Real Property I
Requirements for a valid deed
1. Must be in writing 2. Contents - Identification of the parties (grantor and grantee) - Words of transfer (present intent to transfer needed) - Description of the property - Signature of the Grantor
Gerhard tired of his job as a mechanic for a large trucking corporation and decided to go into business for himself. He rented a small commercial space and went into business as an auto mechanic, and also made a few sales in auto parts. Gerhard was a good mechanic and a great salesman, but a horrible bookkeeper, and he soon was unable to meet his expenses. Generic Motors, Inc., from whom he had purchased auto parts wholesale, obtained a judgment against him for $4,000 and promptly and properly recorded that judgment in the County of Cork. By statute, a judgment lien is valid against any after-acquired property of the debtor. Gerhard had no assets, and although he obtained a job at a service station, he was unable to make any payments to Generic on its judgment. Gerhard moved to another city and opened another small auto shop on rented premises, with the same unfortunate result — collapse followed by a judgment in favor of Snappy Auto Parts Company in the amount of $3,000. Snappy recorded its judgment in the County of Cork. After a few more years as a wage slave, Gerhard decided to give self-employment one more chance. He had thought long on his past problems and concluded that he needed to own his own premises rather than rent. He persuaded his Uncle Max to lend him $30,000 to purchase a small lot and building in the dilapidated wharf area of the city; Max insisted that Gerhard execute a promissory note and mortgage in Max's favor. Max promptly recorded the mortgage in the County of Cork. This time, Gerhard's business went into the dumpster faster than ever — no one was willing to come to the disreputable wharf area to have their car serviced. Gerhard defaulted on the mortgage, and Max sought to foreclose. Generic and Snappy discovered Gerhard's asset and have intervened in the proceedings. By the time the property was sold at a judicial sale, land values in the wharf area were rising due to a rumored renovation project. A statute in the jurisdiction provides that a purchase money mortgage takes priority over all other interests attached to the land. After the costs of administration have been paid, how should the court allocate the remaining $32,000 in foreclosure proceeds? a) $30,000 to Max, $2,000 to Generic, and nothing to Snappy. b) $30,000 to Max, $1,000 to Generic, and $1,000 to Snappy. c) $4,000 to Generic, $3,000 to Snappy, and $25,000 to Max. d) $30,000 to Max, $2,000 to Gerhard, and nothing to Generic and Snappy, whose liens were wiped out by the judicial foreclosure.
a) $30,000 to Max, $2,000 to Generic, and nothing to Snappy.
The applicable statute in the jurisdictions reads as follows: "A conveyance of an estate in land shall not be valid as against any subsequent purchaser for value, except such persons having actual notice of it, unless the conveyance is properly recorded."What type of statute is this? a) A notice statute. b) A race statute. c) A race-notice statute. d) None of the above.
a) A notice statute.
In a majority of jurisdictions, which of the following disabilities will not toll the running of the statute of limitations for the purpose of adverse possession? a) At the time the adverse possession started, the true owner is currently serving in the army. b) At the time the adverse possession started, the true owner is in jail. c) At the time the adverse possession started, the true owner is 16 years old. d) None of the above.
a) At the time the adverse possession started, the true owner is currently serving in the army.
Bruno was a geologist who did some oil exploration work on land owned by Selland, at Selland's request. Bruno did not find any oil, but admired the desert property so much that he asked if Selland would be willing to sell any of it. After driving out to the property and discussing the matter, Selland agreed to sell Bruno a five-acre area the two of them paced off, which was bordered on the south by Arroyo Grande, a dry creek-bed that ran through Selland's parcel. Bruno wrote the following on a piece of notepaper: "I, Selland, agree to sell to Bruno, for $10,000, the five acres of land north of Arroyo Grande which we examined this day." Bruno added a statement that the property sold was part of Selland's 100-acre parcel, and included an accurate, unambiguous description of that 100-acre parcel. Selland and Bruno read and signed the paper. A week later, Selland tendered to Bruno a deed to a five-acre portion of Selland's 100-acre parcel. Bruno, who had some familiarity with land surveying, believed that the description of the property conveyed in the deed did not refer to the five acres he and Selland had agreed to, and insisted that Selland execute a new deed accurately describing the property sold. When Selland refused, Bruno declared that their land sale agreement had been breached by Selland and that he would seek legal recourse. Bruno subsequently filed an action to recover damages for breach of the land sale contract against Selland. It was established at trial that the deed contained a legally adequate metes and bounds description of a five-acre portion of Selland's property, but that the five acres described in the deed were not the same five acres that Selland and Bruno had discussed. Selland raised as a defense to the breach of contract claim that the contract was unenforceable because it did not adequately describe the land that was to be conveyed. The court should find in favor of: a) Bruno, if he can produce extrinsic evidence sufficient to clarify the contract's description of the land to be conveyed. b) Bruno, because it is not a defense to an action for damages arising from breach of a land sale contract that the contract did not adequately describe the land to be conveyed. c) Selland, because Bruno's rights merged into the deed, which contained a legally sufficient description of the land conveyed. d) Selland, because extrinsic evidence may not be admitted to supply a legally sufficient description of land to be conveyed in a land sale contract which lacks such a description.
a) Bruno, if he can produce extrinsic evidence sufficient to clarify the contract's description of the land to be conveyed. The Statute of Frauds requires that a contract for the sale of land be evidenced by a writing. One element that must be present as to any writing offered to satisfy the statute is that the land to be sold must be adequately described. The description must be such as to enable a court to determine with reasonable certainty what property was intended by the parties to be covered. Most courts admit extrinsic evidence to clarify a written description contained in a contract for sale of land.
Which of the following is not a type of notice? a) Cumulative. b) Constructive. c) Actual. d) Inquiry.
a) Cumulative.
