ALP ALP Real Estate & Property Law 2

Question 1

What is the purpose of a 'title search' in a real estate transaction?

Accepted Answer

To examine public records and verify clear ownership and identify any encumbrances

Answer

To assess the physical condition and structural integrity of the property

Answer

To determine the property's current assessed value for tax purposes

Answer

To calculate the applicable mortgage interest rate

Question 2

A 'lis pendens' recorded against real property gives notice that:

Accepted Answer

There is pending litigation involving the property

Answer

A foreclosure sale has already been completed

Answer

A federal tax lien has been assessed by the IRS

Answer

A boundary dispute has been resolved by the courts

Question 3

In a 'joint tenancy' ownership arrangement, what occurs when one co-owner dies?

Accepted Answer

The surviving co-owner(s) automatically receive the deceased's share by right of survivorship

Answer

The deceased co-owner's heirs inherit their proportionate share

Answer

The property reverts to the state under the doctrine of escheat

Answer

The property must be sold and proceeds distributed among all claimants

Question 4

What is 'adverse possession' in U.S. property law?

Accepted Answer

Acquiring legal title to land by openly and continuously occupying it for a statutory period

Answer

Forcibly removing a trespasser from one's property through legal proceedings

Answer

A government taking of private property without just compensation

Answer

A hostile mortgage foreclosure initiated by the lender

Question 5

In real estate financing, a 'mortgage' is best described as:

Accepted Answer

A security interest in real property given to a lender to secure repayment of a loan

Answer

An outright sale of the property to the lending institution

Answer

A lease agreement between the borrower and the bank

Answer

A type of property casualty insurance policy

Question 6

What is 'escrow' in the context of a real estate closing?

Accepted Answer

A neutral third party holding funds and documents until all closing conditions are satisfied

Answer

A type of annual property tax installment payment arrangement

Answer

A third-party home inspection and appraisal service

Answer

A government recording fee charged at deed recordation