Ch 5 Encumbrences 7 Liens Flashcards Preview

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Flashcards in Ch 5 Encumbrences 7 Liens Deck (7)
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1
Q
  1. Easements and encroachments are types of
    a. lien.
    b. deed restriction.
    c. encumbrance.
    d. appurtenance.
A

c. encumbrance.

2
Q
  1. There are two adjoining properties. An easement allows property A to use the access road that belongs to property B. In this situation, property A is said to be which of the following in relation to property B?
    a. Subservient estate
    b. Servient estate
    c. Senior tenant
    d. Dominant tenement
A

d. Dominant tenement

3
Q
  1. The lien priority of junior liens can be changed by a lienor’s agreement to
    a. forgive portions of the debt.
    b. assign the note.
    c. foreclose on the note.
    d. subordinate.
A

d. subordinate.

4
Q
  1. What is meant by a “lien-theory” state?
    a. A state in which liens are given priority over other encumbrances
    b. A state in which a mortgagor retains title to the property when a mortgage lien is created
    c. A state in which the holder of a mortgage lien receives title to the mortgaged property until the debt is satisfied
    d. A state in which liens exist in theory but not in practice
A

b. A state in which a mortgagor retains title to the property when a mortgage lien is created

5
Q
  1. A homeowner has hired a contractor to build a room addition. The work has been completed and the contractor has been paid for all work and materials but fails to pay the lumber yard for a load of lumber. What potential problem may the home owner experience?
    a. The contractor may place a mechanic’s lien for the amount of the lumber against the homeowner’s real property.
    b. The lumber yard may place a vendor’s lien against the contractor and the homeowner for the amount of the lumber.
    c. The lumber yard may place a mechanic’s lien for the amount of the lumber against the homeowner’s real property.
    d. The homeowner has no liability because the contractor was paid for the lumber.
A

c. The lumber yard may place a mechanic’s lien for the amount of the lumber against the homeowner’s real property.

6
Q
  1. An important difference between a judicial foreclosure and a non-judicial foreclosure is
    a. there is no right to redeem the property in a nonjudicial foreclosure.
    b. a judicial foreclosure forces a sale of the property.
    c. a non-judicial foreclosure ensures that all liens are paid in order of priority.
    d. the lienor receives title directly in a non-judicial foreclosure.
A

a. there is no right to redeem the property in a nonjudicial foreclosure.

7
Q
  1. A property owner allows Betty Luanne to cross his property as a shortcut to her kindergarten school bus. One day the property owner dies. What right was Betty given, and what happens to it in the future?
    a. A personal easement in gross, which continues after the owner’s death
    b. An easement by prescription, which continues after the owner’s death
    c. A license, which continues after the owner’s death
    d. A license, which terminates at the owner’s death
A

d. A license, which terminates at the owner’s death