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Title Producer practice questions

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Question 1Title Insurance Principles and the Need for Title Insurance

Title insurance is designed primarily to protect the insured against loss arising from which of the following?

  1. Physical damage to the property occurring after closing
  2. The borrower's failure to repay the insured mortgage
  3. Zoning changes adopted by the municipality after the policy date
  4. Title defects existing at the policy date Correct answer.

Explanation

Title insurance is a contract of indemnity against defects in title that exist when the policy takes effect. The insurer examines the public record and agrees to pay covered losses up to the policy amount. It does not insure against future physical events, post-policy governmental action, or a borrower's default.

Question 2Title Insurance Principles and the Need for Title Insurance

Which statement best describes the difference between an owner's policy and a mortgagee's policy?

  1. Owner's policy protects the buyer; mortgagee's policy protects the lender Correct answer.
  2. An owner's policy protects the lender for the life of the loan
  3. A mortgagee's policy remains in force after the loan is repaid
  4. A mortgagee's policy insures the buyer for as long as the buyer owns the home

Explanation

An owner's policy insures the buyer's ownership interest and continues for the insured and certain successors for as long as they hold title. A mortgagee's policy insures only the lender's security interest, and only up to the loan balance, ending when the debt is satisfied.

Question 3Title Insurance Principles and the Need for Title Insurance

How is the premium for an owner's title insurance policy normally paid?

  1. When the property is later sold by the insured owner
  2. Annually, on each anniversary of the closing date
  3. Once, at closing, and coverage continues indefinitely Correct answer.
  4. In monthly installments over the entire term of the loan

Explanation

An owner's policy is paid for with a single premium at closing and remains in force indefinitely, with no renewal premiums, for the insured owner and covered successors. This one-time payment structure is one of the features that distinguishes title insurance from casualty lines.

Question 4Title Insurance Principles and the Need for Title Insurance

A deed that is properly recorded in the public land records gives subsequent purchasers which type of notice?

  1. Actual notice given directly to the purchaser
  2. Inquiry notice arising from visible conditions
  3. Personal notice delivered to neighboring owners
  4. Constructive notice Correct answer.

Explanation

Recording is the statutory mechanism that charges the world with notice of an instrument's existence and contents, which is called constructive notice. Actual notice rests on what a purchaser really knows, and inquiry notice arises from facts that prompt a reasonable purchaser to investigate further.

Question 5Title Insurance Principles and the Need for Title Insurance

A title search mainly involves examining which of the following?

  1. The physical condition of the buildings and improvements
  2. The buyer's income and employment documentation
  3. The credit history of both the seller and the buyer
  4. Public records affecting the property over time Correct answer.

Explanation

A title search examines recorded conveyances, liens, and court records affecting the property, ordinarily over a defined search period. Physical condition, credit history, and income verification are gathered through inspection and loan underwriting rather than through title records.

Question 6Title Insurance Principles and the Need for Title Insurance

Marketable title most nearly means title that:

  1. Has been held by the same family for several generations
  2. Is free of any mortgage or deed of trust
  3. Can be sold at or above the appraised value
  4. A reasonable buyer would accept without objection Correct answer.

Explanation

Marketable title is title free from reasonable doubt, meaning a prudent buyer would accept it and a court would enforce the sale. It may still be subject to encumbrances the contract permits, such as recorded easements or monetary liens to be paid at closing.

Question 7Title Insurance Principles and the Need for Title Insurance

Title insurance differs from most other types of insurance in that it:

  1. Insures against accidents that happen in the future
  2. Requires annual renewal of the coverage
  3. Focuses on defects existing when the policy is issued Correct answer.
  4. Pays medical bills for injuries occurring on the property

Explanation

Title insurance is retrospective: it responds to title defects and adverse claims that already exist at issuance rather than to future accidents. That is why title work is done before closing and why the premium is a one-time charge rather than a recurring one.

