Real Property MBE Practice Test 2017

Question 1

An owner signed papers and a deed to sell a piece of property to buyer one, who held his deed and did not record it. The next month the original owner sold the same property to a second buyer. Buyer two had information that buyer one had bought the property, but he knew that buyer one had not yet recorded a deed. Buyer two recorded five days later. The next day after the deed was executed and delivered to the second buyer, the original owner conveyed a deed to the same property to a third buyer, who was a good faith purchaser for value and who recorded his deed the very same day. Which buyer has superior title under a race-notice recording statute?

Accepted Answer

Buyer three has better title because he had no notice of any prior transactions and recorded first.

Answer

Under a race-notice recording statute, a subsequent purchaser for value takes priority over a prior unrecorded interest only if they (1) take without notice of the prior interest AND (2) record their deed first. Buyer 1 did not record. Buyer 2 had notice of Buyer 1, so B2 cannot prevail against B1. Buyer 3 is a good faith purchaser for value without notice and recorded first among those without notice, thus Buyer 3 prevails.

Question 2

A man conveyed a large parcel of land to a friend. The deed stated that it was to “my friend as long as he uses the property to grow organic vegetables that are not genetically manipulated, and if that proper use is not maintained, the property will immediately revert to the grantor.” 11 years later, the friend was charged with using genetic engineering techniques in violation of the regulations of the state’s agricultural department. What kind of an interest, if any, did the grantor retain by the wording in the deed?

Accepted Answer

He retains a possibility of reverter.

Answer

The language 'as long as he uses the property' followed by a condition, and then 'immediately revert to the grantor,' creates a fee simple determinable in the grantee. The grantor retains a future interest called a possibility of reverter. This interest automatically becomes possessory upon the breach of the stated condition, meaning the property automatically returns to the grantor.

Question 3

In 1970 a farmer purchased 50 acres of farm land. Several years later he built a house and lived on the property while also farming it. The property was landlocked, but there was a gravel road over the adjoining land directly to the nearest highway. Both the farmer’s land and the adjoining lot came from a larger parcel that was divided by the original owner. The farmer used the gravel road for farming and personal use. In 1991, a new owner purchased the adjoining land. She bulldozed the gravel road shut. The farmer filed an action in equity, asserting his absolute necessity to continue using the road to get to the highway. The new owner disagreed, and claimed that if an easement was granted by the court, it must be restricted to use only for crops at certain times, and that personal use should be disallowed or severely restricted because it was an unauthorized expansion of the original use. Which of the following would be the more likely decision of the equity court based on generally prevailing principles? The court will decree an express easement for the crops but the farmer’s personal use will be limited to twice daily. The court will decree that there is an easement in gross that can be used as long as the farmer pays a monthly charge to be determined by the new owner. The court will decree an implied license to use the adjoining property, which the new owner may terminate at any time. The court will decree an easement of necessity which includes the expanding reasonable use of the easement for any lawful use.

Accepted Answer

The court will decree an easement of necessity which includes the expanding reasonable use of the easement for any lawful use.

Answer

An easement by necessity arises when a parcel of land is landlocked and requires access over an adjoining parcel that was once part of the same larger tract. The scope of an easement by necessity is generally not limited to the original use but expands to accommodate any reasonable and lawful use of the dominant estate, provided it does not unreasonably burden the servient estate. Therefore, the farmer's personal use, in addition to farming, would likely be permitted as a reasonable expansion of the necessary access.

Question 4

An elderly man died with a will that had the following clause: “After payment of such debts and funeral expenses, I give and bequeath to my beloved wife the farm on which we now reside and all my personal property, so long as she remains my widow; the remainder on her remarriage or death to go to my son John..” Which one of the following estates in real property most closely reflects the wife’s interest upon her husband’s death?

Accepted Answer

It is a life estate that ends on her remarriage or death, with a remainder over to the son.

Answer

The phrase 'so long as she remains my widow' creates a determinable life estate for the wife, meaning her interest will automatically terminate upon her remarriage or death, whichever occurs first. The subsequent clause, 'the remainder on her remarriage or death to go to my son John,' clearly establishes a remainder interest in the son. This remainder will become possessory upon the termination of the wife's life estate.

Question 5

Two parties entered into an agreement of sale for a residential property. The title insurance company called the seller’s attorney to advise that one of the owners in the seller’s prior chain of title over 40 years ago had neglected to get a first mortgage with a private lender satisfied. It was likely that the mortgage was paid but that someone neglected to file a satisfaction notice with the recorder. If the problem had been corrected back then there was no evidence of it on the record. As such, the open mortgage now constituted a cloud on title. The title company required that the seller take action to clear title before final closing could be approved. Which of the following is the most likely way for the seller to clear title so that conveyance can be made.

Accepted Answer

An action of adverse possession against the bank holding the open mortgage of record.

Answer

A quiet title action is the appropriate legal proceeding to resolve competing claims to real property and remove a cloud on title, such as an old, unreleased mortgage. By naming the original mortgage holder and their potential heirs or assigns, the court can issue a judgment declaring the mortgage satisfied and clearing the title. This action makes the property marketable for sale.

Multistate Bar Exam Practice Test

Multistate Bar Exam Practice Test

Real Property MBE Practice Test 2017