Buddy negotiated and obtained a written option to purchase Wilson Acres from Sally who was the record owner. The price was $500,000 and the option fee was $10,000, which Buddy paid to Sally. The next day Buddy gave Charlie an option to purchase the land for $600,000 plus an option fee of $15,000, which Charlie paid to Buddy. One week later, Charlie exercised his option, and within 10 days' time, Buddy was able to exercise his option with Sally and to obtain title to Wilson Acres. Thereafter, Buddy tendered his deed to Charlie, but Charlie refused to go through with the deal on the ground that Buddy did not have title to the land when Buddy gave the option to Charlie. Buddy brought an action against Charlie for specific performance or, in the alternative, for damages, if the court denied the request for specific performance. Charlie counterclaimed for rescission of the contract. In this action, the court will most likely: a) Grant specific performance of the contract to Buddy because Buddy had a valid option to purchase the property from Sally. b) Deny specific performance, because the legal remedy of damages is adequate and award those damages to Buddy. c) Deny specific performance, but permit Buddy to retain the $15,000 option fee. d) Rescind the contract because Buddy did not have title at the time he contracted with Charlie and require Buddy to refund the $15,000.
a) Grant specific performance of the contract to Buddy because Buddy had a valid option to purchase the property from Sally. It is well established that "land is unique" and that a buyer is entitled to specific performance. The majority view, however, is that the seller is also entitled to specific performance. Damages are considered an inadequate remedy because they still leave the seller with his land which he wants to sell because the owner of land has certain duties and burdens that damages cannot remedy.
Which of the following statements is true? a) If a grantor expressly reserves the right to reclaim a deed prior to delivery, the relation-back doctrine will not be applicable. b) If an escrow agent testifies that she would have returned the deed to the grantor upon request, the relation-back doctrine is inapplicable. c) In an escrow situation, the effective date of delivery of the deed is the date the escrow agent delivers the deed to the grantee. d) All of the above.
a) If a grantor expressly reserves the right to reclaim a deed prior to delivery, the relation-back doctrine will not be applicable.
Real was the owner of several parcels of real estate in and around the Village of Ransey, but of only one parcel on State Street, or its vicinity. When her daughter Dot announced her engagement to marry, Real, as a wedding gift, executed deeds to her which purported to convey some of Real's land as follows: Deed 1: "All of my real estate known as 123 State Street, Ramsey, and consisting of one-half acre with a two-unit dwelling house." Deed 2: "One acre of my 200-acre farm known as Real's Estate, being that acre containing the farm residence." In fact, the real estate known as 123 State Street was only one-quarter acre in size, and although there was a dwelling which had been used as a two-unit dwelling, its use as more than a single-dwelling unit violated zoning laws of the Village of Ramsey.The 200-acre farm known as Real's Estate contained only one building, a farm residence, which was located in the approximate center of the acreage.The description contained in Deed 1 was: a) Sufficient, because the discrepancy in area and the reference to the house as a two-unit dwelling are not fatal. b) Not sufficient, because it lacked a metes-and-bounds description adequate to identify it on survey maps. c) Not sufficient, because the acreage specified was not part of a correct description of the realty involved, and because the house was incorrectly described. d) Not sufficient, because a deed purporting to grant more than the grantor owns was incorrectly described.
a) Sufficient, because the discrepancy in area and the reference to the house as a two-unit dwelling are not fatal.
When dealing with the default on a loan, what is the effect of a creditor electing to sue in rem? a) The creditor is electing to foreclose on the property. b) The creditor is suing on the promissory note. c) The creditor is seeking to hold the debtor personally liable on the debt. d) All of the above.
a) The creditor is electing to foreclose on the property. If the creditor elects to sue in rem, this will involve real property issues because the creditor is electing to sue on the mortgage note. The way the creditor does this is by foreclosing on the property that is subject to the mortgage.
What is the legal effect of a forged deed? a) The deed is void. b) The deed is voidable. c) Extrinsic evidence should be admitted to prove the true intent of the grantor. d) The deed is valid.
a) The deed is void.
A has purchased the right to cross Blackacre (owned by B) in order to provide a second entrance to A's property, Whiteacre. A has purchased: a) an easement. b) a profit. c) a license. d) a right-of-way.
a) an easement.
The right of redemption: a) cannot be waived by the mortgagor in consideration for the granting of a loan. b) can be waived by the mortgagor in consideration for the granting of a loan. c) can be waived by the mortgagor in consideration for the granting of a loan, but only if it is waived in writing. d) can be waived by the mortgagee in consideration for the granting of a loan.
a) cannot be waived by the mortgagor in consideration for the granting of a loan.
A quitclaim deed: a) creates no covenants of title. b) creates only present covenants of title. c) creates only future covenants of title. d) creates present and future covenants of title.
a) creates no covenants of title.
A license can be created by: a) expressly. b) necessity. c) prescription. d) all of the above.
a) expressly.
An easement: a) is a non-possessory interest in land, allowing the use of the land of another. b) requires the construction of permanent improvements. c) is a personal right to use the land of another. d) all of the above.
a) is a non-possessory interest in land, allowing the use of the land of another.
The equitable right of redemption exists in every mortgage: a) regardless of its specific provisions. b) where there is express language creating it. c) unless the debtor expressly waives. d) where there is a statute that provides for it.
a) regardless of its specific provisions.
In a judicial sale: a) the court seizes the property and conducts the sale. b) the creditor seizes the property, and the court conducts the sale. c) the creditor seizes the property and conducts the sale. d) the court seizes the property, and the creditor conducts the sale.
a) the court seizes the property and conducts the sale.