Question 8Title Insurance Principles and the Need for Title Insurance

The chain of title is best described as:

  1. The recorded history of ownership transfers for the property Correct answer.
  2. The sequence of recorded owners and instruments linking the present owner to a point of origin
  3. The survey showing improvements and setbacks
  4. The list of exceptions printed in the issued policy

Explanation

The chain of title is the successive series of recorded conveyances, liens, and other instruments connecting the present owner back to a reasonable starting point. Gaps, inconsistencies, or instruments recorded outside the chain are the defects a title search is designed to reveal.

Question 9Title Insurance Principles and the Need for Title Insurance

Standard owner's title policies exclude loss caused by:

  1. A forged deed in the chain of title
  2. An unreleased mortgage from a prior owner
  3. A judgment lien against a previous owner
  4. Loss from the exercise of police power Correct answer.

Explanation

Sovereign acts such as the exercise of police power, eminent domain, and certain governmental regulations are standard exclusions in owner's policies. By contrast, record defects such as forgery, unreleased mortgages, and prior judgment liens are the kinds of risks the policy is written to insure.

Question 10Title Insurance Principles and the Need for Title Insurance

The title commitment issued before closing typically does what?

  1. Transfers ownership of the property to the buyer
  2. Guarantees that the buyer will close on the scheduled date
  3. Provides permanent insurance coverage effective on its issue date
  4. States the conditions the insurer requires before issuing the policy Correct answer.

Explanation

A commitment is an offer to issue a policy subject to stated requirements and exceptions; it sets out what must be cleared and what will be excepted. It is not itself a conveyance, a guarantee of closing, or a policy providing indemnity.

Question 11Title Insurance Principles and the Need for Title Insurance

Schedule B, Part I differs from Schedule B, Part II of a title commitment in that Part I:

  1. Lists the exceptions from coverage that will appear in the policy Correct answer.
  2. Contains the legal description of the insured land
  3. Shows the name of the proposed insured and the estate insured
  4. Lists the requirements that must be satisfied before the policy is issued

Explanation

In the standard commitment format, Schedule B-I states the requirements to be met before issuance, while Schedule B-II lists the exceptions that will carry forward into the policy. The insured's name and the legal description appear in Schedule A.

Question 12Title Insurance Principles and the Need for Title Insurance

A gap endorsement or gap coverage addresses liens that:

  1. Result from the insured's failure to pay property taxes
  2. Were created by the insured after the policy was issued
  3. Arose before the policy date and appear in the public records
  4. Arise between closing and the recording of the deed or mortgage Correct answer.

Explanation

Gap coverage protects the insured against matters that attach or are recorded after the effective date of the commitment but before the insured deed or mortgage reaches the record. It closes the interval in which a lien could slip in ahead of the insured instrument.

Question 13Title Insurance Principles and the Need for Title Insurance

A claim of title based on adverse possession concerns a title insurer because it:

  1. May ripen into ownership not reflected in the recorded chain of title Correct answer.
  2. Requires the payment of an annual recording fee
  3. Terminates all easements of record
  4. Is automatically covered without exception

Explanation

Adverse possession can vest ownership in an occupant without any recorded conveyance, so the record owner's title may be subject to a claim that never appears in the public records. Insurers investigate possession and use, and may except the risk where occupancy is inconsistent with the record.

Question 14Title Insurance Principles and the Need for Title Insurance

When a covered claim is made against an insured, the title insurer's duty to defend:

  1. Ends when the policy is transferred to a new owner
  2. Is limited to the amount of the policy premium
  3. Applies even if the claim turns out to be groundless Correct answer.
  4. Begins only after the insured obtains a court judgment

Explanation

The duty to defend is broader than the duty to pay; the insurer must defend covered claims even if they prove false or groundless. Defense costs are generally borne in addition to, rather than out of, the policy limit.

Question 15Title Insurance Principles and the Need for Title Insurance

A lender's title policy remains effective:

  1. Only until the deed is recorded
  2. For as long as the borrower owns the property
  3. For a fixed term of five years from closing
  4. Until the mortgage is repaid or otherwise satisfied Correct answer.

