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WorksheetsTest 2: Encumbraces; Liens; Title Transfer and Recording; Leases
Total questions: 63
Worksheet time: 32mins
Which of the following describes an encumbrance?
A third party's right to encroach upon a property without the permission of the property owner.
A third party's right to claim the sale proceeds of a property that has been mortgaged as collateral
for a loan.
A third party's interest in a real property that limits the interests of the freehold property owner.
Another's right to acquire a frechold interest in a property against the property owner's wishes.
Which of the following is true of easements in general?
They involve the property that contains the casement and a non-owning party.
They apply to a whole property, not to any specific portion of the property.
They only involve the legal owner of the property.
They may require a specific use, but cannot prohibit one.
Mr. King wants to offer 100 acres of his property for sale. Since the property is landlocked, he will have to put in a driveway to the road that will run across his remaining property. What kind of easement will he have to grant?
An easement in gross.
A commercial easement.
A personal easement.
An easement appurtenant.
If property Alpha has a court-ordered easement across property Beta in order for Alpha to have access to a public road, the easement is a(n)
easement by prescription.
personal easement.
easement by necessity.
easement in gross.
An encroachment is
an easement that has not been recorded on the title of the burdened property.
an unauthorized physical intrusion of one property into another.
a right granted by a property owner to the owner of an adjoining property to build a structure that
protrudes across the property boundary.
a structure that does not comply with a zoning ordinance.
A court might grant an easement by prescription if
a town needs to dig a trench across an owner's property to install a sewer line to a neighboring
property, and the owner refuses permission.
a property owner sells the front half of a lot and wants to continue using the driveway to access
the rear of the lot.
a trespasser has been using an owner's property for a certain period with the owner's knowledge
but without permission.
a property owner wants to prevent the owner of an adjoining property from building a an
improvement that blocks her view.
The purpose of a deed restriction is to enable an owner to specify
the form of ownership in which a property may be held.
how long a property must be owned before it can be legally transferred.
what groups of people are legally excluded from future ownership of a property.
how a property may be used and what improvements may be built on it.
Melinda purchases a house and finances it. The lender in turn places a lien on Melinda's title. The lien in this mortgage transaction is
evidence of debt incurred by a property owner.
a promissory note granted by a property owner as security for a debt.
the creditor's claim against the property as collateral security for the loan.
the document required to clear clouded title.
In a lien-theory state, what kind of interest does a mortgage lender have in the liened property?
A possessory interest.
A tenancy-by-mortgagee interest.
A legal interest in a pro rata share of the property.
An equitable interest.
How is a lien terminated?
Payment of the debt that is the subject of the lien and recording of the satisfaction.
Transfer of the property that has the lien.
Recording of another lien that is superior.
Death of the lienor or lienee.
A judge rules in favor of the creditor in a court proceeding and places a judgment lien against all the debtor's assets, including his real property. This is an example of a(n)
voluntary junior lien.
involuntary superior lien.
involuntary specific lien.
involuntary general lien.
A real estate tax lien, a federal income tax lien, a judgment lien, and a mortgage lien are recorded against a property. Which lien will be paid first when the property is sold?
Real estate tax lien.
Federal income tax lien.
Judgment lien.
Mortgage lien.
A lien holder can change the lien priority of a junior lien by agreeing to
change the date of recording.
lower the amount of the claim.
cancel the lien.
subordinate the lien.
Which of the following accurately describes the act of foreclosure?
A court-ordered acceleration of loan payments.
The final step in a bankruptcy filing.
A proceeding to enforce a lien by forcing the sale or transfer of a secured property.
A proceeding to take equitable title to a property that was lined as security for a mortgage loan.
A property is secured by a mortgage that does not contain a "power of sale" clause. To foreclose, the lien holder will have to
file a deficiency suit.
file a foreclosure suit.
file a suit to quiet title.
obtain a quit claim deed.
A homeowner defaults on his mortgage loan. In the subsequent foreclosure action, the lender takes title to the liened property directly instead of initiating a court-ordered public sale. This is an example of
strict foreclosure.
judicial foreclosure.
non-judicial foreclosure.
deed in lieu of foreclosure.
A property owner gives Deanna permission to cross his property as a shortcut to her kindergarten school bus. One day the property owner dies. What right was Deanna granted originally, and will it survive the owner's death?
A personal casement in gross, which continues after the owner's death.
An easement by prescription, which continues after the owner's death.
A license, which continues after the owner's death.
A license, which terminates upon the owner's death.
On two adjacent properties, there is an easement that allows property A to use the driveway that belongs to property B. Here, property A is said to be which of the following in relation to property B?
Subservient estate.
Servient tenement.
Senior tenant.
Dominant tenement.
A property owner who is selling her land wants to control how it is used in the future. She might accomplish her aim by means of
an injunction.
a deed restriction.
an easement.
a land trust.
