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ROCKWELL FUNDAMENTAL EXAM (2 VERSIONS)400
QUESTIONS AND WELL ELABORATED ANSWERS
LATEST UPDATE THIS YEAR
ROCKWELL FUNDAMENTAL EXAM 1
Which of the following would characterize a tenancy in common?
A- Only available to married persons
B- Requirement of equal interests
C- Right of survivorship
D- Tenants can will a partial interest in the property
D- Tenants can will a partial interest in the property
Unlike a joint tenant, a tenant in common can will her interest in the property to someone else.
There is no right of survivorship, and no requirement of equal interest in a tenancy in common.
K buys a piece of landlocked property from L on the condition that L provide an easement
across the property for ingress and egress. The easement isn't recorded, K later sells the
property. Is the easement still valid for the new owner?
A- No, because it wasn't recorded
B- No, because it wasn't mentioned in the deed
C- Yes, because an easement of this type runs with the land, rather than belonging to an
individual
D- Yes, because K is the servant tenant and L is the dominant tenant
C- Yes, because easement of this type runs with the land rather than the individual
Easements ordinarily need to be in writing and recorded in order to run with the land, but if the
use is apparent an easement can run with the land even if it is not recorded. In any case, the
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owner of the landlocked property is always entitled to an access easement, so C is the best
answer here.
A buyer makes an offer to purchase on May 2. The offer includes a promise to deposit $5000
in earnest money within two business days after metal acceptance. The offer is contingent on
a feasibility report. On may 5, the seller accepts the offer. On May 11 the soil report is
ordered. On May 17 the soil facility report comes back and is approved by the buyer. By what
date does the earnest money need to be deposited?
A- May 4
B- May 7
C- May 13
D- May 19
B- May 7
Self explanatory read question carefully.
A contract for deed wouldn't be a good idea if the seller's mortgage has a/an:
A- acceleration clause
B- alienation clause
C- defeasance clause
D- subordination clause
B- Alienation Clause
Aan alienation clause give the lender there gift to accelerate the loan if the borrower sells the
property, including by land contract. So, in general, a contract for deed on property subject to
an alienation clause would be ill-advised, because most sellers wouldn't have enough money to
pay off their mortgage...
A defeasance clause:
A defeasance clause is a mortgage provision indicating that the borrower will be given the title
to the property once all mortgage payment terms are met.
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A buyer is getting a loan to purchase a fie acre apple farm with no residence on it. The truth in
lending act requires:
A- a three-day recession period if the borrower changes her mind
B- disclosure of all settlement charges on a uniform settlement satement
C- disclosure of the finance charge
C- No disclosure, because the land is agricultural
D- No disclosure, because the land is agriculture.
TILA disclosure requirements do not apply for business, commercial, or agricultural loans.
Deborah sells her property to Juan, but Juan fails to record the deed. Which of the following
statements is true about unrecorded deeds?
A- The conveyance is invalid
B- The deed is still valid between D and J
C- The deed provides constructive notice that Juanis the owner
D- The property with the unrecorded deed will escheat to the country where it is located after
Juan dies
B- The deed is still valid between D and J
But does not provide constructive notice.
Sonya buys a parcel of land and pays taxes on it for five years. After she builds a home on it,
the taxes she'll pay are:
Ad Valorem taxes.
General real estate taxes are ad valorem taxes, the amount of tax owed is based on the value of
the property.
A buyer and seller sign a contract for deed. Two weeks later, the buyer is declared mentally
incompetent. The buyers guardian contracts the seller and says that he can continue to make
the buyers payments as agreed. Which of the following is true:
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The buyer can finish out the contract as the buyers guardian has proposed, because the person
was not incompetent when the contract was signed.
Once a contract for deed is signed by the parties, the buyer immediately receives:
Equitable title. When The buyer finishes paying off the contract purchase price then it becomes
legal title.
Sam takes possession of an unused farm and begins growing crops. He sends the farms owner
a litter describing his actions. Can Same ever become owner of the farm?
Yes. As long as he maintains possession.
Although, he may need to file a quiet title action to perfect title. The owner does not need to
know about the possession, but the possession must be obvious enough to put an average
owner on notice that her interest in the property is threatened. Sams letter satisfies that
requirement.
A landowner is negotiating the lease of his land to a developer who wants to build a mall
there. They should use a:
Ground lease. A ground lease is used when a tenant leases land and constructs a building on
that land. Later, retailers
John wants to rent a heated garage and is willing to pay a flat rate of $100 per month. Which
type of lease would this be?
Gross lease. A lease where the tenant pays a FIXED FLAT RENT and the landlord pays most or all
of the operating expenses is called a gross lease or a fixed lease.
A lease is most likely to be a net lease if a tenant is required to pay:
Property taxes. Net leases require the tenant to pay some or all of a property operating taxes,
insurance and maintenance. A net lease also requires a tenant to pay utilities. A gross lease, will
never require a tenant to pay property taxes.