Explanation

A mortgagee's policy insures the lender's interest for as long as the debt remains outstanding and terminates when the loan is paid or otherwise discharged. It does not track the borrower's period of ownership.

Question 16Title Insurance Principles and the Need for Title Insurance

Compared with a standard owner's policy, an enhanced (extended) owner's policy typically:

  1. Can be issued only to institutional lenders
  2. Costs less because it removes the duty to defend
  3. Adds coverage for certain post-closing and off-record risks Correct answer.
  4. Excludes coverage for off-record risks

Explanation

Enhanced or extended owner's policies add protections beyond the standard form, often including matters such as certain survey and boundary issues and off-record risks. The broader coverage generally commands a higher premium and retains the insurer's duty to defend.

Question 17Title Insurance Principles and the Need for Title Insurance

A title plant is best described as:

  1. A compiled index of public records used to search title Correct answer.
  2. A reserve fund set aside to pay future claims
  3. The physical location of the insurer's local branch office
  4. A survey of the improvements on the land

Explanation

A title plant is an insurer-maintained compilation and index of public records that allows repeated searches to be completed quickly and consistently. It is a records resource, not a reserve, an inspection, or a physical facility for staff.

Question 18Title Insurance Principles and the Need for Title Insurance

An owner's title policy is typically issued in the amount of:

  1. The purchase price of the property Correct answer.
  2. The unpaid principal balance of the buyer's loan
  3. The amount of the annual premium charged
  4. The assessed value used for property taxes

Explanation

The owner's policy is normally written in the amount of the purchase price, which approximates the value of the interest being insured at closing. The amount does not automatically increase as the property appreciates, although inflation and other endorsements may adjust it.

Question 19Title Insurance Principles and the Need for Title Insurance

After paying a covered claim, a title insurer's right of subrogation allows it to:

  1. Require the insured to vacate the property
  2. Cancel the policy and retain the premium
  3. Reduce the policy amount by the amount paid
  4. Pursue recovery from the party who caused the loss Correct answer.

Explanation

Subrogation lets the insurer stand in the insured's shoes against the party responsible for the loss, but only after the claim has been paid. It does not permit the insurer to cancel coverage or to demand that the insured give up the property.

Question 20Title Insurance Principles and the Need for Title Insurance

A buyer obtaining a mortgagee's policy should also purchase an owner's policy because:

  1. The lender's policy expires at the end of the first year
  2. Two policies are required by every state's insurance code
  3. The lender's policy protects only the lender's interest Correct answer.
  4. The lender's policy covers only damage to the building

Explanation

A mortgagee's policy protects only the lender's security interest up to the loan balance, and any claim payment goes to the lender. The buyer's own equity and ownership interest remain unprotected without an owner's policy.

Question 21Title Insurance Principles and the Need for Title Insurance

A judgment lien against a prior owner of the property:

  1. Applies only to the debtor's personal property
  2. Cannot be indexed in the real property records
  3. May attach to the land and cloud title until released Correct answer.
  4. Automatically expires when the owner sells the land

Explanation

Once docketed or recorded, a judgment lien may attach to the debtor's real property in the county and must be released, satisfied, or otherwise resolved before title is clear. A transfer of the land by the debtor does not automatically extinguish the lien.

Question 22Title Insurance Principles and the Need for Title Insurance

Hidden heirs of a deceased prior owner create a title risk because:

  1. They may hold an interest that does not appear in the record Correct answer.
  2. Their claims are barred after ninety days by federal law
  3. They must always be named as insureds on the policy
  4. Heirs cannot inherit property that carries a mortgage

Explanation

Probate and inheritance can create or transfer interests that never appear in the recorded chain of title, and an omitted heir may later assert an interest. Insurers therefore examine probate records and may except the rights of persons claiming by inheritance.

