Land Acquisition & Title Examination Flashcards
7 cards from real CPL practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Land Acquisition & Title Examination flashcards as text
What is the purpose of a 'ratification of lease' in oil and gas title work?
Answer: To confirm and validate a lease executed by a party whose authority was questionable
A ratification of lease is used to confirm and give retroactive validity to a lease where the original execution may have been defective, such as when signed by a party with unclear authority.
Under the rule against perpetuities, a future interest in property must vest, if at all:
Answer: Within a life in being plus 21 years
The traditional rule against perpetuities requires that a future interest must vest, if at all, within a life in being at the creation of the interest plus 21 years.
A 'non-participating royalty interest' (NPRI) differs from a 'participating royalty interest' in that the NPRI owner:
Answer: Receives royalty from production but has no right to execute leases or receive bonus/delay rentals
A non-participating royalty interest owner receives a share of production royalties but has no right to execute leases, receive bonus payments, or participate in lease negotiations.
What is a 'correction deed' used for in land title practice?
Answer: To fix errors or omissions in a previously recorded deed
A correction deed (also called a deed of correction or corrective deed) is used to amend a previously recorded deed to fix errors such as misspelled names, incorrect legal descriptions, or omitted signatures.
In evaluating surface ownership for a land acquisition, a landman discovers the surface is held by tenants in common. What does this mean for leasing?
Answer: All co-tenants must sign the lease for it to cover the entire surface interest
When property is held by tenants in common, each co-tenant owns an undivided fractional interest and all co-tenants must sign to convey or lease the entire property, since no single co-tenant can bind the others.
What is the significance of a 'habendum clause' in an oil and gas lease?
Answer: It defines the duration of the lease, including primary and secondary terms
The habendum clause ('to have and to hold') in an oil and gas lease defines the term of the lease — specifying the primary term (fixed period) and the secondary term (held by production).
When a title examiner finds that a prior deed contains an ambiguous legal description, which rule of construction applies first?
Answer: Natural monuments control over artificial monuments, which control over courses and distances, which control over acreage calls
Courts apply a hierarchy when resolving ambiguous legal descriptions: natural monuments (rivers, trees) > artificial monuments (stakes, fences) > courses and distances > acreage calls.