Reference no: EM133311410

Question 1

A man signed an agreement to purchase real estate from a woman for $10,000. He put $250 down at the time of signing the contract but was bound to put up another $750 within 10 days, so as to equal a total of 10% down, as per the written contract terms. The ten days passed without the balance being deposited. The purchaser's broker told him that the title search revealed an ancient easement over the rear of the property allowing a farmer to take his sheep across the land. Nothing more was said about it. About 30 days after the date of the agreement, the seller gave written notice that she did not intend to perform the agreement and enclosed the check for $250 to the purchaser. The purchaser did not cash that check and put the remaining $750 in the escrow. He then sued for specific performance. Will the court enforce the agreement and compel the seller to sell under the contract?

A-Yes, because the seller breached the contract without reason and the buyer has a right to compel conveyance of the specific property.

B-Yes, because the buyer did not have to put the remaining down payment in the escrow account until the seller cleared title and the problem with the easement.

C-No, because the purchaser breached the agreement by not putting up the balance of the down payment in time, and he had no right to delay just because of rumors about the title search.

D-No, because the court will not compel a seller that has a cloud on title to sell to the purchaser without first showing proof that the title is cleared.

Question 2

A woman conveyed by deed her farm to her nephew, for the nephew's life. The nephew died prior to his aunt. The deed was silent on what happens on the nephew's death. The nephew's heirs tried to assert control and ownership of the property. The aunt sued them to assert her claimed superior interest in the property. Will the court return the property to the aunt?

A-No, because the nephew's fee simple interest passed to his heirs upon his death.

B-No, because the nephew's life estate was transferred to his heirs upon his death.

C-Yes, because the life estate terminated on the nephew's death and title reverted back to the aunt.

D-Yes, because the nephew's death prior to the aunt created a unexpected condition subsequent.

Question 3

A tenant moved into a single-family residence. She and the landlord signed a lease-purchase agreement, which applied $200 of each month's rent to the purchase price of $50,000. The tenant agreed to get a mortgage within 33 months and to pay the full balance due, less the payments credited, on the final settlement date, which was set for 90 days after the 33rd month. A default by the tenant caused a forfeiture of all credits and voided the agreement. The tenant made 31 consecutive payments, but stopped on month 32, when part of the roof caved in causing an uninhabitable situation in the dead of winter. She put the rental payments in an escrow account. The landlord sued for eviction and termination of the lease-purchase agreement. The tenant answered that the landlord had breached the warranty of habitability. She also counterclaimed to compel specific performance of the agreement because she was ready to tender the balance due and take full title to the property. Under the circumstances, what is the most likely ruling of the court?

A-The landlord breached the warranty of habitability, which released the tenant at least temporarily from further rent payments, but the purchase agreement was still valid and it would be enforced.

B-The landlord breached the warranty of habitability, which had the effect of voiding the lease-agreement and making the tenant's right unenforceable, so that closing could not be compelled.

C-The tenant breached the agreement by stopping the rent payments, which she had no right to do just because there was a repair that needed to be made, and closing would not be compelled.

D-The landlord must refund the $200 per month payments made toward the purchase; however, the agreement became void due to both parties nonperformance, and the closing would not be compelled.

Question 4

An owner conveyed residential real estate to a friend for life. The friend conveyed his interest in the same real estate to his brother. When the owner discovered the conveyance to the brother, he brought an eviction action against the brother. The brother refused to vacate the premises and appealed. What is the likely decision of the court regarding the requested eviction of the brother?

A-The court will rule that the brother has a right to live on the premises until the death of the owner.

B-The court will rule that the friend's original interest was extinguished when he conveyed his interest to his brother, and the brother can be evicted.

C-The court order immediate reversion of fee simple ownership back to owner and will immediately evict the brother.

D-The court will rule that the brother has a right to live on the premises until the death of his brother who conveyed the property to him.

Question 5

A seller conveyed a real estate parcel to a buyer through a quitclaim deed for $1.00. At the time, the seller was not the owner of the property. Later on, the seller became the owner in fee simple absolute by virtue of a gift of the property in the will of the now-deceased owner. The buyer demanded that the seller provide him with a warranty deed to reflect that the buyer's title as owner was absolute. Leaving aside whether the buyer could sue the seller for fraud, what is the nature of the buyer's interest in the property at the time that he demanded the warranty deed?

A-The buyer is an owner in fee simple absolute as of the date of the real owner's death.

