Real Estate Exam #1 25 Questions 100 points 4 points each 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

6. 17. 18. 19. 20. False True D A D B False C 900,000 302,500,000/2 = 151,250,00 B D True Notice of revocation True A B A D C 21. 22. 23. 24. 25. D D A True True

Name: Chris Howell

1.

Surface and subsurface rights cannot be separated. True or False

2. The rights that accompany a fee simple absolute include the right to use the land for whatever legal purpose the owner see fit. True or False 3. Cattle Corporation (CC) sells half of its land to the Double R Ranch. On the land is a reservoir. In the deed, CC retains the right to remove a limited amount of water per day from the reservoir. This right is a. b. c. d. a leasehold estate. a license. an easement. a profit.

4. To acquire the ownership of a lake cabin by adverse possession in Oklahoma, Cody must occupy the cabin exclusively, continuously, and peaceably for a specified period of time a. b. c. d. 5. a. b. c. d. in an, open, hostile, and adverse manner. until the owner files a suit. without the owners knowledge. with the states knowledge. A&B Storage, Inc., signs a six-month lease to occupy a warehouse. This is a periodic tenancy. a tenancy at sufferance. a tenancy at will. a tenancy for years.

6. Mia leases from National Theater Corporation (NTC) a theater in which to stage a series of concerts. What distinguishes Mias interest in the theater from NTCs interest? a. b. c. d. the exclusivity of possession the quiet enjoyment of rights. the temporary nature of possession. the title to the property.

7-8. Joe purchased a vacation house (with 100 acres of forest) with his wife, Laura, as joint tenants. Joe and Laura later divorce. As part of the divorce agreement, Joe and Laura remain on the title, but Laura is not permitted to use the property unless Joe agrees to it. Joe remarries, and in his will leaves the title of the property to his new wife Cathy, but allows his ex-wife Laura possession until her death. He dies two months later. 7. The property will pass to Cathy via the will. True or False 8. a. b. c. d. The title relationship that exists between Joe and Laura after the divorce is called tenants in common joint tenants with right of survivorship tenancy by the entirety Life Estate.

9-10. Jack marries Julia in Texas where they live. He and Julia own a $1.2 million house of which Jack personally paid all of it. They are happily married for five years, and have amassed a total net worth of $2.5 million. Jacks dad dies and leaves him $300 million. Julia, who was really in love with Jacks money, files for divorce. The house is now worth $1.8 million. 9. How much will Julia receive from the divorce concerning the house? $_______________. 10. How much will Julia receive from the entire estate she possessed with Jack? $_______________. 11. Tulsa Developers, Inc., pays Oklahoma Trust Company to release its claim to a strip of waterfront property. OTC gives TD a deed that conveys only whatever interest OTC has in the strip. This deed is a. b. c. d. a grant deed. a quitclaim deed. a special warranty deed. a warranty deed.

12. Which covenant/warranty requires that the seller come to the legal aid the buyer if somebody sues the buyer on a property title suit? a. b. c. d. covenant of seizin covenant of quiet enjoyment covenant of further assurance warranty forever.

13. It is possible for a document to convey fee title to land even though it does not contain the word deed. True or False 14-15. John buys a house and promptly records the deed at the public recorders office. One year later, Sophia, who believes she owns the house (since she lived there for the past twenty years), returns from a world-wide trip and discovers that John is living in the house. After telling John that she is suing him for theft of her property, she runs over to the recorders office and discovers that John has filed a deed (and that it has been accepted by the recorder). 14. What type(s) of notice does Sophia possess?

15. John, as the recorded title holder, is presumed to be the true owner and will most likely win the lawsuit. True or False 16. The __________ lists all of the legal actions that have been performed (or used) with a piece of property. This is used to determine whether or not there is any kind of claim against a property. a. b. c. d. 17. a. b. c. d. 18. a. b. c. d. abstract of title chain of title certificate of title opinion of title The right to demand that title be conveyed upon payment of the purchase price is called warranty of title. equitable title. contractual title. specific title. Scott and Tiffany enter into an implied contract. The parties conduct defines the contracts terms. finds the contracts facts. terminates any unintended consequences. undercuts any terms based on the facts.

19. Employment Sources, Inc., enters into a contract with Fred. If Fred is a minor, this contract is most likely a. b. c. d. valid. unenforceable. void. voidable.

20. Amber offers to buy a farm from Chevy for $350,000. Chevy, says, OK, but I get a lifetime right to fish out of the pond. Chevy has a. b. c. d. accepted the offer. made a counteroffer without rejecting the offer. rejected the offer and made a counteroffer. rejected the offer without making a counteroffer.

21. Alan promises to pay Charlie $12,000 in annual rent in order to occupy Charlies beach house. Charlie agrees to Alans terms. The act of Charlies agreement and promise a. b. c. d. imposes a moral obligation on Alan to pay Charlie. imposes no obligation on Alan unless he is satisfied with the beach house. is not sufficient consideration because it is not goods or money. is the consideration that creates Alans obligation to pay Charlie.

22. Dill, a salesperson for Excel Autos, promises Fern that a certain car will give her a smooth ride. Dill offers a test drive, which Fern declines. She buys the car but soon realizes that its suspension is in poor condition. Fern a. b. c. d. can rescind the contract on the ground of fraud. can rescind the contract on the ground of misrepresentation. can rescind the contract on the ground of mistake. was not defrauded.

23. Dale files a suit against Eva, alleging her fraud in entering into a contract with him. Proof of an injury is required a. b. c. d. to recover damages. to rescind the contract. to undo Eves influence. under no circumstances.

24-25. John offers his home for sale for $300,000 to the general public. After an open house, Ian approaches John and tells him he would like to buy the house, but would need five days to get the financing to purchase the house. However, Ian tells John that he wont start the process unless John agrees not to sell the house during those five days. John agrees, in writing, and Ian starts the process of obtaining financing. Three days after this agreement, Michael approaches John and offers to buy the home for the stated price. The two agree and each side closes on the house in record time (1 day). Ian comes to John on the fifth day to show him the banks award letter that they will finance Ian for $300,000. He soon discovers that John did not live up to the agreement. 24. If Ian sues John for breach of contract, Ian will win in court. True or False. 25. Assume Michael is unable to secure the $300,000 financing needed to purchase the house, under most jurisdictions, if this were the case, Michael has not breached the contract even though he was unable to perform what he promised to do. True or False