Orville prepared a deed conveying Blackacre to Dee, and handed it to his attorney Lore, with instructions for delivery to Dee. Lore delivered the deed to Dee upon Orville's death in accordance with the instructions. Which of the following instructions by Orville to Lore would most likely have resulted in a valid delivery which effected a conveyance of the realty? a) "Unless you hear from me to the contrary, give this deed to Dee in case I die." b) "I am giving Blackacre to Dee. Give him this deed when I die." c) "I want Dee to have Blackacre after I am gone; give him this deed after my death." d) "I am about to undertake a dangerous mission. If I should be killed, give this deed to Dee."
b) "I am giving Blackacre to Dee. Give him this deed when I die."
The applicable statute in the jurisdictions reads as follows: "No conveyance shall be valid as against a subsequent purchaser whose conveyance is first duly recorded."What type of statute is this? a) A notice statute. b) A race statute. c) A race-notice statute. d) None of the above.
b) A race statute.
The following facts occurred in the following order: I. Oscar executed and delivered to Alpha a deed conveying his realty known as Greenacre for valuable consideration. II. Oscar executed and delivered to Beta, who knew of Alpha's prior unrecorded deed, a deed to Greenacre, also for valuable consideration. III. Beta duly recorded his deed. IV. Beta executed and delivered to Camma a deed to Greenacre for valuable consideration. Camma was unaware of Alpha's prior unrecorded deed. V. Alpha recorded his deed. VI. Camma recorded her deed. Assume for the purpose of this question only that litigation between the parties is determined in a jurisdiction which has the following statute: "Every conveyance of real estate which shall not be recorded shall be void as to any subsequent purchaser for value and in good faith, whose conveyance shall be first duly recorded."Assume further that the recorder of the jurisdiction involved maintained no tract index. In litigation between Alpha and Camma regarding title to Greenacre, who will win? a) Alpha, because he was the first grantee. b) Alpha, because Beta purchased with notice of Alpha's deed. c) Camma, because she was a subsequent bona fide purchaser without notice, and Alpha had not recorded at the time Camma purchased. d) Camma, because Beta would prevail against Alpha, since Beta recorded first.
b) Alpha, because Beta purchased with notice of Alpha's deed.
The proceeds from a foreclosure are paid out in which order? a) Balance owed on senior mortgage, balance owed on the junior mortgage, costs of sale, debtor. b) Costs of sale, balance owed on senior mortgage, balance owed on the junior mortgage, debtor. c) Balance owed on senior mortgage, costs of sale, balance owed on the junior mortgage, debtor. d) Balance owed on the junior mortgage, balance owed on senior mortgage, costs of sale, debtor.
b) Costs of sale, balance owed on senior mortgage, balance owed on the junior mortgage, debtor.
The requirements for a valid conveyance are a valid deed and what else? a) Delivery of that deed by the grantor, acceptance of that deed by the grantee, and recording of that deed. b) Delivery of that deed by the grantor, and acceptance of that deed by the grantee. c) Delivery of that deed by the grantor. d) Acceptance of that deed by the grantee.
b) Delivery of that deed by the grantor, and acceptance of that deed by the grantee.
Which of the following constitute entering under "color of title?" a) Claiming land as your own. b) Entering under a mistaken believe in the validity of a deed to property. c) Having a hostile intent to the true owner. d) All of the above.
b) Entering under a mistaken believe in the validity of a deed to property.
Which of the following index systems is used in the majority of jurisdictions? a) Tract. b) Grantor-Grantee. c) Race-Notice. d) Inquiry.
b) Grantor-Grantee
Which of the following statements is true? a) A profit does not carry with it easement rights unless such rights are expressly included. b) If easement rights are not expressly included with the granting of a profit, they are generally always impliedly included. c) The granting of an easement impliedly includes the granting of a profit. d) A profit never carries with it easement rights.
b) If easement rights are not expressly included with the granting of a profit, they are generally always impliedly included.
Under the Uniform Land Transactions Act, when will a land sale contract make time of the essence? a) Any time the land sale contract states "time is of the essence." b) Only if the land sale contract explicitly states that failure to perform at the time specified discharges the duties of the other party. c) Only if there are facts showing the time truly is of the essence. d) All land sale contracts are deemed to make time of the essence.
b) Only if the land sale contract explicitly states that failure to perform at the time specified discharges the duties of the other party. The ULTA therefore requires, if the contract is to make time of the essence, that it explicitly provide 'that failure to perform at the time specified discharges the duties of the other party.
Bob and Sam entered into a contract of sale in which Sam agreed to purchase Bob's farm. Bob was getting on in years and did not want the responsibility of operating and maintaining the farm, but he did not want to move out of his home. Thus, the entire contract of sale read as follows: "Bob agrees to sell his farm to Sam and Sam agrees to buy Bob's farm for $25,000, except that Bob shall be entitled to retain the single family residence and two acres surrounding the residence." The contract was signed by Sam alone. Subsequently, Sam changed his mind and decided he did not want to purchase the property. If Bob brings an action for specific performance of the land sale contract, Bob will: a) Prevail, because Sam signed the contract and the description of the property is sufficient as written. b) Prevail, because Sam signed the contract and the court can admit extrinsic evidence to determine which two acres surrounding the home the parties intended to exclude. c) Not prevail, because Bob did not sign the contract and the description is void for vagueness. d) Not prevail, because no time was set for performance of the contract.
b) Prevail, because Sam signed the contract and the court can admit extrinsic evidence to determine which two acres surrounding the home the parties intended to exclude.
