NYLE Real Property Law 2 — Questions and Answers
Question 1: Under New York law, which type of deed provides the LEAST protection to the grantee?
- Warranty deed
- Bargain and sale deed with covenants
- Quitclaim deed (Correct answer)
- Executor's deed
Correct answer: Quitclaim deed
A quitclaim deed conveys only whatever interest the grantor has, if any, with no warranties or covenants of title.
Question 2: In New York, a mortgage is legally characterized as:
- A transfer of title to the lender until repayment
- A lien on the property securing the debt (Correct answer)
- A conditional sale of the property
- An easement granted to the lender
Correct answer: A lien on the property securing the debt
New York follows the lien theory of mortgages, meaning the borrower retains title and the mortgage creates only a lien in favor of the lender.
Question 3: A seller fails to disclose a latent defect in a residential property sold in New York. Under the Property Condition Disclosure Act, the buyer's most likely remedy is:
- Rescission of the contract and return of the purchase price
- A $500 credit at closing if no disclosure statement was provided (Correct answer)
- Criminal prosecution of the seller
- Mandatory seller repair before closing
Correct answer: A $500 credit at closing if no disclosure statement was provided
Under the PCDA, if the seller fails to deliver the required disclosure statement, the buyer is entitled to a $500 credit against the purchase price at closing.
Question 4: Which of the following best describes an easement appurtenant in New York?
- An easement that benefits a specific person regardless of land ownership
- An easement that runs with the land and benefits a dominant tenement (Correct answer)
- An easement created by adverse use for the statutory period
- An easement granted only for commercial purposes
Correct answer: An easement that runs with the land and benefits a dominant tenement
An easement appurtenant attaches to and runs with the dominant estate, automatically transferring with ownership of the benefited parcel.
Question 5: Under New York's Race-Notice recording statute, a subsequent purchaser is protected only if they:
- Record their deed before any prior grantee
- Pay valuable consideration and record without notice of prior conveyances (Correct answer)
- Record within 30 days of closing
- Obtain title insurance before recording
Correct answer: Pay valuable consideration and record without notice of prior conveyances
New York's recording act protects a subsequent purchaser for value who records first and takes without actual or constructive notice of prior unrecorded conveyances.
Question 6: A tenant in New York holds over after the expiration of a one-year lease without the landlord's consent. The landlord may elect to treat this as:
- A month-to-month tenancy only
- Either a month-to-month tenancy or a new one-year tenancy (Correct answer)
- A trespass requiring immediate eviction
- A new five-year lease by operation of law
Correct answer: Either a month-to-month tenancy or a new one-year tenancy
Under New York law, when a tenant holds over after a fixed-term lease, the landlord may elect to treat the holdover as either a month-to-month tenancy or bind the tenant to a new term equal to the original lease (up to one year).
Question 7: In New York, the Statute of Frauds requires that a contract for the sale of real property must be:
- Notarized by a licensed notary public
- In writing and signed by the party to be charged (Correct answer)
- Filed with the county clerk within 10 days of execution
- Witnessed by two disinterested parties
Correct answer: In writing and signed by the party to be charged
New York's Statute of Frauds (GOL § 5-703) requires contracts for the sale of real property to be in writing and subscribed by the party to be charged.
NYLE Real Property Law 2
Under New York law, which type of deed provides the LEAST protection to the grantee?