Question 23Title Insurance Principles and the Need for Title Insurance

A deed recorded outside the chain of title, often called a wild deed, is significant because it:

  1. May not give constructive notice to buyers Correct answer.
  2. Takes priority over every instrument recorded later
  3. Must be re-recorded before the closing date
  4. Is void and has no legal effect in any state

Explanation

A deed recorded outside the chain of title may not be indexed in a way that a later purchaser's reasonable search would uncover, so it may fail to give constructive notice. The underlying interest may still exist and can surface later as a claim against the insured.

Question 24Title Insurance Principles and the Need for Title Insurance

Which of the following is a risk insured by an owner's title policy?

  1. A prior owner's undisclosed heir claiming an interest Correct answer.
  2. Injury to a visitor on the premises
  3. Theft of personal property from the home
  4. Fire and windstorm damage to the structure

Explanation

Title insurance indemnifies the insured against title defects and adverse claims, including claims by undisclosed heirs of a prior owner. Fire, theft, and injuries to visitors are casualty and liability exposures covered by other lines of insurance.

Question 25Real Property Law: Estates, Ownership, and Conveyances

A deed conveys Blackacre 'to Ann and her heirs.' What estate does Ann receive?

  1. Fee tail
  2. Life estate
  3. Fee simple determinable
  4. Fee simple absolute Correct answer.

Explanation

Words of inheritance such as 'and her heirs' create a fee simple absolute, the largest estate recognized at law. Modern courts treat the phrase as marking an inheritable estate in Ann; her heirs take nothing presently and have no vested interest.

Question 26Real Property Law: Estates, Ownership, and Conveyances

Ben and Carla own a house as tenants in common in unequal shares. Carla dies intestate. What happens to Carla's share?

  1. It escheats to the state
  2. It passes automatically to Ben by survivorship
  3. It passes to Carla's heirs or devisees Correct answer.
  4. It reverts to the original grantor

Explanation

Tenants in common hold undivided shares with no right of survivorship, so each owner may devise her share or let it pass through intestacy. The surviving co-tenant keeps only its own undivided share.

Question 27Real Property Law: Estates, Ownership, and Conveyances

Al, Bo, and Cy hold Blackacre as joint tenants with right of survivorship. Al conveys her interest to Dina. What is the state of title?

  1. Dina takes one-third in common; Bo and Cy remain joint tenants Correct answer.
  2. Dina holds a life estate measured by Al's life
  3. The conveyance is void because joint tenants cannot convey their shares unilaterally
  4. Dina becomes a joint tenant with Bo and Cy

Explanation

A joint tenant may convey her interest unilaterally, and that conveyance severs the joint tenancy as to that share because the unities of title and time are destroyed. Dina holds an undivided one-third as a tenant in common, while Bo and Cy continue to hold their shares with survivorship between themselves.

Question 28Real Property Law: Estates, Ownership, and Conveyances

O conveys Blackacre 'to Pam and her heirs, but if Blackacre is ever used for commercial purposes, O may re-enter and retake the land.' Pam holds a fee simple subject to a condition subsequent, and O retains:

  1. A right of entry Correct answer.
  2. An executory interest
  3. A possibility of reverter
  4. A vested remainder

Explanation

Language permitting the grantor to re-enter and retake the land upon a stated event creates a right of entry, also called a power of termination. It accompanies a fee simple subject to a condition subsequent and does not shift title automatically.

Question 29Real Property Law: Estates, Ownership, and Conveyances

Which estate lasts for the life of a person other than the holder?

  1. Estate for years
  2. Life estate pur autre vie Correct answer.
  3. Fee simple determinable
  4. Tenancy at sufferance

Explanation

A life estate pur autre vie is measured by the life of someone other than the tenant, and it passes to the tenant's successor if the tenant dies before the measuring life ends.

Question 30Real Property Law: Estates, Ownership, and Conveyances

Ruth signs and acknowledges a deed to her nephew, gives it to her lawyer, and says, 'Record this after I die; I want to keep control of it until then.' Ruth dies without retrieving the deed. Is the conveyance effective?