On June 1, Sally and Burton entered into a written contract for the purchase and sale of Sally's real estate. The contract described the real estate, fixed a purchase price, required that it be paid in full and in cash upon delivery of a deed, and set a closing date of August 1, but was silent about the quality of title which Sally was required to convey. On July 25, Burton advised Sally that he would not go through with the transaction. On August 1, Sally tendered a deed, which Burton refused to accept. In an action by Sally against Burton for breach of contract, a court is most likely to hold that the contract of June 1: a) Was unenforceable because it was not sufficiently definite in its terms regarding the quality of title Sally was required to convey b) Required Sally to convey marketable title. c) Required Sally to convey whatever title she held on June 1. d) Required Sally to convey whatever title she held on June 1, together with any additional interest which she owned at the time of closing.
b) Required Sally to convey marketable title.
Which of the following is not a required inclusion in a valid deed? a) Signature of the grantor. b) Signature of the grantee. c) Words indicating a present intent to convey property. d) Identification of both the grantor and the grantee.
b) Signature of the grantee.
What is the effect if the grantor delivers a deed leaving the grantee's name blank with instructions that the person to whom the deed was delivered should fill in the name? a) The deed is forever void. b) The deed is void until a name is inserted. c) The deed is void if the grantor dies before the name is inserted. d) The deed is valid.
b) The deed is void until a name is inserted Plainly the deed is void until a grantee's name is actually inserted. But once this is done the majority of the cases sustain the deed...
A deed that requires the grantor to defend the title against all claims is: a) a quitclaim deed. b) a general warranty deed. c) a special warranty deed. d) none of the above.
b) a general warranty deed.
A purchases the right to take water from a spring on Blackacre (owned by B), including the construction of a pipe to carry water to A's property. A has purchased: a) an easement. b) a profit. c) a license. d) a right-of-way.
b) a profit.
Conveyance means: a) the deed. b) a transfer of title to property from a grantor to a grantee. c) the way that a specific parcel of land is described. d) the description of how land is owned.
b) a transfer of title to property from a grantor to a grantee.
Adverse possession requires: a) permission from the landowner. b) continuous adverse possession. c) at least 30 years of adverse possession. d) abandonment by the landowner.
b) continuous adverse possession.
Retention of the deed: a) creates a rebuttable presumption that the grantor has no present intent to transfer. b) creates a rebuttable presumption that the grantor has no present intent to transfer, absent clear evidence to the contrary. c) proves that the grantor has no present intent to transfer. d) prevents delivery.
b) creates a rebuttable presumption that the grantor has no present intent to transfer, absent clear evidence to the contrary.
Covenants of title are: a) enforceable by the seller. b) enforceable by the buyer. c) enforceable by either the seller or the buyer. d) none of the above.
b) enforceable by the buyer.
A valid deed requires a writing that: a) shows a present intent to transfer, adequately describes the property, and includes the signature of the grantor. b) identifies the parties, shows a present intent to transfer, adequately describes the property, and includes the signature of the grantor. c) shows a present intent to transfer, identifies the parties, and adequately describes the property. d) identifies the parties, shows a present intent to transfer, adequately describes the property, and includes the signatures of the grantor and the grantee.
b) identifies the parties, shows a present intent to transfer, adequately describes the property, and includes the signature of the grantor.
Recording: a) is one of the requirements for a valid conveyance. b) protects the rights of the grantee against subsequent claimants. c) is required in order for a deed to be effective. d) all of the above.
b) protects the rights of the grantee against subsequent claimants.
A gives B the right to fish in the pond on her land, Blackacre. After A sells Blackacre to C, C calls B and tells B to stop fishing in the pond on Blackacre. C has: a) attempted to interfere with B's easement, but has not terminated it. b) terminated B's license to fish in the pond on Blackacre. c) attempted to interfere with B's license, but has not terminated it. d) terminated B's easement to fish in the pond on Blackacre.
b) terminated B's license to fish in the pond on Blackacre.
How do the majority of jurisdictions treat a "death escrow"? a) A "death escrow" is invalid. b) A "death escrow" will fail unless the deed meets the requirements to be a valid testamentary instrument. c) A "death escrow" will be upheld utilizing a legal fiction of present delivery. d) A "death escrow" is valid because it effectively passes property on the death of the grantor.
c) A "death escrow" will be upheld utilizing a legal fiction of present delivery.
The applicable statute in the jurisdictions reads as follows: "Every conveyance of real property is void as against any subsequent purchaser or mortgagee of the same property in good faith and for a valuable consideration, whose conveyance is first duly recorded."What type of statute is this? a) A notice statute. b) A race statute. c) A race-notice statute. d) None of the above.
c) A race-notice statute.
Owen owned Blackacre, a 100 acre vacant tract of farm land in the state of Rural. Owen's son, James, in need of money, purported to sell Blackacre to Ben for $50,000. James gave Ben a forged but facially valid deed which properly described Blackacre as a 100 acre tract of farm land in the state of Rural. Ben took possession of Blackacre and began farming 80 of the 100 acres of Blackacre. Ben never made any use of the other 20 acres, but he continued farming the 80 acres of Blackacre for 25 years until Owen brought suit to eject him. Assume the state of Rural has adopted a 20-year statute of limitations for actions brought to recover possession or title to real property. Assume for purposes of this question only that Ben did not enter the property with a deed from James but instead entered the property without a deed but with the intent to claim all of Blackacre as his own. If Ben brings suit to quiet title to Blackacre after his 25 years of use, a court will find in favor of: a) Owen, because Ben's possession was not hostile. b) Owen, because Ben's possession was not sufficiently open and notorious. c) Ben, but only for the 80 acres of Blackacre he actually possessed. d) Ben, for all of Blackacre.
c) Ben, but only for the 80 acres of Blackacre he actually possessed.