B-The buyer owns nothing because the seller had nothing to convey in the original quitclaim deed.

C-The buyer owns an undivided one-half of the property with the seller as of the date of the real owner's death.

D-The buyer owns a life estate because that is all that the seller could convey by quitclaim deed.

Question 6

A married couple own a residential premises. They received a foreclosure action from the first mortgage lender in a state that has judicial foreclosure procedures. The state also statutorily extends the right of redemption both prior to the sale, and for a period of one year after the sale. The sale took place; the property was sold to the lender. The lender then filed a deficiency judgment action. The couple received a loan from family members about six months after the sale. It was sufficient to pay the balance on the mortgage plus interest and costs. The couple notified the lender and the court of their intent to exercise their right of redemption. What is the likely outcome?

A-The couple will exercise their right of redemption to retain ownership of their property.

B-The court will order the couple evicted because they should have acted prior to the entry of the deficiency judgment.

C-A hearing must first be held to determine whether abatement has occurred.

D-The court ruled that the lender did not have a right to file a deficiency judgment, and it ordered the foreclosure action null and void without the couple having to exercise the right of redemption.

Question 7

A man conveyed a large parcel of land to a friend. The deed stated that it was to "my friend as long as he uses the property to grow organic vegetables that are not genetically manipulated, and if that proper use is not maintained, the property will immediately revert to the grantor." 11 years later, the friend was charged with using genetic engineering techniques in violation of the regulations of the state's agricultural department. What kind of an interest, if any, did the grantor retain by the wording in the deed?

A-He retains a fee simple absolute.

B-He retains a possibility of reverter.

C-He retains a life estate.

D-He retains an estate for years.

Question 8

An owner leased land to a tenant who said that he was going to use the land for farming. The tract contained farmland and dozens of acres of pristine, scenic woodlands that were part of the view from the owner's adjoining residence. The owner noticed that the tenant was cutting down trees and selling them to companies who manufactured wood and paper products. After a while, 20 acres or so had been cut down and the activity was continuing, leaving a ravaged sight on the land. Does the landlord have a right to stop the activity and recover the value of the lost trees?

A-Under the doctrine of transfer of leasehold estate, the tenant may change the original use intended and perform any legal use that he wishes.

B-The landlord cannot interfere with lawful activities conducted by the tenant, and in this case the use of inactive trees that are mere woodlands cannot be prohibited.

C- This is ameliorative waste, which actually improves the value by having a profitable business on site; the tenant will not be held liable because he has improved the property..

D- This is voluntary waste to the property, which is prohibited by most leases; the tenant may be ordered to pay for the value of the waste, stop further activities, and is subject to being evicted

Question 9

Several landowners had residential premises in a development called "The Lakes." One owner's property contained a small improved beach area that could be used for swimming. That owner gave oral permission to several neighbors to use the beachfront for swimming, as a friendly neighborly gesture. That owner sold her property to a new owner. The new owner erected fences and signs saying, "keep out." The neighbors sued, claiming that they had an easement by implication through prior usage to use the beachfront. Will the court restore the use of the beachfront to the neighbors?

A-No, because the use granted was merely a license to go on a neighbor's land to go swimming, and the users of the free license did not expect that they were obtaining an interest in the land.

B-Yes, because the easement was created by the implied assent of the owner and her neighbors, and it became a public easement through prescription.

C-No, because land that abuts a lake or other body of water is not subject to the creation of an easement.

D-Yes, because the granting of a license to use one's property to perform a certain activity usually ripens into an easement if the use is regular and continual.

Question 10

Two parties entered into an agreement of sale for a residential property. The title insurance company called the seller's attorney to advise that one of the owners in the seller's prior chain of title over 40 years ago had neglected to get a first mortgage with a private lender satisfied. It was likely that the mortgage was paid but that someone neglected to file a satisfaction notice with the recorder. If the problem had been corrected back then there was no evidence of it on the record. As such, the open mortgage now constituted a cloud on title. The title company required that the seller take action to clear title before final closing could be approved. Which of the following is the most likely way for the seller to clear title so that conveyance can be made.

A-An action of adverse possession against the bank holding the open mortgage of record.

B-A quiet title action against the holder of the open mortgage, along with that party's heirs and assigns.

C-A lis pendens action to remove the mortgage from the record and declare title restored in the current owner and seller.

D-A warranty action against the current seller demanding that the seller take action to clear his title and to convey good title at the final closing.