What distinguishes a lien from other types of encumbrance?
It involves a monetary claim against the value of a property.
It lowers the value of a property.
It is created voluntarily by the property owner.
It attaches to the property rather than to the owner of the property.
Which of the following defines actual notice?
It is notice published in a newspaper.
It is knowledge one could have or should have obtained.
It is notice explicitly stated in a legal document.
It is knowledge received or imparted through direct experience.
Which of the following defines constructive notice?
It is notice published in a newspaper.
It is knowledge one could have or should have obtained.
It is notice explicitly stated in a legal document.
It is knowledge received or imparted through direct experience.
Ownership of real estate can be transferred voluntarily or involuntarily. The three ways title can be transferred voluntarily are by
grant, deed, and will.
escheat, deed, and covenant.
title certificate, will, and deed.
sale contract, deed, and warrant of seizin.
What is the function of recording a deed?
It makes the deed valid.
It causes title to pass.
It gives constructive notice of ownership.
It removes all prior recorded encumbrances.
The only clause that is actually required in a deed is the
habendum clause.
granting clause.
reserving clause.
tenendum clause.
The type of deed that offers the grantee the fullest protection against claims to the title is the
general warranty deed.
special warranty deed.
quitclaim deed.
bargain and defend deed.
What is one of the purposes of a lawsuit to "quiet title"?
To force the grantor to defend the title against a third party claim.
To terminate a co-ownership estate when one co-owner is unwilling.
To keep the owner's name out of the title records.
To have an encumbrance removed if the lienholder cannot prove its validity.
Which of the following best describes the documentary stamp tax?
A transfer tax based on the price of the property being conveyed.
A tax a title company must pay in order to examine title records in the recorder's office.
A tax collected by attorneys and paid to the state when transfer documents are prepared.
A tax on stamps used to certify the authenticity of a conveyance.
The court proceeding that generally settles a decedent's estate is called
testate.
probate.
escheat.
distribution.
If an owner of real property dies intestate and has no legal heirs, what will happen to the property?
It will escheat to the state or county.
It will transfer to the decedent's executor.
It will be divided equally among adjoining property owners.
It will become a public easement.
A municipality wants to build a sewage treatment facility which will require the acquisition of several parcels of privately owned land. What legal power enables the municipality to buy the necessary properties, even against the owners' wishes?
Estoppel.
Escheat.
Alienation.
Eminent domain.
An adverse possessor must be able to successfully demonstrate that he or she has been
openly possessing and claiming the property without the owner's consent.
occupying the property without an occupancy permit.
using the property intermittently and without permission over a period of years.
building a permanent structure on the property.
A buyer has signed a contract to purchase a property, but is uncertain of the condition of the title. Which of the following parties is legally responsible for knowing the condition of the title?
The County Recorder.
The seller's agent.
The buyer.
The mortgage lender.
A break in the chain of title to a property results in
a clouded title.
a title plant.
a lien of indeterminate ownership.
a duplicate title.
Wayne and Leota obtain an insurance policy that protects them from liabilities and losses resulting from title defects. The kind of policy they bought is a
homeowner's insurance policy.
standard owner's title insurance policy.
lender's title insurance policy.
private mortgage insurance policy.
An owner transfers title to a property to a buyer in exchange for a motorcycle. This is an example of
voluntary alienation.
involuntary liquidation.
hypothecation.
1031 exchange.
A person wishes to convey any and all interests in a property to another without assurance of the property's marketability. This party would most likely use which of the following types of deed?
A sheriff's deed.
A special warranty deed.
A partition deed.
A quitclaim deed.
Jennifer owns a one-half interest in a condominium as a tenant in common with her business partner, If Jennifer has several heirs and dies without a will, the property will
pass to the heirs by the laws of descent and distribution.
escheat to the state.
pass to the surviving spouse based on homestead law.
pass to the surviving heirs according to the provisions of the will.
A drifter secretly lives in an abandoned shack on a large ranch property. After twenty years, the person makes a claim of ownership to the shack and the land immediately surrounding it that he had cleared. This claim will likely be
upheld through adverse possession.
upheld because of the length of possession.
declined through the doctrine of prior appropriation.
declined because possession was secretive.
To be marketable, title must be
insured.
free of undisclosed defects and encumbrances.
abstracted by an attorney.
guaranteed by a title certificate.
Which of the following types of leasehold estate lacks a specific term?
Estate for years.
Estate from period-to-period.
Estate at will.
Estate by the entireties.
A landlord generally has the right to enter the leased premises
at any time without notice.
for specified reasonable purposes.
provided the tenant gives prior permission.
only thirty days prior to lease expiration.