The following facts occurred in the following order: I. Oscar executed and delivered to Alpha a deed conveying his realty known as Greenacre for valuable consideration. II. Oscar executed and delivered to Beta, who knew of Alpha's prior unrecorded deed, a deed to Greenacre, also for valuable consideration. III. Beta duly recorded his deed. IV. Beta executed and delivered to Camma a deed to Greenacre for valuable consideration. Camma was unaware of Alpha's prior unrecorded deed. V. Alpha recorded his deed. VI. Camma recorded her deed. Assume for the purpose of this question only that litigation between the parties is determined in a jurisdiction which has the following statute: "No conveyance of real property shall be good and effectual in law or equity against subsequent purchasers for value and without notice, unless the same be recorded according to law."In litigation between Alpha and Camma regarding title to Greenacre, who will win? a) Alpha, because Beta had notice of Alpha's deed, and Camma can get no better title than Beta had. b) Alpha, because Alpha recorded before Camma. c) Camma, because she was a subsequent bona fide purchaser without notice, and Alpha had not recorded at the time Camma purchased. d) Camma, because Beta prevailed against Alpha, since Beta recorded first.
c) Camma, because she was a subsequent bona fide purchaser without notice, and Alpha had not recorded at the time Camma purchased.
The requirements for a valid conveyance are a valid deed and what else? a) Delivery of that deed by the grantor. b) Acceptance of that deed by the grantee. c) Delivery of that deed by the grantor, and acceptance of that deed by the grantee. d) Delivery of that deed by the grantor, acceptance of that deed by the grantee, and recording of that deed.
c) Delivery of that deed by the grantor, and acceptance of that deed by the grantee.
In Bowlin v. Keifer, which of the following correctly states the dissent's rationale as to why the chancellor's decree should have been affirmed? a) The instrument issued by Guy G. Wade did not contain a sufficient description of the property to be conveyed. b) The instrument issued by Guy G. Wade did not contain words showing an intent to convey property. c) Extrinsic evidence could have been admitted to establish the property that was to be conveyed. d) All of the above.
c) Extrinsic evidence could have been admitted to establish the property that was to be conveyed.
Olex executed a mortgage in favor of Mort encumbering Blackacre, as security for a loan of money from Mort to Olex. Olex subsequently sold Blackacre to Tom. The deed from Olex to Tom stated that the conveyance was "subject to an existing mortgage" in favor of Mort. The obligation secured by the mortgage was later defaulted upon, and Mort brought an action against Tom to recover on the obligation. Tom asserted in defense that the deed established that he had not "assumed" the mortgage, and that Mort's only recourse was foreclosure. If Tom is held personally liable to Mort, it will be because: a) A grantee who takes "subject to" a mortgage is liable for the debt secured by the mortgage. b) Mort is subrogated to Olex's contractual right to proceed against Tom on his implied promise to pay the underlying debt. c) Mort can establish that Tom promised Olex in a separate document that he would pay off the mortgage. d) By assuming the benefit of the mortgage, Tom is estopped from denying his personal liability.
c) Mort can establish that Tom promised Olex in a separate document that he would pay off the mortgage.
Sam entered into a contract to sell Blackacre to Betty. On the date agreed upon, Betty paid Sam the purchase price, and he executed a deed to Blackacre in her favor. The next day, Betty learned that Sam had not been the holder of record title to Blackacre, and that he claimed to have acquired legal title to Blackacre by adverse possession. If Betty brings an action against Sam for recovery of the amount she paid him, judgment should be for: a) Betty, because Sam failed to convey marketable title to Blackacre. b) Sam, but only if he had already established his title arising from adverse possession in a judicial proceeding. c) Sam, if he conveyed title to Betty via a quitclaim deed. d) Sam, because title obtained by adverse possession is marketable title.
c) Sam, if he conveyed title to Betty via a quitclaim deed.
Which of the following statements regarding an easement by necessity is true? a) An easement by necessity requires the finding of a quasi-easement. b) Reasonable necessity will suffice for an easement by necessity. c) The necessity in question must be in existence at the time the ownership of the dominant and servient estate is severed. d) The necessity must continue for the statutory period.
c) The necessity in question must be in existence at the time the ownership of the dominant and servient estate is severed.
Bill owned Blackacre. On May 1, Bill conveyed Blackacre by warranty deed to Glen in exchange for $100,000. On May 15, Bill's son graduated from college and Bill executed and gave a deed to Blackacre to his son, Stu. On June 1, Stu recorded his conveyance from Bill, and on June 2 Stu sued Bill to determine ownership of Blackacre. The jurisdiction has a notice statute in effect. If the court rules in favor of Bill, it will be because: a) Bill paid value for Blackacre. b) Stu did not immediately record the conveyance. c) The property was a gift to Stu. d) All of the above.
c) The property was a gift to Stu. Since Bill was the first grantee, he presumptively owns the property under the general presumption that first in time is first in right. So, that fact that he paid value for Blackacre is irrelevant. Answers a and d are therefore wrong. Under a notice statute, for Stu to take ownership away from Bill, Stu would have to be a bona fide purchaser. Since the property was a gift to Stu, he did not pay value for Blackacre and therefore was not a bona fide purchaser.
A deed that requires the grantor to defend the title but only for claims relating to the period of the grantor's ownership is: a) a quitclaim deed. b) a general warranty deed. c) a special warranty deed. d) none of the above.
c) a special warranty deed.
A sells B the right to fish in the pond on her land, Blackacre. After A sells Blackacre to C, C calls B and tells B to stop fishing in the pond on Blackacre. C has: a) attempted to interfere with B's easement, but has not terminated it. b) terminated B's license to fish in the pond on Blackacre. c) attempted to interfere with B's license, but has not terminated it. d) terminated B's easement to fish in the pond on Blackacre.
c) attempted to interfere with B's license, but has not terminated it.
