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Encumbrances

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

 1. 
Restrictive covenants:
a.
control property use.
c.
are not legal
b.
last forever.
d.
are part of zoning
 

 2. 
Restrictions:
a.
limit the future use of the land and improvements.
c.
are not allowed
b.
protect against zoning.
d.
are part of zoning
 

 3. 
Private land-use controls are enforced by:
a.
injunctions.
c.
the police
b.
lis pendens.
d.
zoning
 

 4. 
Unless there is prompt enforcement, a deed restriction may become unenforceable due to:
a.
laches.
c.
subordination
b.
novation.
d.
lack of interest
 

 5. 
Restrictive covenants:
a.
limit the property's future use.
c.
are not effective
b.
facilitate diverse property use.
d.
cannot be enforced
 

 6. 
Is it illegal for a seller to enforce the standard old restrictive covenant prohibiting occupancy by minorities?
a.
Yes because such restrictive covenants are not legally enforceable.
b.
No because the seller is obligated to enforce the restrictive covenants.
c.
No because they are old covenants
d.
It depends on the courts
 

 7. 
A fencing restrictive covenant has been violated for 9 years. A court will refuse to issue an injunction due to:
a.
laches.
c.
subordination
b.
assumption.
d.
age requirements
 

 8. 
Betty gave a parcel of property to her daughter. At the time of the transfer, Betty placed a restrictive covenant on the property. Can Betty later release the restrictive covenant?
a.
Yes
c.
It depends on how it was set up
b.
No
d.
Yes, but onlywith approval of neighbors
 

 9. 
Judgment liens are created by:
a.
agreements
c.
contracts
b.
special assessments.
d.
lawsuits.
 

 10. 
Which lien has priority?
a.
A two-year-old unrecorded tax lien
c.
A six-month-old recorded mechanic's lien
b.
A five-year-old mortgage
d.
A two-month-old judgment lien
 

 11. 
A lis pendens:
a.
is a lien upon the property.
c.
provides notice that a judgment lien may occur.
b.
a judgement
d.
a court order
 

 12. 
Judgment liens:
a.
have priority based on time
c.
are always last
b.
have first priority.
d.
may arise in either state or federal court.
 

 13. 
To determine whether a property is involved in litigation, it would be best to look for:
a.
a lis pendens.
c.
easements.
b.
deeds.
d.
special assessments.
 

 14. 
A contractor who has not been paid for work on a home may file a:
a.
a real estate lien
c.
a mortgage lien
b.
specific lien.
d.
general lien.
 

 15. 
Mechanics construction liens are normally filed:
a.
when the contractor begins work.
c.
after the work has been done.
b.
only after 90 days
d.
whenever they want
 

 16. 
The priority between liens may be changed by:
a.
an acceleration agreement
c.
a subordination agreement
b.
they cannot be changed
d.
a notary agreement
 

 17. 
The priority of various liens may be determined by:
a.
the amount owing on each lien.
c.
it depends on when the liens were agreed to
b.
the order of when the liens were recorded.
d.
the type of lien.
 

 18. 
Tax liens:
a.
are statutory liens which may lead to a tax foreclosure sale with an equitable right of redemption.
b.
a general lien which applies to all of the owner's property wherever located.
c.
sometimes a general lien and sometimes a specific lien
d.
are always last in line to be paid
 

 19. 
A judgment could cause a person to lose his:
a.
house only
c.
house, furniture and jewelry only
b.
house and furniture only
d.
house, furniture, jewelry and other property.
 

 20. 
Which has the highest priority?
a.
recorded 1st mortgages
c.
mechanics liens
b.
unrecorded tax liens
d.
recorded 2nd mortgages
 

 21. 
A mortgage:
a.
conveys title to the property to the mortgagee until paid off.
c.
remains as a lien of record until a certificate of discharge is recorded.
b.
is a general lien.
d.
has priority over taxes.
 

 22. 
To ensure that property will be available to pay a court award, a plaintiff will file a:
a.
writ of attachment.
c.
les pendens
b.
dedication.
d.
writ of habeus corpus
 

 23. 
The best protection from a mechanic's lien is provided by a contractor's:
a.
bond.
c.
homeowner's insurance policy.
b.
worker's compensation insurance policy.
d.
warranty deed.
 

 24. 
The lien with highest priority is the:
a.
property tax.
c.
mechanics lien
b.
first recorded mortgage.
d.
liens have no order of priority
 

 25. 
Which liens are voluntary?
a.
mortgages
b.
tax liens
 

 26. 
Two mortgages, three construction liens, and a tax lien encumber a parcel. The priority among the liens is determined by:
a.
the date of recording.
c.
the type of property involved.
b.
the amount owing on each lien.
d.
the type of lien.
 

