CPL Land Acquisition & Title Examination 3 — Questions and Answers
Question 1: In a 'race-notice' recording jurisdiction, a subsequent purchaser is protected only if they:
- Record first regardless of notice
- Pay adequate consideration and have no notice of prior unrecorded conveyances, and record first (Correct answer)
- Have actual notice but record before the prior grantee
- Take possession before the prior grantee records
Correct answer: Pay adequate consideration and have no notice of prior unrecorded conveyances, and record first
In a race-notice jurisdiction, a subsequent purchaser must both record first AND be a bona fide purchaser without notice of prior unrecorded interests to be protected.
Question 2: What does a 'special warranty deed' warrant against?
- All title defects from any source
- Only defects arising during the grantor's ownership (Correct answer)
- Defects from the original government patent
- Nothing — it provides no warranties
Correct answer: Only defects arising during the grantor's ownership
A special warranty deed warrants title only against defects arising during the grantor's period of ownership, not against defects that pre-date the grantor's acquisition.
Question 3: A 'curative instrument' in land title work is used to:
- Establish new mineral rights
- Correct or eliminate a title defect (Correct answer)
- Transfer all rights to a trustee
- Record an unrecorded lease
Correct answer: Correct or eliminate a title defect
A curative instrument is a document (such as a corrective deed, ratification, or affidavit) used to fix or remove a defect in the chain of title.
Question 4: Which federal law governs the leasing of minerals on federal onshore lands?
- The Mineral Leasing Act of 1920 (Correct answer)
- The Federal Land Policy and Management Act
- The Mining Law of 1872
- The National Environmental Policy Act
Correct answer: The Mineral Leasing Act of 1920
The Mineral Leasing Act of 1920 governs the leasing of oil, gas, and other energy minerals on federal onshore lands managed by the Bureau of Land Management.
Question 5: What is the doctrine of 'after-acquired title' (estoppel by deed)?
- A grantor cannot convey more than they own
- If a grantor conveys land they don't own and later acquires title, that title passes automatically to the grantee (Correct answer)
- A grantee must record within 30 days to claim after-acquired title
- Title acquired after a lease expires reverts to the lessor
Correct answer: If a grantor conveys land they don't own and later acquires title, that title passes automatically to the grantee
Under the doctrine of after-acquired title (estoppel by deed), if a grantor conveys property they don't yet own but later acquires it, the title automatically passes to the grantee.
Question 6: In title examination, what is the significance of a 'lis pendens'?
- It terminates an existing lease
- It provides constructive notice of pending litigation affecting the property (Correct answer)
- It establishes a new lien on the property
- It releases a prior mortgage
Correct answer: It provides constructive notice of pending litigation affecting the property
A lis pendens is a recorded notice of pending litigation that provides constructive notice to subsequent purchasers and encumbrancers that the property is subject to an ongoing court action.
Question 7: What is an 'option to purchase' in the context of land acquisition?
- An irrevocable right to buy property at a fixed price within a set period (Correct answer)
- A recorded lien against the property
- A form of title insurance
- A lease with purchase rights attached
Correct answer: An irrevocable right to buy property at a fixed price within a set period
An option to purchase is a contract giving the holder the exclusive, irrevocable right to buy property at a specified price within a defined period, which the holder may exercise or let expire.
CPL Land Acquisition & Title Examination 3
In a 'race-notice' recording jurisdiction, a subsequent purchaser is protected only if they: