ALP ALP Real Estate & Property Law 3

Question 1

Local 'zoning' ordinances primarily regulate:

Accepted Answer

How land within a jurisdiction may be used

Answer

The assessed value of real property for tax purposes

Answer

Property transfers between family members

Answer

Prevailing mortgage interest rates in the area

Question 2

A 'deed of trust' differs from a standard mortgage primarily because it:

Accepted Answer

Involves three parties: the borrower, lender, and a neutral trustee

Answer

Involves only two parties: the borrower and the lender

Answer

Cannot be used as the basis for a foreclosure action

Answer

Does not create a security interest in the real property

Question 3

What is a 'homestead exemption' in U.S. property law?

Accepted Answer

A legal protection shielding a portion of a primary residence's value from creditors

Answer

A complete exemption from property taxes available to all homeowners

Answer

A special zoning classification for residential land use

Answer

A right granted to long-term occupants to remain on another's land

Question 4

In landlord-tenant law, 'constructive eviction' occurs when:

Accepted Answer

A landlord's failure to maintain habitable conditions forces the tenant to vacate

Answer

A tenant is physically removed from the premises by law enforcement

Answer

A landlord changes the locks without prior court authorization

Answer

A court issues a formal order requiring the tenant to vacate

Question 5

What legal effect does 'recording' a deed in the county land records accomplish?

Accepted Answer

Provides constructive notice to the public of the ownership transfer

Answer

Itself transfers ownership of the property between the parties

Answer

Guarantees the accuracy of all property boundary descriptions

Answer

Establishes the official purchase price for state transfer tax purposes

Question 6

A 'purchase and sale agreement' in a real estate transaction is:

Accepted Answer

A binding contract obligating both buyer and seller to complete the property transfer on agreed terms

Answer

A preliminary letter of intent with no legally binding effect

Answer

A title insurance commitment issued by the title company

Answer

A loan commitment letter from the buyer's mortgage lender