  1. No, because a deed may not be recorded after the grantor dies
  2. Yes, because recording after death satisfies the delivery requirement
  3. No, because Ruth retained control and lacked present intent to deliver Correct answer.
  4. Yes, because the deed was signed, acknowledged, and recorded after her death

Explanation

Delivery requires a present intent that the deed take effect immediately. Retaining control of the instrument with instructions to record at death shows the grantor intended no present conveyance, so the deed is ineffective.

Question 31Real Property Law: Estates, Ownership, and Conveyances

Ned openly farms his neighbor's unused field every season for the statutory period, but he does so with the neighbor's permission. Does Ned acquire title by adverse possession?

  1. No, because adverse possession requires a recorded deed
  2. Yes, if he paid all property taxes for the period
  3. No, because permissive use is not hostile Correct answer.
  4. Yes, because his use was open and continuous

Explanation

Adverse possession requires possession that is actual, open and notorious, exclusive, continuous, and hostile to the true owner. Use with the owner's permission is not hostile, so no title passes regardless of how long it continues.

Question 32Real Property Law: Estates, Ownership, and Conveyances

O conveys Blackacre to Amy, who does not record. O then conveys the same land to Beth, who knows of Amy's deed, and Beth records immediately. The state has a race-notice statute. Who owns Blackacre?

  1. Beth, because she recorded before Amy
  2. Neither; the second deed is void
  3. Amy, because Beth took with notice Correct answer.
  4. Beth, because Amy failed to record

Explanation

A race-notice statute protects only a subsequent purchaser who takes without notice and records first. Beth had actual notice of Amy's prior conveyance, so she takes subject to Amy's deed even though she recorded first.

Question 33Real Property Law: Estates, Ownership, and Conveyances

Orin sells a parcel that has no access to any public road, leaving the buyer landlocked. The buyer may claim:

  1. An easement in gross
  2. An easement by necessity Correct answer.
  3. A license
  4. An easement by prescription

Explanation

An easement by necessity arises by operation of law when strict necessity exists at the time a parcel is severed from access to a public road, as with a landlocked conveyance.

Question 34Real Property Law: Estates, Ownership, and Conveyances

A recorded easement appurtenant benefits Lot 1 and burdens Lot 2. The owner of Lot 1 conveys Lot 1 by a deed that says nothing about the easement. What becomes of the easement?

  1. It passes with Lot 1 to the new owner Correct answer.
  2. It is extinguished by the failure to mention it
  3. It becomes an easement in gross
  4. It must be formally reassigned in writing

Explanation

An easement appurtenant runs with the dominant estate and passes automatically with a conveyance of that estate even when the deed is silent. No separate assignment is needed.

Question 35Real Property Law: Estates, Ownership, and Conveyances

O conveys 'to Ann for life, then to Ann's children who reach age 25.' At the creation of the interest, is the remainder valid under the common-law Rule Against Perpetuities?

  1. Yes, because Ann is a measuring life in being
  2. No, because the remainder is held by unascertained persons
  3. No, because a child could reach 25 more than 21 years after Ann's death Correct answer.
  4. Yes, because every child will eventually reach 25

Explanation

A future interest is void unless it must vest or fail within lives in being plus 21 years. A child of Ann living at the creation but under four years old could reach 25 more than 21 years after Ann's death, so the class gift is void.

Question 36Real Property Law: Estates, Ownership, and Conveyances

O conveys to Ada, who never records. O then conveys to Ben, a bona fide purchaser who records. Ben later conveys to Cleo, who knows about Ada's unrecorded deed. In a notice jurisdiction, who prevails between Ada and Cleo?

  1. Cleo, but only if she records before Ada does
  2. Cleo, because she takes Ben's protected position Correct answer.
  3. Ada, because Ben's deed was outside the chain of title
  4. Ada, because Cleo took with actual notice

Explanation

Under the shelter rule, a transferee from a protected purchaser succeeds to the transferor's protected status even if the transferee has notice of the earlier unrecorded interest. Cleo therefore stands in Ben's shoes and prevails over Ada.

