Real Estate Law & Transactions Flashcards
7 cards from real NALA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Real Estate Law & Transactions flashcards as text
What distinguishes a joint tenancy from a tenancy in common?
Answer: Joint tenancy includes the right of survivorship; tenancy in common does not
The defining feature of joint tenancy is the right of survivorship, meaning a deceased joint tenant's share passes automatically to the surviving joint tenants, bypassing probate.
A deed must be delivered and accepted to be effective. Which scenario best illustrates a valid delivery?
Answer: Grantor hands the signed deed to the grantee, who accepts it
Valid delivery requires the grantor to intend to transfer title presently and the grantee to accept; handing the deed directly to an accepting grantee satisfies both requirements.
Under RESPA, which fee is a lender permitted to charge before providing the Loan Estimate?
Answer: Credit report fee
RESPA/TRID rules prohibit collecting any fee before the consumer receives the Loan Estimate, with the sole exception of a bona fide and reasonable credit report fee.
What is the primary purpose of a subordination agreement in a real estate transaction?
Answer: To make a senior lien subordinate to a later-recorded lien
A subordination agreement is a contract in which a lienholder agrees to allow its lien to have lower priority than a subsequently recorded lien, often required when refinancing.
Which doctrine allows a buyer to rescind a real estate contract when the seller knew of a material defect and deliberately concealed it?
Answer: Active fraud or fraudulent concealment
While caveat emptor historically placed the risk on buyers, active fraud or fraudulent concealment of a known material defect by the seller gives the buyer grounds to rescind the contract.
In a mortgage foreclosure proceeding, what is the 'equity of redemption'?
Answer: The borrower's right to redeem the property by paying the full debt before the foreclosure sale is completed
Equity of redemption is the common-law right of the mortgagor to reclaim the property from foreclosure by paying the entire outstanding debt and costs before the sale is finalized.
A seller refuses to complete the sale of a unique parcel of land. Which remedy is MOST appropriate for the buyer?
Answer: Specific performance
Because every parcel of real property is considered legally unique, money damages are deemed inadequate and courts will grant specific performance to compel the seller to convey.