 27. 
Lawsuits result in a:
a.
judgment lien.
c.
 les pendens
b.
mechanic's lien.
d.
a specific lien
 

 28. 
Which lien applies to both real and personal property?
a.
mechanic's liens
c.
specific liens
b.
judgment liens
d.
les pendens
 

 29. 
When sufficient property is sold to pay off a judgment lien, what is filed to clear the records?
a.
a satisfaction or release of judgment
c.
a receipt of payment
b.
a warranty deed
d.
nothing is filed
 

 30. 
Easements, liens and restrictive covenants are:
a.
encumbrances.
c.
always of record
b.
appurtenances.
d.
attachments
 

 31. 
Easements:
a.
run with the land even if the ownership changes.
c.
are never recorded
b.
terminate when the land is sold.
d.
are always recorded
 

 32. 
If one of the neighbors sharing a common driveway dies:
a.
this is an easement in gross and terminates.
b.
this is an appurtenant easement and the easement continues even if the ownership changes.
c.
the easement is renewable
d.
the easement is divided into two easements
 

 33. 
A recorded easement dated 1967 has never beer. used. The property has been resold. Does the easement still exist?
a.
Yes, because easements run with the land.
b.
No, because the old easement has not been used at least once each year.
c.
No, because easements are not part of real estate.
d.
No, because the property easement had to be recorded after 1970 to be valid.
 

 34. 
An appurtenance is a right which:
a.
transfers with the land.
c.
applies to all property.
b.
applies only to commercial property.
d.
does not transfer with the land.
 

 35. 
Which runs with the land?
a.
license
c.
permission to use another’s property
b.
easement
d.
season tickets to a football game
 

 36. 
Retaining a right to hunt ducks on a property is an example of (a) or an
a.
easement appurtenant.
c.
license
b.
easement in gross.
d.
personal property
 

 37. 
Which may be terminated at any time?
a.
license
c.
easement in gross
b.
easement
d.
easement appurtenant
 

 38. 
An easement appurtenant:
a.
runs with the land.
b.
benefits both the servient and dominant tenements (whatever those are).
c.
is actually a license
d.
is the same as an easement in gross
 

 39. 
When property containing an easement is sold:
a.
the easement runs with the land.
c.
the easement is automatically terminated
b.
either party may terminate the easement.
d.
divided into two easements
 

 40. 
An appurtenance:
a.
is a right which runs with the land.
c.
never runs with the land
b.
allows changes to the ownership.
d.
is not part of real estate
 

 41. 
A survey would assist a property owner in:
a.
determining whether there are any liens against the property.
b.
constructing driveways and foundations.
c.
determining the ownership of the property
d.
determining water rights
 

 42. 
An easement normally:
a.
allows one to use the land of another indefinitely even if ownership changes.
b.
terminates when the land is sold.
c.
gives a short term use of land to a neighbor
d.
never terminates under any conditions
 

 43. 
If more than one party claims sole ownership, the parties should file for:
a.
foreclosure.
c.
a general judgement
b.
quiet title.
d.
new deeds with the title company
 

 44. 
Which deed is used to clear clouds on the title?
a.
quitclaim deed
c.
general warranty deed
b.
warranty deed
d.
special deed
 

 45. 
What are the two ways to clear up a claim or cloud on the title?
a.
quitclaim deed and quiet title action
c.
a lawsuit or court order
b.
sale of the property and title insurance
d.
a new corrected deed and court order
 

 46. 
Can a trust deed be used to clear up a cloud on the title?
a.
Yes.
b.
No, because a trust deed is a type of mortgage and the trust deed further clouds the title.
c.
No, because a trust deed only deeds a portion of a property
d.
Yes, if a court orders it
 

 47. 
If title to property is not marketable:
a.
the property may be sold anyway.
c.
the property cannot be sold.
b.
sale of the property makes the title marketable.
d.
the property can be sold only with court approval
 

 48. 
A buyer would most likely conduct a quiet title action if:
a.
the property has previously undisclosed defects.
c.
if the court orders it
b.
a third party claims an interest in the property.
d.
a property has recently sold
 

 49. 
A seller signed a deed with her married name rather than using the maiden name by which she purchased the property.
a.
This clouds the title.
c.
This is okay
b.
This guarantees constructive notice.
d.
This guarantees actual notice
 

 50. 
If there is a cloud on the title and the owner cannot get a quitclaim deed, the owner should file suit for a:
a.
quiet title action.
c.
new deed
b.
foreclosure.
d.
les pendens
 

 51. 
An owner sells property without disclosing that a third party may have a legitimate claim to the property. Does the sale convey marketable title?
a.
Yes
b.
No, because reasonable doubt still exists as to the property's ownership.
c.
It depends on how important the claim is.
d.
Always
 

 52. 
A quitclaim deed:
a.
guarantees that title is marketable.
c.
is a valid deed for any real property
b.
may be used to clear up defects in the title.
d.
should be used to transfer real property
 



 
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