If the proceeds from a foreclosure are not enough to pay the mortgage, the unpaid balance due: a) is canceled. b) becomes a lien on the property. c) becomes a personal debt of the debtor. d) must be paid by the buyer at a foreclosure sale.
c) becomes a personal debt of the debtor.
Time is of the essence provisions: a) invalidate offers that are not timely accepted. b) prohibit options from lasting for more than 90 days. c) can be the basis for breach of contract when performance is not timely. d) require additional consideration to be enforceable.
c) can be the basis for breach of contract when performance is not timely.
Physical delivery of the deed: a) proves that the grantor has a present intent to transfer. b) creates a rebuttable presumption that the grantor has a present intent to transfer. c) creates a rebuttable presumption that the grantor has a present intent to transfer, absent clear evidence to the contrary. d) completes delivery.
c) creates a rebuttable presumption that the grantor has a present intent to transfer, absent clear evidence to the contrary.
With rights of redemption: a) both equitable and statutory must be exercised before the foreclosure sale. b) both equitable and statutory must be exercised after the foreclosure sale. c) equitable rights are exercised before the foreclosure sale; statutory rights are exercised after the foreclosure sale. d) equitable rights are exercised after the foreclosure sale; statutory rights are exercised before the foreclosure sale.
c) equitable rights are exercised before the foreclosure sale; statutory rights are exercised after the foreclosure sale.
The concept of the death escrow addresses what happens to a deed when the: a) escrow agent dies before delivery. b) grantee dies before delivery. c) escrow agent has been instructed to deliver a deed after the grantor's death. d) grantee has been instructed to claim a deed after the grantor's death.
c) escrow agent has been instructed to deliver a deed after the grantor's death.
A profit can be created by: a) implication. b) necessity. c) prescription. d) all of the above.
c) prescription.
When the debtor defaults, the creditor can: a) sue, but only on the promissory note. b) sue, but only on the mortgage. c) sue on the promissory note or on the mortgage. d) sue only on the mortgage, but only after suing on the promissory note.
c) sue on the promissory note or on the mortgage.
When a property subject to a mortgage is transferred, and the mortgage remains attached to the property but the grantee acquires no personal liability for the mortgage, the grantee: a) "assumes" the mortgage. b) "guarantees" the mortgage. c) takes the property "subject to" the mortgage. d) takes the property "not subject to" the mortgage.
c) takes the property "subject to" the mortgage.
Delivery requires: a) physical delivery of the deed by the grantor. b) physical receipt of the deed by the grantee. c) the grantor's present intent to transfer the property described in the deed. d) all of the above.
c) the grantor's present intent to transfer the property described in the deed.
When will a recorded deed not give constructive notice of its existence? a) The deed is recorded too early. b) The deed is recorded too late. c) The deed is recorded outside of the chain of title. d) All of the above.
d) All of the above.
Which of the following are needed to satisfy the physical requirement for adverse possession? a) Notorious possession. b) Exclusive possession. c) Actual possession. d) All of the above.
d) All of the above.
Which of the following grantees will be considered to have paid value for the acquired property? a) A grantee who pays full market value for the property. b) A grantee who pays an amount less than full market value, but deemed substantial under the circumstances. c) A mortgagee who is issued a mortgage at the time the mortgagee lends money to the mortgagor. d) All of the above.
d) All of the above.
Which of the following is a correct statement regarding the time for performance of a land sale contract? a) A land sale contract is not required to contain the time for performance of the promises made by the parties. b) The parties to a land sale contract can agree to the time performance is to occur, but are not required to do so. c) If the parties fail to specify a time for performance of a land sale contract, the courts will infer a reasonable time. d) All of the above.
d) All of the above.
Which of the following is not required for a valid deed? a) Notarization. b) Consideration. c) Recording. d) All of the above.
d) All of the above.
Which of the following statements regarding a private sale foreclosure is correct? a) A private sale foreclosure is not recognized by all jurisdictions. b) A private sale foreclosure is faster and cheaper than a judicial foreclosure. c) A private sale foreclosure is not a viable option unless the mortgage document specifically provides for it. d) All of the above.
d) All of the above.
Which of the following statements regarding an easement in gross is true? a) With an easement in gross, there will be no dominant estate. b) Generally, an easement in gross can be assigned by the easement holder. c) If assignment of an easement in gross is specifically prohibited by the creating instrument, such a prohibition will be enforced. d) All of the above.
d) All of the above.
Owen owned Blackacre, a 100 acre vacant tract of farm land in the state of Rural. Owen's son, James, in need of money, purported to sell Blackacre to Ben for $50,000. James gave Ben a forged but facially valid deed which properly described Blackacre as a 100 acre tract of farm land in the state of Rural. Ben took possession of Blackacre and began farming 80 of the 100 acres of Blackacre. Ben never made any use of the other 20 acres, but he continued farming the 80 acres of Blackacre for 25 years until Owen brought suit to eject him. Assume the state of Rural has adopted a 20-year statute of limitations for actions brought to recover possession or title to real property. The court should decide that title to the 100 acre parcel now belongs to: a) Owen, because Ben acquired title under a forged deed. b) Owen, because Ben made no use of the other 20 acres of Blackacre. c) Ben, because Owen is charged with constructive notice. d) Ben, under the doctrine of constructive adverse possession.
d) Ben, under the doctrine of constructive adverse possession.
