an amendment to the zoning ordinance would be required, but that is not the case in this instance. Spot zoning is illegal in most states. A non-conforming use is one that pre-existed the current zoning ordinances.

Which of the following is NOT a specific lien? Select one: a. a recorded property tax lien b. a mechanic's lien c. a judgment lien d. a mortgage lien

The correct answer is: a judgment lien A judgment lien is a general lien, not a specific lien.

A restrictive covenant would most likely be reinforced by... Select one: a. an injunction. b. eminent domain. c. a writ of attachment. d. a cease and desist order.

The correct answer is: an injunction. A restrictive covenant would most likely be enforced by an injunction obtained by the neighbors.

Which is specifically used to control density and overcrowding by regulating setbacks, building heights and percentage of open areas? Select one: a. PUD. b. master plan. c. spot zoning. d. bulk zoning.

The correct answer is: bulk zoning. Bulk zoning controls density and overcrowding through setbacks, building heights and open areas.

Condemnation is the means by which the state exercises its power of... Select one: a. eviction. b. estoppel. c. eminent domain. d. escheat.

The correct answer is: eminent domain. Condemnation is the means by which the state exercises its power of eminent domain.

Which of the following types of ownership CANNOT be created by operation of law, but must be created by the parties' expressed intent? Select one: a. community property b. tenancy-in-common c. joint tenancy d. tenancy at will

The correct answer is: joint tenancy A joint tenancy can be created by a deed or will, but not by operation of law.

The owner of a cooperative apartment unit. Select one: a. owns stock in a non-profit corporation. b. holds fee simple title that may be sold, mortgaged or leased. c. owns the unit in fee simple with an undivided interest in the common elements. d. holds title in partnership with unit owners.

The correct answer is: owns stock in a non-profit corporation.

A deed is acknowledged by... Select one: a. the grantor. b. a notary public. c. the grantee. d. the clerk of the court.

The correct answer is: the grantor. A deed is signed and acknowledged by the grantor.

If a person dies intestate leaving real property as part of her estate, her heirs will acquire title according to: Select one: a. a formal will. b. the law of descent and distribution. c. escheat. d. an administrator.

The correct answer is: the law of descent and distribution. When a person dies intestate (without a will), the heirs inherit the property under the state's law of descent and distribution.

The ownership of unities of time, title, interest, and possession are required in order to create: Select one: a. an undivided interest in the property as a whole. b. separate ownership. c. concurrent ownership. d. the right of survivorship.

The correct answer is: the right of survivorship. Joint tenancy requires the four unities and includes the right of survivorship.

Bob owns a property where the house is on the back of the lot. He sells the front half of the lot to Carol, reserving an access easement across the front lot. Which of the following statements is correct? Select one: a. Bob owns the servient estate. b. Carol owns the dominant estate. c. Bob owns the dominant estate, Carol owns the servient estate. d. Bob owns the servient estate, Carol owns the dominant estate.

The correct statement is that Bob owns the dominant estate (which benefits from the easement) and Carol owns the servient estate (which is encumbered by the easement).

Which of the following is NOT a correct statement about encumbrances? Select one: a. They are limitations on the rights of property owners. b. They are interests held by any person other than the property owner. c. Encumbrances restrict the use of the property. d. Encumbrances do not affect the title of the property.

The incorrect statement is that encumbrances do not affect title. They are in fact a burden on title and in some cases makes it difficult to sell the property.

The covenant whereby one warrants that he is the possessor and owner of property being conveyed is the covenant of: Select one: a. seizen. b. habendum. c. possession. d. further assurance.

The question describes a covenant of seizen.

The word "fee" means possession. Select one: a. True b. False

The statement is false. A fee estate would include the right of possession, but leasehold estates also include the right of possession but they are not fee estates.

Life tenants may do anything they want to with the premises of their life estate property. Select one: a. True b. False

The statement is false. A life tenant may not commit waste, must maintain the premises in good repair, and pay the mortgage, taxes, and insurance.

A deed restriction is when a grantor retains some rights to the land for himself. Select one: a. True b. False

The statement is false. It actually describes a reservation. A deed restriction limits some use of the property.

Suppliers can get a mechanic's lien only if they have an express, written contract for the material supplied. Select one: a. True b. False

The statement is false. Suppliers can obtain a mechanic's lien based on either an express or implied contract.

An abstract of title is a full summary of the title history, with a statement of all recorded liens and encumbrances. Select one: a. True b. False

The statement is true. An abstract of title is a full summary of the title history, with a statement of all recorded liens and encumbrances.

The wording in a deed "to B for the life of C" creates an estate known as pur autre vie. Select one: a. True b. False

The statement is true. The phrase "pur autre vie" means "for the life of another" and occurs in some life estates.

A clause in a deed stating that title would revert to the grantor, if the grantee operated a dance hall on the property, would be a: Select one: a. Condition b. Public control factor c. Variance d. Special use permit

This would be a condition of the deed contained in the granting clause. The grantee would hold something less than fee simple absolute title. The correct answer is: Condition