MRP Real Estate Law & Regulations 3 — Questions and Answers
Question 1: A service member on active duty defaults on a lease after receiving PCS orders. Under the SCRA, how many days' written notice must they provide the landlord to terminate the lease?
- 15 days
- 30 days (Correct answer)
- 60 days
- 90 days
Correct answer: 30 days
The SCRA requires a service member to provide at least 30 days' written notice (along with a copy of PCS orders) to lawfully terminate a lease.
Question 2: Which legal doctrine holds that a buyer who has notice of an unrecorded encumbrance cannot claim bona fide purchaser protection?
- Doctrine of merger
- Doctrine of constructive notice (Correct answer)
- Doctrine of adverse possession
- Doctrine of laches
Correct answer: Doctrine of constructive notice
Constructive notice means buyers are presumed to know of publicly recorded documents and visible facts, preventing them from claiming ignorance of encumbrances.
Question 3: Under the Fair Housing Act, which of the following is NOT a protected class at the federal level?
- Religion
- Familial status
- Source of income (Correct answer)
- National origin
Correct answer: Source of income
Source of income is not a federally protected class under the FHA, though some states and localities have added it as a protected category.
Question 4: What is a 'mechanic's lien' and how can it affect a military home buyer?
- A lien placed by the VA on a property for unpaid appraisal fees
- A lien filed by contractors or suppliers for unpaid work on the property (Correct answer)
- A lien placed by the state for unpaid property taxes
- A lien filed by the seller for closing cost credits
Correct answer: A lien filed by contractors or suppliers for unpaid work on the property
A mechanic's lien is a claim against property filed by unpaid contractors or suppliers and can cloud title, delaying or preventing a clean purchase closing.
Question 5: Which federal agency enforces the Real Estate Settlement Procedures Act (RESPA)?
- Federal Trade Commission (FTC)
- Consumer Financial Protection Bureau (CFPB) (Correct answer)
- Department of Housing and Urban Development (HUD)
- Office of the Comptroller of the Currency (OCC)
Correct answer: Consumer Financial Protection Bureau (CFPB)
RESPA enforcement authority was transferred from HUD to the CFPB when the bureau was created under the Dodd-Frank Act in 2011.
Question 6: A couple purchasing a home together wants to ensure that if one spouse dies, the other automatically inherits the full property without going through probate. Which form of ownership should they choose?
- Tenancy in common
- Joint tenancy with right of survivorship
- Tenancy by the entirety (in applicable states)
- Either B or C (Correct answer)
Correct answer: Either B or C
Both joint tenancy with right of survivorship and tenancy by the entirety (available to married couples in some states) provide automatic survivorship rights outside of probate.
Question 7: What is the primary purpose of a title search in a real estate transaction?
- To determine the property's current market value
- To uncover liens, encumbrances, and ownership history that could affect title (Correct answer)
- To verify the structural condition of the property
- To confirm the property's zoning classification
Correct answer: To uncover liens, encumbrances, and ownership history that could affect title
A title search examines public records to reveal any claims, liens, judgments, or ownership gaps that could cloud or challenge the buyer's title.
MRP Real Estate Law & Regulations 3
A service member on active duty defaults on a lease after receiving PCS orders.
Under the SCRA, how many days' written notice must they provide the landlord to terminate the lease?