Oscar was declared insane and committed to a state mental hospital in 1948. In 1955, Oscar executed and delivered to Robert a deed for Cattle Acre which is a 200 acre parcel of land enclosed by barbed wire fences. There is a solid wood fence running through the middle of Cattle Acre which separates the property into approximately equal segments, one on the west and the other on the east. Robert recorded the deed, entered the land, and began grazing cattle on the westerly parcel. Nobody besides Robert has been in possession of Cattle Acre since 1955 and Robert's possession has only been on the westerly parcel. The period of time to acquire title by adverse possession is 15 years, but there is an insanity disability rule in the jurisdiction which tolls the running of the time period. In 1965, Oscar was released from the hospital, but he took no action against Robert until 1978, when he brought an action to eject Robert on the ground that he, Oscar, held the paramount title to Cattle Acre.In this action, Robert will: a) Win, because he has acquired title to Cattle Acre by adverse possession. b) Win, but only as to the westerly parcel because that is the portion of the land which he actually occupied during his adverse possession. c) Lose, because Oscar can assert the defense of laches because Robert did not bring an action to quiet his title within a reasonable time after the statute had run. d) Lose, because Oscar was insane during the period 1955 to 1965.
d) Lose, because Oscar was insane during the period 1955 to 1965.
Sara was in a nursing home and asked Al, her attorney, to draft a deed which would give her farm to her son, Mich'l. Al drew the deed, had Sara properly execute it, and thereafter properly recorded the deed. Al then told Mich'l what he had done. Mich'l immediately went to the nursing home and told his mother, "I'm no farmer and I want nothing to do with the farm. Please take the deed back." A week later, Sara returned home. Shortly thereafter, Mich'l died without a will leaving his wife, Wanda, as his only heir. Sara has brought an action against Wanda to quiet her title to the farm. If Sara is successful in this action, it will be because: a) Mich'l's statement to Sara was a constructive reconveyance of the farm. b) The presumption of delivery arising from Al's recording of the deed had no effect because Mich'l was unaware of what was happening. c) Wanda is subject to a constructive trust to carry out Mich'l's intent. d) Mich'l never effectively accepted delivery of the deed.
d) Mich'l never effectively accepted delivery of the deed.
Olin wished to bid upon a valuable art object that was going to be offered for sale at auction. Olin asked to borrow $75,000 from Larry, but Larry was unwilling to transfer that much cash to Olin. Larry proposed that he accompany Olin to the auction, and if Olin bid successfully, Larry would pay for the art object on Olin's behalf. Olin agreed. To ensure that he would be repaid in this event, Larry insisted that Olin execute a mortgage as to Olin's property, Artacre, in favor of Larry. Larry promptly recorded this mortgage. A week later, Olin and Larry were subsequently killed in an airplane crash on the way to the art auction. Lucy succeeded to all of Larry's estate. She discovered that, one month prior to executing the mortgage in favor of Larry, Olin had conveyed Artacre to Matisse, who never recorded the deed. The jurisdiction has a notice recording act. Is Matisse's title to Artacre subject to Lucy's interest under the mortgage? a) Yes, because Lucy's interest is protected by the shelter rule. b) No, because Lucy was a donee grantee of Larry's interest in the mortgage. c) No, because recording acts do not operate in favor of mortgagees. d) No, because Larry was not a bona fide purchaser for value.
d) No, because Larry was not a bona fide purchaser for value.
Warren was the owner in fee simple of Goldacre, a well-developed piece of land. Warren entered into a contract with Paul, whereby Paul was to purchase Goldacre. The contract provided that, "because of economic uncertainties, time is of the essence in this contract." Both Warren and Paul signed the contract and the time for closing was stated in the contract as March 10. According to the contract, "on March 10, Paul promises to deliver the purchase money to escrow and Warren promises to deliver the deed to escrow." On March 7, Paul became seriously ill and was hospitalized. Due to his illness, Paul was unable to deliver the money to the escrow office until March 15. Due to the delay, Warren refused to go through with the sale agreement and Paul brought suit seeking specific performance of the contract. Paul will: a) Prevail, assuming Warren suffered no damages due to the delay. b) Prevail, because the short delay did not result in a material breach of the land sale contract. c) Prevail, because equity will not enforce a forfeiture. d) Not prevail, because Paul was late in tendering his performance under the contract.
d) Not prevail, because Paul was late in tendering his performance under the contract. A court will strictly enforce a "time is of the essence" clause in a land sale contract. If the buyer is late in tendering the purchase price (and the timeliness of performance has not been waived or otherwise excused by the seller), the seller's duty to tender the deed is discharged. The buyer will have no cause of action for breach of contract or to seek specific performance.
On February 26, Cell and Purch entered into a written contract for the sale of Cellacre, a parcel of land improved with a residence. The sale price was $50,000, with $5,000 paid on signing the contract. The balance was to be paid on delivery of the deed prior to April 15, and Cell was to remain in possession until that time. On March 10, prior to the closing, the house was struck by lightning and burned to the ground. The house was worth $40,000 and the land $10,000. Neither Cell nor Purch had insurance. After the fire, Purch asserted that the sale was rescinded because the subject matter of the transaction had been substantially destroyed. She also demanded the return of her deposit. Cell counterclaimed for specific performance. In a jurisdiction which has enacted the Uniform Vendor and Purchaser Risk Act, which of the following is the most likely result in the actions between Purch and Cell? a) Purch is required to purchase Cellacre without any abatement of the purchase price. b) Purch is required to purchase Cellacre, but with an abatement of the purchase price equal to the diminution in value which resulted from the damage. c) Purch is not required to purchase Cellacre, but is not entitled to the return of her $5,000 deposit. d) Purch is not required to purchase Cellacre, and is entitled to the return of her $5,000 deposit.
d) Purch is not required to purchase Cellacre, and is entitled to the return of her $5,000 deposit.
