Property I MCQ

Which of the following are needed to satisfy the physical requirement for adverse possession?

D. All of the above

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.

Which of the following constitute entering under “color of title?”

B. Entering under a mistaken believe in the validity of a deed to property.

For a land sale contract, which of the following must be included in a writing sufficient to satisfy the statute of frauds?

D. All of the above

Seller contracts to sell Blackacre to Buyer for $250,000. Buyer refuses to proceed with the purchase, and Seller sues Buyer. At trial, Seller establishes that the fair market value of Blackacre is $235,000. To what damages, if any, is Seller entitled?

A. $15,000

Seller contracts to sell Blackacre to Buyer for $250,000. Seller refuses to proceed with the purchase, and Buyer sues Seller. At trial, Buyer establishes that the fair market value of Blackacre is $235,000. To what damages, if any is Buyer entitled?

D) None of the above

Which of the following remedies may be awarded when a seller fails to deliver marketable title?

D.) All of the above

Which of the following statements regarding marketable title is correct?

C.) A seller must possess marketable title on the day the deal is to close.

On September 20, Sam agreed in a written contract to sell Blackacre, a parcel of mountain property bordered by a river, to Bella for $500,000. The contract provided that the transaction was to close on December 20. Blackacre was improved with a single story residence. On December 1, after 3 weeks of heavy rain, the river flooded, severely damaging the residence. When Bella learned of the damage to the residence, she refused to proceed with the sale transaction. Sam sought specific performance. If Bella prevails in this action, it will be because:

B.) Sam remained in possession of the resort.

Which of the following covenants does not run with the land?

A.) Covenant of seisin

Which of the following statements regarding breach of a covenant of title is correct?

D.) A plaintiff is entitled to recover either damages or specific performance for a breach of the covenant of further assurances only.

How much may a plaintiff recover in damages for breach of a covenant of title?

A.) No more than the price the defendant received for the land that was sold.

What does the implied warranty of fitness constitute?

A.) An implied promise by the seller that the property sold is free of dangerous conditions.

The right of redemption:

A. cannot be waived by the mortgagor in consideration for the granting of a loan

Which of the following is a correct statement regarding the time for performance of a land sale contract?

D. All of the above

Under the Uniform Land Transactions Act, when will a land sale contract 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.

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

Which of the following statements regarding a private sale foreclosure is correct?

D. all of the above

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:

D. Lose, because Oscar was insane during the period 1955 to 1965.

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.

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?

D. The contact is enforced because the zoning regulation is not a title defect that makes Robert's title unmarketable.

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.

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.

Questions 6 and 7 are based on the same fact pattern. 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?

D. The doctrine of equitable conversion regards the purchaser as an owner.

Questions 6 and 7 are based on the same fact pattern: 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?

D. Purch is not required to purchase Cellacre, and is entitled to the return of her $5,000 deposit.

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:

B. Required Sally to convey marketable title

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:

D. Not prevail, because Paul was late in tendering his performance under the contract.

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:

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.

Which of the following is not a required inclusion in a valid deed?

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?

B. The deed is void until a name is inserted.

What is the legal effect of a forged deed?

A. Deed is void

Which of the following terms is used to describe a sudden change to the bed of a stream?

A. Avulsion

Which of the following is a requirement of a valid deed?

B. Signature of the grantor.

How do the majority of jurisdictions treat a “death escrow”?

C. A “death escrow” will be upheld utilizing a legal fiction of present delivery.

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.

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?

C. A race-notice statute

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?

B. A race statute

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

Which of the following grantees will be considered to have paid value for the acquired property?

D. All of the above

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:

C. Mort can establish that Tom promised Olex in a separate document that he would pay off the mortgage.

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:

D. Ben, under the doctrine of constructive adverse possession.

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:

C. Ben, but only for the 80 acres of Blackacre he actually possessed.

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?

D. No, because Larry was not a bona fide purchaser for value.

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:

D. Mich'l never effectively accepted delivery of the deed.

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?

C. Camma, because she was a subsequent bona fide purchaser without notice, and Alpha had not recorded at the time Camma purchased.

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?

B. Alpha, because Beta purchased with notice of Alpha's deed.

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.

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?

B. “I am giving Blackacre to Dee. Give him this deed when I die."

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:

C. Sam, if he conveyed title to Betty via a quitclaim deed.

Which of the following statements is true?

B. If easement rights are not expressly included with the granting of a profit, they are generally always impliedly included.

Which of the following statements regarding an easement by necessity is true?

C. The necessity in question must be in existence at the time the ownership of the dominant and servient estate is severed.

Which of the following statements regarding an easement in gross is true?

D. All of the above

Which of the following statements regarding a covenant is correct?

A. Covenants must be created in a writing that satisfies the Statute of Frauds.