SC Bar Property Law 3 — Questions and Answers
Question 1: A deed is signed and acknowledged but kept in the grantor's desk drawer until his death, when it is found addressed to his nephew. Is the conveyance valid?
- No, because the deed was never delivered (Correct answer)
- Yes, because it was signed and acknowledged
- Yes, because the nephew is a natural object of bounty
- No, because it lacked consideration
Correct answer: No, because the deed was never delivered
A deed is ineffective without delivery, which requires the grantor's present intent to pass title during life.
Question 2: A buyer signs a contract to purchase a home, and the house burns down before closing through no fault of either party. Under the majority equitable conversion rule, who bears the risk of loss?
- The buyer (Correct answer)
- The seller
- The parties share equally
- The seller's insurer exclusively
Correct answer: The buyer
Under equitable conversion, the buyer holds equitable title once the contract is signed and therefore bears the risk of loss before closing.
Question 3: A restrictive covenant limits lots in a subdivision to residential use. A new owner who had no actual knowledge of the covenant opens a business. What theory best allows neighbors to enforce the restriction against her?
- Implied reciprocal servitude based on a common scheme with record or inquiry notice (Correct answer)
- Easement by necessity
- Adverse possession
- The covenant is unenforceable without actual notice
Correct answer: Implied reciprocal servitude based on a common scheme with record or inquiry notice
A common scheme of development plus record or inquiry notice permits enforcement of implied reciprocal negative servitudes against subsequent purchasers.
Question 4: A mortgagor in South Carolina defaults on her home loan. Which statement best describes the required foreclosure process?
- Foreclosure must proceed judicially through the courts (Correct answer)
- The lender may use a nonjudicial power-of-sale foreclosure
- The lender may retake title by mere notice to the borrower
- Strict foreclosure without sale is the standard remedy
Correct answer: Foreclosure must proceed judicially through the courts
South Carolina is a judicial foreclosure state, so lenders must obtain a court decree before a foreclosure sale.
Question 5: A neighbor's use of a driveway across another's land began with the owner's oral permission. After 15 years of use, the neighbor claims a prescriptive easement. What is the likely result?
- No easement, because permissive use is not hostile (Correct answer)
- An easement, because the use exceeded the statutory period
- An easement, because oral permission is void under the Statute of Frauds
- No easement, because driveways cannot be acquired by prescription
Correct answer: No easement, because permissive use is not hostile
Use that begins and continues with the owner's permission lacks the hostility required for a prescriptive easement.
Question 6: H and W, a married couple, take title "as tenants in common." H dies intestate. Who takes H's one-half interest?
- H's heirs under intestacy law (Correct answer)
- W automatically by survivorship
- The state by escheat
- W takes only if she paid part of the price
Correct answer: H's heirs under intestacy law
Tenancy in common carries no right of survivorship, so a deceased cotenant's share passes to his heirs or devisees.
Question 7: A general warranty deed contains six covenants of title. Which covenant runs with the land and may be enforced by remote grantees?
- The covenant of quiet enjoyment (Correct answer)
- The covenant of seisin
- The covenant of right to convey
- The covenant against encumbrances
Correct answer: The covenant of quiet enjoyment
Future covenants such as quiet enjoyment run with the land and protect remote grantees upon eviction by superior title.
SC Bar Property Law 3
A deed is signed and acknowledged but kept in the grantor's desk drawer until his death, when it is found addressed to his nephew.
Is the conveyance valid?