ROCKWELL FUNDAMENTAL EXAM (2 VERSIONS)400
QUESTIONS AND WELL ELABORATED ANSWERS
LATEST UPDATE THIS YEAR
ROCKWELL FUNDAMENTAL EXAM 1
Which of the following would characterize a tenancy in common?
A- Only available to married persons
B- Requirement of equal interests
C- Right of survivorship
D- Tenants can will a partial interest in the property
D- Tenants can will a partial interest in the property
Unlike a joint tenant, a tenant in common can will her interest in the property to someone else.
There is no right of survivorship, and no requirement of equal interest in a tenancy in common.
K buys a piece of landlocked property from L on the condition that L provide an easement
across the property for ingress and egress. The easement isn't recorded, K later sells the
property. Is the easement still valid for the new owner?
A- No, because it wasn't recorded
B- No, because it wasn't mentioned in the deed
C- Yes, because an easement of this type runs with the land, rather than belonging to an
individual
D- Yes, because K is the servant tenant and L is the dominant tenant
C- Yes, because easement of this type runs with the land rather than the individual
Easements ordinarily need to be in writing and recorded in order to run with the land, but if the
use is apparent an easement can run with the land even if it is not recorded. In any case, the
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owner of the landlocked property is always entitled to an access easement, so C is the best
answer here.
A buyer makes an offer to purchase on May 2. The offer includes a promise to deposit $5000
in earnest money within two business days after metal acceptance. The offer is contingent on
a feasibility report. On may 5, the seller accepts the offer. On May 11 the soil report is
ordered. On May 17 the soil facility report comes back and is approved by the buyer. By what
date does the earnest money need to be deposited?
A- May 4
B- May 7
C- May 13
D- May 19
B- May 7
Self explanatory read question carefully.
A contract for deed wouldn't be a good idea if the seller's mortgage has a/an:
A- acceleration clause
B- alienation clause
C- defeasance clause
D- subordination clause
B- Alienation Clause
Aan alienation clause give the lender there gift to accelerate the loan if the borrower sells the
property, including by land contract. So, in general, a contract for deed on property subject to
an alienation clause would be ill-advised, because most sellers wouldn't have enough money to
pay off their mortgage...
A defeasance clause:
A defeasance clause is a mortgage provision indicating that the borrower will be given the title
to the property once all mortgage payment terms are met.
, Page 3 of 106
A buyer is getting a loan to purchase a fie acre apple farm with no residence on it. The truth in
lending act requires:
A- a three-day recession period if the borrower changes her mind
B- disclosure of all settlement charges on a uniform settlement satement
C- disclosure of the finance charge
C- No disclosure, because the land is agricultural
D- No disclosure, because the land is agriculture.
TILA disclosure requirements do not apply for business, commercial, or agricultural loans.
Deborah sells her property to Juan, but Juan fails to record the deed. Which of the following
statements is true about unrecorded deeds?
A- The conveyance is invalid
B- The deed is still valid between D and J
C- The deed provides constructive notice that Juanis the owner
D- The property with the unrecorded deed will escheat to the country where it is located after
Juan dies
B- The deed is still valid between D and J
But does not provide constructive notice.
Sonya buys a parcel of land and pays taxes on it for five years. After she builds a home on it,
the taxes she'll pay are:
Ad Valorem taxes.
General real estate taxes are ad valorem taxes, the amount of tax owed is based on the value of
the property.
A buyer and seller sign a contract for deed. Two weeks later, the buyer is declared mentally
incompetent. The buyers guardian contracts the seller and says that he can continue to make
the buyers payments as agreed. Which of the following is true:
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The buyer can finish out the contract as the buyers guardian has proposed, because the person
was not incompetent when the contract was signed.
Once a contract for deed is signed by the parties, the buyer immediately receives:
Equitable title. When The buyer finishes paying off the contract purchase price then it becomes
legal title.
Sam takes possession of an unused farm and begins growing crops. He sends the farms owner
a litter describing his actions. Can Same ever become owner of the farm?
Yes. As long as he maintains possession.
Although, he may need to file a quiet title action to perfect title. The owner does not need to
know about the possession, but the possession must be obvious enough to put an average
owner on notice that her interest in the property is threatened. Sams letter satisfies that
requirement.
A landowner is negotiating the lease of his land to a developer who wants to build a mall
there. They should use a:
Ground lease. A ground lease is used when a tenant leases land and constructs a building on
that land. Later, retailers
John wants to rent a heated garage and is willing to pay a flat rate of $100 per month. Which
type of lease would this be?
Gross lease. A lease where the tenant pays a FIXED FLAT RENT and the landlord pays most or all
of the operating expenses is called a gross lease or a fixed lease.
A lease is most likely to be a net lease if a tenant is required to pay:
Property taxes. Net leases require the tenant to pay some or all of a property operating taxes,
insurance and maintenance. A net lease also requires a tenant to pay utilities. A gross lease, will
never require a tenant to pay property taxes.
