KY Bar Property Law 3

Question 1

A developer records a declaration stating that all lots in a subdivision are restricted to single-family residential use. A later buyer with record notice opens a business on her lot. Neighbors sue. What is the neighbors' strongest theory?

Accepted Answer

Enforcement of an equitable servitude under a common scheme

Answer

A recorded common-scheme restriction binds purchasers with notice as an equitable servitude enforceable by injunction.

Question 2

A buyer signs a contract to purchase a house, and the house burns down before closing through no one's fault. Under the majority equitable conversion doctrine, who bears the risk of loss?

Accepted Answer

The buyer, because equitable title passed at contract signing

Answer

Under equitable conversion, the buyer holds equitable title from the moment of contracting and bears the risk of loss absent a contrary agreement.

Question 3

A mortgagor in Kentucky defaults, and the lender forecloses. The property sells for less than the debt. What must the lender obtain to recover the shortfall from the borrower personally?

Accepted Answer

A deficiency judgment

Answer

A deficiency judgment allows the lender to pursue the borrower personally for the unpaid balance after the foreclosure sale.

Question 4

A grantor hands a deed to a grantee saying, "This is yours when I die." The grantee records it immediately. The grantor continues living on and paying taxes on the land. On the grantor's death, heirs challenge the deed. What is the central legal issue?

Accepted Answer

Whether the grantor had present intent to deliver the deed

Answer

A deed is effective only upon delivery with present intent to pass an interest, and words postponing effect until death suggest no present intent.

Question 5

A neighbor's use of a gravel path across another's land was open, continuous, and without permission for the full prescriptive period, but the owner occasionally used the same path too. Does the neighbor acquire a prescriptive easement?

Accepted Answer

Yes, because exclusivity is not required for a prescriptive easement

Answer

Unlike adverse possession, a prescriptive easement does not require exclusive use, so shared use with the owner does not defeat the claim.

(KY Bar) Kentucky Bar Exam Practice Test

(KY Bar) Kentucky Bar Exam Practice Test

KY Bar Property Law 3