WorksheetsReal Property 2 Quiz5
Total questions: 27
Worksheet time: 29mins
What is equitable conversion based on?
Equity principles
Legal principles
Financial principles
Social principles
Who holds legal title after a contract is signed but before the deed is delivered?
Seller
Buyer
Both parties
Real estate agent
What does equitable conversion under an executory contract of sale immediately pass to the purchaser in Alabama?
Legal title
Equitable estate
Possession rights
Mortgage interest
The overwhelming majority of jurisdictions apply the doctrine of equitable
conversion, and find that the buyer must buy the property and is entitled to
the condemnation award.
True
False
During the “gap” period, the seller’s or buyer’s need for the property may
change or the market value of the property may change. Usually, neither a
change in the market value nor a change in the buyer’s or seller’s needs will
excuse them from performing the sales contract.
One generally recognized exception to the doctrine of equitable conversion is
that where the seller’s title is defective at the time of loss, the (a) will bear
the loss.
What is true if a seller or buyer dies before closing. Choose all that apply.
If the seller dies, the “bare” legal title passes to the takers of his real property,
Under CL, the devisees of the personal property have to pay for the real property even if they don’t get
the personal property.
Under the Modern Trend, by statute, eliminated the doctrine of exoneration so the devisees
receiving the real property have to pay for the real property which is the subject of the contract.
(a) which means you pay off the mortgage before they foreclose
(b) (in AL) means you can pay off the mortgage after they foreclose
If the property is redeemable (can be recovered) the owner has for AL:
(c) if the property is residential and
(d) if it is commercial
Right of redemption is a legal process that allows a delinquent mortgage borrower to reclaim their home or other property subject to foreclosure if they are able to repay their obligations in time.
You can sell your right of redemption
True
False
If the mortgage is sold the assignment is not recorded at the courthouse, it is recorded in (a)
At one point because there were so many foreclosures the banks lost the (b) to the mortgages
Under (c) if the bank does not have both the note and the mortgage they could not foreclose
The (d) now is the note and the mortgage can be in different places and the bank can have a foreclosure
The holder of legal title to a mortgage can foreclose its mortgage regardless of whether it also holds the promissory note associated with the mortgage.
True
False
If a mortgagor defaults, the mortgagee and holder of the promissory note may sue for a personal judgment on the note or, relying on the security of the mortgage, may sell the property and apply the proceeds for the sale to payment of the debt.
True
False
________(page 1152) = occur when a property owner (this could be a landlord, bank, or other lending institution) files with the courts to regain possession of a property. Almost every major city has a this court just for housing issues (eviction, rent disputes, late payments); it is a district court in major metro areas that handle only housing issues.
Housing Court
Probate Court
Circuit Court
If an entity/person cannot foreclose what options do they have:
Accelerate the debt
Sue for the amount owed on the mortgage
Get a judgment
Record my judgment in the local court
Evict the person in the home
A ________ is a deed in which the seller of a piece of property only warrants against problems or encumbrances in the property title that occurred during his ownership.
special warranty deed
general warranty deed
implied warranty deed
fixed warranty deed
What is true a special warranty deeds. Choose all that apply.
guarantees two things: The grantor owns, and can sell, the property; and the property incurred no encumbrances during his ownership.
more limited than the more common general warranty
most commonly used with commercial property transactions
can only sue the person who sold the property to the buyer
A______ provides the transfer of ownership or title to commercial or residential real estate property and comes with certain guarantees made by the seller. These guarantees include that the property title is being transferred free-and-clear of ownership claims, outstanding liens or mortgages, or other encumbrances by individuals or entities other than the seller.
general warranty deed
special warranty deed
implied warranty deed
fixed warranty deed
What is true about general warranty deeds. Choose all that apply.
covers the property's entire history and guarantees that the property is free and clear from defects or encumbrances
assures the buyer they are obtaining full ownership rights without valid potential legal issues with the title
buyer can sue everyone who owned the property
Today when property is purchased, title insurance is purchased also.
→title insurance replaces the covenants except for commercial property where the title insurance went broke or can’t be found
True
False
(a) - a covenant that the grantor is peaceably in possession under a freehold title (see example on age 1170)
(b) - the grantor has the power and the authority to sell the property
(c) - no other right or interest in the property conveyed which decreases the value of the property but is consistent with the passing of a fee, is held by any 3rd party like an easement (Example on page 1171)
(d) - the purchaser will not be thrown off the land or evicted by someone with an with paramount title (actually or constructively)
(e) - the court treats this as identical to Covenant of Quiet Enjoyment. The grantor promises to compensate the grantee in the event he is evicted.
(a) - the grantor will supply further assurances in the form of papers and docs that the grantee may need in the future to prove her title. This covenant can be specifically enforced (specific performanc), the other covenants are enforced only by an award of money damages.
_________ states the property is transferred without restrictions. This means the new owner has absolute ownership of the property upon satisfying their conditions (usually payment in full) and has the right to sell or bequeath the property to an heir and so on.
→to have and to hold clause
Habendum Clause
Due On Sale Clause
Acceleration Clause
Even if covenants of title are not set forth in the deed they still exist
True
False
(a) (page 1195)- the title company will list the property by legal description or street address or both. And under that they will list all mortgages, easements, releases, judgments, etc. So when you need to find a property instead of going to the courthouse they can find properties faster and more efficient.
(b) page 1196 found at the courthouse; you look at the deed and work your way back starting with the last buyer (goes back 60 years)
(c) page 1196 found at the courthouse; you look at the deeds and work your way forward starting with the first buyer (goes back 60 years)
common law of property under which a grantee who has received an interest in property from a bona fide purchaser will also be protected as a bona fide purchaser, even if the grantee would not legally qualify for this status.
Shelter Doctrine
Torrens System
Race Statute
Notice Statute
a government-sponsored insurance policy to resolve title disputes rather than the private title insurance required for the sale of real property today. These property owners are guaranteed that no other parties have a claim to their property
Shelter Doctrine
Torrens System
Race Statute
Notice Statute
Jefferson County has a right of way over the property.The county does not record the right of way for 7 years and transactions happen during those 7 years w/o the right of way being recorded. Mosley had bare notice b/c he thought there was 1 right a way but there were 2 that could have been seen if the prop was inspected. Will Jefferson County win?
Yes
No
If all leases over 3yrs must be recorded so the new buyer/landlord will know about the existing leases. Would a new landlord-buyer be negligent for not checking the courthouse records.
Yes
No
An option is a valid property right.
True
False
(a) a deed that shows up that makes no sense
Title Insurance Companies use (a) (an arrangement whereby an insurer transfers all or part of a risk to another insurer to provide protection against the risk of the first insurance)
(b) on title insurance are add ons; they can alter the policy to deal with recurring special situations
(c) this includes the owner, lender, sales price, legal description, taxes, and a list of the easements & judgments pertaining to the property.
It is on the buyer to make sure the title is cleaned up prior to purchasing the property
True
False
What defects would render a marketable title unmarketable? Choose all that apply.
chain of title defects
recorded encumbrances
unrecorded encumbrances
mutual mistake
frustration of purpose