Mark had been searching for undeveloped acreage with water sufficient to support 100 head of cattle. He planned to start a cattle operation to provide an economic base for a dude ranch. He then planned to hire a ranch manager to run the cattle operation while he devoted his time to the design and construction necessary to draw the young wealthy set to his ranch. Mark learned that Robert had put 300 acres of his property on the market. The next day, Mark went to Robert's office and signed a contract for the purchase of the 300 acres. The contract specified a 10-day escrow because Mark was eager to get cows while the prices were low. Three days after Mark had executed the contract, he discovered that the back three acres of the property were covered by a swamp. A local zoning regulation regulating the use of wetlands prevented all building on the portion of the land covered by the swamp. Mark called Robert and told him the land was simply not adequate for his intended use. At the end of the 10-day escrow period, Robert tendered his deed. Mark refused to close the sale. Robert sued Mark for specific performance of the land sale contract. Mark claimed that the contract is unenforceable because title to the property is not marketable. What is the result? a) The contract is not enforced because Robert did not disclose the existence of the swampland. b) The contract is not enforced because the zoning regulation imposes an unreasonable restraint on construction. c) The contract is not enforced because the zoning regulation is a matter of public record which will cause the title to be unmarketable. d) The contact is enforced because the zoning regulation is not a title defect that makes Robert's title unmarketable.
d) The contact is enforced because the zoning regulation is not a title defect that makes Robert's title unmarketable.
On February 26, Cell and Purch entered into a written contract for the sale of Cellacre, a parcel of land improved with a residence. The sale price was $50,000, with $5,000 paid on signing the contract. The balance was to be paid on delivery of the deed prior to April 15, and Cell was to remain in possession until that time. On March 10, prior to the closing, the house was struck by lightning and burned to the ground. The house was worth $40,000 and the land $10,000. Neither Cell nor Purch had insurance. After the fire, Purch asserted that the sale was rescinded because the subject matter of the transaction had been substantially destroyed. She also demanded the return of her deposit. Cell counterclaimed for specific performance. In a jurisdiction which applies common law rules regarding risk of loss, which of the following arguments best supports Cell's position? a) Purch's claim is without merit since the subject matter of the sale is a parcel of realty, and the parcel is still in existence. b) Purch had an insurable interest as a result of the purchase contract, and if she neglected to insure against casualty loss, she did so at her peril. c) Since Purch contracted to purchase the realty, she accepted the risk of any fluctuations in value which resulted from foreseeable natural phenomena. d) The doctrine of equitable conversion regards the purchaser as an owner.
d) The doctrine of equitable conversion regards the purchaser as an owner.
Adverse possession can be thwarted by: a) permission from the landowner. b) a break in the adverse possessor's continuous possession. c) the landowner's eviction of the adverse possessor. d) all of the above.
d) all of the above.
Adverse possession: a) can change the ownership of real property. b) requires the adverse possessor's occupation to be open. c) requires the adverse possessor's occupation to be notorious. d) all of the above.
d) all of the above.
An easement can be created by: a) expressly. b) necessity. c) prescription. d) all of the above.
d) all of the above.
Escrow: a) can refer to commercial services. b) involves the use of a third party to deliver a deed. c) can be gratuitous. d) all of the above.
d) all of the above.
Foreclosure: a) refers to the mortgagee's enforcement against the property. b) can be done by judicial foreclosure. c) can be done by private sale. d) all of the above.
d) all of the above.
Mortgages: a) are given by the mortgagor to the mortgagee. b) are given by the borrower to the lender. c) are separate from the deed conveying the property in question. d) all of the above.
d) all of the above.
Mortgages: a) provide the lender with a security interest in a specific parcel of land. b) allow the lender to recover amounts loaned in the event of default. c) require certain notices and due process to protect the interests of the borrower. d) all of the above.
d) all of the above.
The laws relating to real property govern: a) land. b) leases of land. c) interests and rights in land. d) all of the above.
d) all of the above.
Time for performance: a) may consider local use and custom. b) can refer to the specific terms of the contract that address time for performance. c) may have to be determined from the context of the contract. d) all of the above.
d) all of the above.
A license: a) is a non-possessory interest in land, allowing the use of the land of another. b) is a personal right to use the land of another. c) can allow the holder to remove something from the real property of another. d) b and c.
d) b and c.
A profit: a) allows the holder to receive the revenues from real property of another. b) allows the holder to remove something from the real property of another. c) is a non-possessory interest in land, allowing the use of the land of another. d) b and c.
d) b and c.
Present covenants: a) are the covenants of seisin, right to convey, and against encumbrances. b) are the covenants of quiet enjoyment, warranty, and further assurances. c) apply to the state of title at the time of conveyance. d) both a and c.
d) both a and c.
Future covenants: a) are the covenants of seisin, right to convey, and against encumbrances. b) are the covenants of quiet enjoyment, warranty, and further assurances. c) apply to the state of title after conveyance. d) both b and c.
d) both b and c.
A warranty deed: a) creates no covenants of title. b) creates only present covenants of title. c) creates only future covenants of title. d) creates present and future covenants of title.
d) creates present and future covenants of title.
Time is of the essence provisions: a) are always implied from the circumstances of the contract. b) can be found in the express language of the contract. c) can be found in the communications between the parties. d) either b or c.
d) either b or c.
When a property subject to a mortgage is transferred: a) the mortgage is separated from the land and the debt is canceled. b) the mortgage is separated from the land and becomes a personal debt of the grantor, but only if the property is sold to a bona fide purchaser. c) the mortgage remains attached to the land. d) either b or c.
d) either b or c.
An adequate description of land can be made by: a) the use of metes and bounds. b) reference to monuments. c) the name of the property conveyed. d) one or more of the above.
d) one or more of the above.
The statutory right of redemption exists: a) in every mortgage, regardless of its specific provisions. b) where there is express language in the mortgage creating it. c) in every mortgage, unless the debtor expressly waives. d) where there is a statute that provides for it.
d) where there is a statute that provides for it.