Question 37Real Property Law: Estates, Ownership, and Conveyances

Which form of co-ownership can be created only by a married couple?

  1. Tenancy by the entirety Correct answer.
  2. Joint tenancy
  3. Tenancy in common
  4. Life estate

Explanation

Tenancy by the entirety requires a valid marriage and gives each spouse an undivided interest with a right of survivorship. Neither spouse may unilaterally convey an interest in the property.

Question 38Real Property Law: Estates, Ownership, and Conveyances

A tenant installs a large commercial oven in her bakery, bolted to the floor and connected to the gas line. Her lease expires next month. What is the tenant's right to the oven?

  1. It passed to the landlord as a fixture when installed
  2. It became part of the realty by accession
  3. It is a trade fixture she may remove before the lease ends Correct answer.
  4. The landlord owns it, but she may offset its value against rent

Explanation

Items installed by a tenant for use in a trade or business are trade fixtures and remain the tenant's personal property. The tenant may remove them before the lease ends if removal does not materially damage the premises.

Question 39Real Property Law: Estates, Ownership, and Conveyances

Which requirement must be satisfied for the burden of a covenant to run at law, but is not required to enforce the same restriction as an equitable servitude?

  1. Intent that the restriction bind successors
  2. Horizontal and vertical privity of estate Correct answer.
  3. A writing signed by the party to be bound
  4. Notice to the party to be bound

Explanation

Running the burden of a real covenant at law requires privity of estate in addition to intent, notice, and touch and concern. Equity will enforce a servitude against a successor who has notice without any showing of privity.

Question 40Real Property Law: Estates, Ownership, and Conveyances

Dana holds a recorded easement of way across Evan's parcel. Dana then buys Evan's parcel, owning both tracts in fee simple. Two years later Dana sells the formerly servient parcel to Frank. What is the status of the right of way?

  1. It was suspended and revived when Dana sold to Frank
  2. It remained in force throughout because it was recorded
  3. It was converted into an easement by necessity
  4. It was extinguished by merger and is not revived by the later sale Correct answer.

Explanation

When one owner holds both the dominant and servient estates in fee simple, the easement is extinguished by merger because no one can hold an easement over her own land. A later severance does not revive it, although a new implied easement may arise on different facts.

Question 41Real Property Law: Estates, Ownership, and Conveyances

Which of the following is required for a valid conveyance of land by deed?

  1. A description sufficient to identify the land Correct answer.
  2. Acknowledgment before a notary public
  3. Recording by the grantee
  4. Payment of consideration

Explanation

A deed must name the parties, show an intent to convey, describe the land sufficiently to locate it, and be signed by the grantor. Acknowledgment, recording, and consideration are not essential to validity between the parties.

Question 42Real Property Law: Estates, Ownership, and Conveyances

Which covenant in a general warranty deed is a future covenant, breached only if the grantee is later disturbed in possession?

  1. Covenant of seisin
  2. Covenant of right to convey
  3. Covenant of quiet enjoyment Correct answer.
  4. Covenant against encumbrances

Explanation

The covenant of quiet enjoyment promises that the grantee will not be disturbed in possession and is breached, if at all, by a later eviction or superior title. The other listed covenants are present covenants breached, if at all, at delivery.

Question 43Real Property Law: Estates, Ownership, and Conveyances

A buyer and seller sign a binding contract for the sale of land, with closing set 60 days later. Before closing, the buyer holds:

  1. Legal title, with the seller holding only a purchase-money lien
  2. No interest in the land until closing
  3. Equitable title, with the seller retaining legal title Correct answer.
  4. A license to enter pending closing

Explanation

Under the doctrine of equitable conversion, the buyer acquires equitable title when the contract is signed, while the seller retains legal title as security for payment. This is why many jurisdictions place the risk of loss on the buyer.

