Unit 2: Voluntary and Involuntary Alienation Unit Exam

What happens after a lien foreclosure sale if not enough money were made from the auctioning of the property to pay off the lien holders?

A deficiency judgment against the property owner for the outstanding balance to the lien holders is issued. A deficiency judgment is an option for a lien holder to collect the outstanding balance if the proceeds from the foreclosure sale are insufficient.

Which term is defined as land that is built up by water depositing sand, silt, or gravel?

Accretion

Lucy inherited some land. When she makes the drive to check on it about two years later, she finds that, to her surprise, someone is living in a small cottage on that property. What's this an example of?

Adverse possession

How can a foreclosure process be temporarily stalled?

By filing for Chapter 7 bankruptcy

Jerry's home has been in his family for nearly 75 years and sits smack dab in the middle of where a public university wants to expand. A government authority has made a fair offer for seizing Jerry's home as part of the process of taking someone's property called ______.

Condemnation Condemnation is the process of the government taking someone's property, but paying a fair price for it.

Eminent domain is the governments' power to take private land for public use. What is it called when the government actually seizes someone's property?

Condemnation The government's taking of someone's property is called condemnation. Regulatory taking is when the value of the land is diminished due to a governmental regulation.

In which method of involuntary alienation does a court decide how the proceeds from the sale of land owned by tenants in common will be distributed?

Court-ordered partition of property

Through which method of voluntary alienation does the grantor convey real property and transfer title to the grantee?

Deed

If Carol and Doug Shields died intestate, their estate would be conveyed to their heirs through which method of alienation?

Descent The method used would be descent, which is an involuntary form of alienation. Intestate means without a will.

Smalltown is building a new interstate exchange to facilitate access to shopping and restaurants. In order to do so, it purchased two homes and tore them down so the ramps to and from the interstate could be constructed. What principal allowed Smalltown to do this?

Eminent domain

Through which method of involuntary alienation may the government take private land for public use?

Eminent domain

Which term is defined as land lost due to water, wind, or other natural disturbances?

Erosion

When someone dies intestate with no heirs, the real property owned by that person may be taken by the state through _______.

Escheat

Which process temporarily stalls foreclosure?

Filing for Chapter 7 bankruptcy

Mark has been openly using a property without the owner's permission for the last 30 years. What else must he do to meet the adverse possession requirements?

Have a reasonable belief in his right to possess the property.

The Johnsons have owned a small restaurant for more than 20 years. It's open for lunch and dinner six days a week, and 80% of its weekday revenue comes from the happy hour drink and appetizer specials. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____.

Inverse condemnation

Conveyance of property by escheat is an example of _______ alienation.

Involuntary

Which form of alienation occurs without the owner's consent?

Involuntary

Which of the following is true about the right of redemption?

It requires the defaulting homeowner to repay all costs of the foreclosure sale plus any debt owed.

Keira's father leaves her some property in a tiny town. When she goes to see it a year or so later, she's surprised to see that a family lives in one of the property's outbuildings. All of the neighbors know that this family had been there for the past two years. This is an example of _______.

Open and notorious possession

Jerome has four grown children. When he dies, he leaves his home to all four children, making them tenants in common with equal shares. One child wants to live in the house, another wants to use it as investment property, and two others want to sell it and take the cash. When they can't agree on a solution, they end up in court and the property is ______.

Partitioned If tenants in common can't agree on the disposition of a property, they may end up with a court order to partition the property either physically or economically after a sale.

The state has seized a strip of Marge's land. It's relatively small but goes right through her sheep pastures. She just found out that the state will use it for a six-lane highway. She's pretty sure that the value of her land is going to plummet, and she can't figure out how to use it as pastureland anymore. What kind of involuntary alienation is she dealing with?

Regulatory taking This is an example of regulatory taking. This act happens when private property is regulated by a government authority to the detriment of the landowner.

How are creditors or lien holders paid during a foreclosure process?

The property is sold at auction and lien holders are paid from the proceeds of the sale. The lien holders are paid from the proceeds of the foreclosure sale. If the sale doesn't net enough to repay all lien holders, they're repaid in order of priority. Some junior lien holders may not get anything.

Which form of alienation occurs with the owner's consent?

Voluntary