Chapter 50_SmithandRoberson14ed_tb

Chapter 50_SmithandRoberson14ed_tb - Chapter 50Transfer and...

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Chapter 50—Transfer and Control of Real Property TRUE/FALSE 1. General contract law provisions govern the sale of real property. ANS: T PTS: 1 2. If there is a defect in title, the courts will not allow the buyer to refuse to go through with the purchase. ANS: F PTS: 1 3. A warranty deed by Arthur to Bob includes Arthur's promise that he will be liable to Bob for any de- fects in title. ANS: T PTS: 1 4. A special warranty deed will give the buyer better rights against the grantor (seller) than a general war- ranty deed. ANS: F PTS: 1 5. To be effective, a deed need not be conveyed for consideration. ANS: T PTS: 1 6. When the power of eminent domain is exercised, the owners must be given the fair market value of the property as of the time of the taking. ANS: T PTS: 1 7. A deed is not effective to transfer title to land until delivery. ANS: T PTS: 1 8. Giving a deed to an escrow agent may be sufficient delivery of a deed. ANS: T PTS: 1 9. A majority of jurisdictions follow the common law rule that the risk of loss or destruction of real prop- erty rests with the seller until the deed is conveyed to the purchaser. ANS: F PTS: 1 10. The UCC applies to real estate mortgages and trust deeds since they are security interests. ANS: F PTS: 1 11. Murphy and her child, who are both Caucasian, are seeking an apartment. Murphy is not married and never has been. Grant owns an apartment complex with 8 units ready to rent. Grant will not be violat- ing any laws by his refusal to rent to Murphy and her child on the basis that Murphy is a single, unwed mother.
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ANS: F PTS: 1 12. Most states have adopted the theory that a mortgage is a lien on real property for the payment of a debt. ANS: T PTS: 1 13. A minority of states have adopted the common law lien theory of mortgages which gives the mort- gagor the right of ownership and possession. ANS: F PTS: 1 14. A deed of trust differs from a mortgage in that the former conditionally conveys the property to a trust- ee for the creditor's benefit. ANS: T PTS: 1 15. If Connie buys the real estate subject to an existing mortgage, she will have to pay the mortgage if the mortgagor does not. ANS: F PTS: 1 16. Foreclosure is the mortgagee's right to sell the property to satisfy the debt. ANS: T PTS: 1 17. Foreclosure may be exercised only by sale under judicial decree. ANS: F PTS: 1 18. If Bob's mortgage debt is greater than the amount for which his farm is sold in a foreclosure action, he is excused from payment of the remainder. ANS: F PTS: 1 19. The validity of zoning is based on the police power reserved to the states. ANS: T PTS: 1 20. Eminent domain does not grant the government power to take private land for public use. ANS: F PTS: 1 21. A restrictive covenant can bind only the original parties to it.
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Chapter 50_SmithandRoberson14ed_tb - Chapter 50Transfer and...

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