When a tenant rents an apartment, he or she is usually responsible for
compliance with the rules and regulations of the building.
payment for any alterations to the leased space.
recording the lease in title records.
occupying the premises throughout the lease term.
Under landlord-tenant laws, landlords must treat tenants fairly and honestly. In a residential leasehold, this requirement would include
insuring the tenant against loss of personal property.
providing required building support and services.
guaranteeing that a fair rent is being charged.
insuring the property for the value of the leasehold.
While a one-year lease is in effect, the tenant dies of a sudden illness. In this situation,
the lease automatically terminates.
the tenant's estate has the option of canceling the contract.
the landlord can record a lien against the leased fee interest.
the tenant's estate is still obligated under the lease.
Three studets rent a house together, and all three sign a one-year lease, Six months later. two students move out. Which of the following is true of the remaining rent obligation?
The remaining tenant is responsible for the full rent obligation.
The remaining tenant is responsible for one third of the rent obligation.
The lease is cancelled due to abandonment. Therefore, the rent obligation is extinguished.
The departing tenants have no further rent obligation.
A tenant transfers a portion of the leasehold interest to another party. The instrument that accomplishes this transfer is a(n)
deed.
novation.
sublease.
reconveyance
Vijay enters into a lease for his new store. The provisions of the lease require Vijay to pay the operating expenses of the premises such as janitorial and repair expenses. This is an example of a
gross lease.
percentage lease.
land lease.
net lease.
A tenant obtains a full-service lease where the landlord agrees to pay all operating expenses in exchange for an additional $5.00 rent per square foot. Another term for this lease is a(n)
gross lease.
proprietary lease.
exchange lease.
full service net lease.
Which of the following circumstances is the most likely scenario for a ground lease?
A developer wants to acquire a necessary parcel that separates two parcels she already owns.
An owner-developer wants to retain ownership of the land portion of the improved real property.
A fast food company wants to place a restaurant in an existing building without buying either
land or improvement.
A farmer wants to sell his property to a mining company.
A tenancy at will can usually be terminated by
either party giving proper notice.
either party without notice.
a sublease, with the lessor's approval.
an assignment by the lessor.
Under the Uniform Residential Landlord and Tenant Act, if a lease does not state a clear expiration date, the lease is regarded as
invalid.
a tenancy from period-to-period.
tenancy at will.
a tenancy for years.
The Uniform Residential Landlord and Tenant Act generally does not apply to
hotel.
a single-family residence.
a unit in an apartment building that has fewer than ten units.
a duplex in which the owner occupies one of the units.
In executing a condominium lease, a tenant has acquired
a temporary transfer of legal title.
a limited frechold interest in the air space of her unit.
a temporary possessory interest.
a title conveyance in exchange for rent.
When a tenant acquires a leasehold estate through a lease, what does the property owner acquire?
A freehold estate for years.
A reduced leasehold estate.
defeasible estate.
A leased fee estate.
When an owner leases her property, she temporarily relinquishes the right to
transfer the property.
encumber the property.
Occupy the property.
maintain the property.
Which of the following happens when a leased property is sold?
The buyer acquires title subject to the lease, which remains in effect.
The lease is cancelled.
The lease expires within thirty days unless renewed.
A new lease is automatically executed.
If a lease does not state a specific ending date, when does it terminate?
Immediately, since it is an invalid lease.
After one year.
When either party gives proper notice.
Whenever the property is sold.
In accordance with the statute of frauds,
leases in excess of one year must be recorded to be enforceable.
oral leases are not enforceable.
a five-year lease must be in writing to be enforceable.
an unwritten lease is fraudulent.
Which of the following is true of a sublease?
The subtenant takes over sole responsibility for performance of the original lease contract.
The original tenant retains primary responsibility for performance of the original lease contract.
It does not convey any of the leasehold interest.
It conveys the entire leasehold interest.
A homeowner goes bankrupt and the lender forecloses on her residence. In the foreclosure sale, the proceeds are insufficient to pay off the loan, and the court orders other property sold to cover the shortfall. This action is called a(n)
strict foreclosure.
suit for specific performance.
equity foreclosure judgment.
deficiency judgment.
To make a successful claim of adverse possession, the adverse possessor must satisfy which of the following criteria?
The possession must have been concealed, without permission, and for a statutory period of time.
The possession must have been unconcealed, for the necessary length of time, and without
permission.
The possession must be with intent, secretive, notorious and hostile
The possession must be open, without permission, for the statutory period of time, and within the
number of permitted intervals.
One of the primary benefits of recording conveyances is to give evidence to the public that the new owner actually owns the property. What is another benefit of recording to the homeowner?
Recording instruments establishes the title's marketability.
Recording the deed prevents any future clouds on title.
Recording prevents lienholders from illegal credit practices.
Recording the deed of conveyance nullifies any and all claims of adverse possession.