Question 44Real Property Law: Estates, Ownership, and Conveyances

O deeds Blackacre to Amy, who never records. Amy deeds the parcel to Bob, who records. O then deeds the same parcel to Carl, who has no notice of either Amy or Bob. Under a notice statute, who prevails?

  1. Carl's deed is void because O had already conveyed away title
  2. Amy, because her deed was first in time
  3. Bob, because he recorded before Carl bought
  4. Carl, because Bob's recording was outside the chain of title Correct answer.

Explanation

Bob's record title rests on Amy's unrecorded deed, so his recording appears nowhere in the chain running from O and gives Carl no constructive notice. A subsequent purchaser without notice therefore prevails over the earlier unrecorded chain.

Question 45Real Property Law: Estates, Ownership, and Conveyances

O conveys Blackacre 'to Pat and his heirs, but if liquor is ever sold on the premises, then to Quinn and her heirs.' Quinn holds:

  1. An executory interest Correct answer.
  2. A right of entry
  3. A vested remainder
  4. A contingent remainder

Explanation

A future interest that automatically cuts short a prior fee simple on a stated event is a shifting executory interest. Because it follows a fee estate, it cannot be classified as a remainder.

Question 46Real Property Law: Estates, Ownership, and Conveyances

O conveys Blackacre 'to Rita and her heirs, but Rita may not sell the land for ten years, and any sale during that period is void.' How will a court most likely treat the restriction?

  1. Valid, because the restriction was recorded with the deed
  2. Valid, because it is limited to a short period
  3. Valid, because Rita accepted the deed with notice
  4. Invalid, because a disabling restraint of this sort is void Correct answer.

Explanation

A disabling restraint makes any attempted conveyance void and is the most severe form of restraint on alienation, so courts generally refuse to enforce it. Notice, acceptance, and recording do not supply a legitimate purpose that would save it.

Question 47Real Property Law: Estates, Ownership, and Conveyances

Lena holds a life estate in farmland that contains a coal mine already worked by the grantor. Lena continues mining coal in the same manner as before. How is her conduct characterized?

  1. Waste, unless the remainderman consents in writing
  2. Permitted, but only if the remainderman receives half the royalties
  3. Waste, because a life tenant may never remove minerals
  4. Permitted, because she continues a preexisting use of the land Correct answer.

Explanation

Under the open mine doctrine, a life tenant may continue mineral operations that were already open when the life estate began. Opening new mines or expanding existing operations generally constitutes waste.

Question 48Real Property Law: Estates, Ownership, and Conveyances

O delivers a warranty deed conveying Blackacre to Sam before O owns it. O later acquires title to Blackacre. Who owns the parcel?

  1. O, because O had nothing to convey at the time of the deed
  2. Sam, by estoppel by deed Correct answer.
  3. Sam, but only if Sam recorded before O acquired title
  4. O, because the earlier deed was void from the start

Explanation

Under estoppel by deed, a grantor who purports to convey land by warranty deed and later obtains title is estopped from denying that title passed. Title inures to the grantee when the grantor acquires it.

Question 49Liens, Encumbrances, and Title Defects

A lien is best described as which of the following?

  1. An ownership interest held by two or more parties at once
  2. A transfer of legal title from the owner to a lender
  3. A charge on property securing a debt or obligation Correct answer.
  4. A recorded restriction limiting how land may be used

Explanation

A lien is a charge or claim against property that secures payment of a debt; the owner keeps title while the property stands as security. It is a monetary encumbrance, not a transfer of ownership.

Question 50Liens, Encumbrances, and Title Defects

Which of the following is a general lien?

  1. A property tax lien on one parcel
  2. A mechanic's lien on a single project
  3. A purchase-money mortgage on one lot
  4. A judgment lien on the debtor's realty Correct answer.

Explanation

General liens attach to all of the debtor's property, as a judgment lien does. Specific liens attach only to identified property, such as one mortgaged or improved parcel.