Multistate Bar Exam Real Property 2 — Questions and Answers
Question 1: A landlord leases an apartment to a tenant for one year. Mid-lease, the landlord sells the building. The new owner refuses to honor the lease. What is the tenant's best claim?
- The lease terminates automatically upon sale
- The tenant may sue the original landlord for breach of contract only
- The lease binds the new owner because it runs with the land (Correct answer)
- The tenant must vacate but can recover a security deposit
Correct answer: The lease binds the new owner because it runs with the land
A lease is a conveyance of a property interest that runs with the land and binds subsequent purchasers who take with notice.
Question 2: Owen grants Blackacre 'to Anna and her heirs, but if the land is ever used for commercial purposes, then to Ben.' What interest does Ben hold?
- A remainder
- A right of entry
- An executory interest (Correct answer)
- A reversion
Correct answer: An executory interest
Ben holds a shifting executory interest because his future interest cuts short a fee simple rather than following the natural expiration of a prior estate.
Question 3: A deed recorded before a prior unrecorded deed under a race-notice statute will prevail only if the subsequent purchaser:
- Records first regardless of notice
- Pays valuable consideration and records first without notice of the prior conveyance (Correct answer)
- Has actual notice but records before the prior grantee
- Is a donee who records immediately
Correct answer: Pays valuable consideration and records first without notice of the prior conveyance
Under a race-notice statute, the subsequent purchaser must both record first AND take without notice of the prior conveyance.
Question 4: A cotenant in a tenancy in common exclusively possesses the entire property and excludes the other cotenant. The excluded cotenant may bring an action for:
- Ejectment only
- Ouster and recover a proportionate share of rental value (Correct answer)
- Partition only
- Quiet title
Correct answer: Ouster and recover a proportionate share of rental value
When one cotenant ousts another by exclusive possession, the ousted cotenant may recover their proportionate share of fair rental value.
Question 5: Under the equitable mortgage doctrine, a deed absolute on its face will be treated as a mortgage when:
- The grantor retains possession
- The parties intended the deed as security for a debt (Correct answer)
- The grantee fails to record the deed
- The deed lacks consideration
Correct answer: The parties intended the deed as security for a debt
Courts apply the equitable mortgage doctrine when evidence shows the parties intended a conveyance to function as security for repayment of a debt.
Question 6: A seller and buyer enter a real estate contract. Before closing, a fire destroys the house. Under the majority rule (equitable conversion):
- The seller bears the loss and must refund the deposit
- The buyer bears the loss because equitable title passed at contract execution (Correct answer)
- The loss is split equally between buyer and seller
- The contract is void and both parties are excused
Correct answer: The buyer bears the loss because equitable title passed at contract execution
Under the majority equitable conversion rule, equitable title passes to the buyer upon contract execution, so the buyer bears the risk of loss.
Question 7: A negative easement prevents a servient estate owner from doing something on their land. Which of the following is a recognized traditional negative easement?
- Preventing the servient owner from playing loud music
- Blocking a neighbor's view of a scenic mountain
- Obstructing light and air reaching the dominant estate (Correct answer)
- Parking vehicles on a shared driveway
Correct answer: Obstructing light and air reaching the dominant estate
Traditional negative easements include light, air, support, and streamflow — courts historically refused to expand this list to include view easements.
Multistate Bar Exam Real Property 2
A landlord leases an apartment to a tenant for one year.
Mid-lease, the landlord sells the building.
The new owner refuses to honor the lease.
What is the tenant's best claim?