Real Property (Foundational) Question Pack - Questions and Answers

1. A grantor conveyed property "to Alex for life, then to Morgan, but only if Morgan graduates from medical school."

What type of future interest does Morgan hold?

  1. Vested remainder
  2. Contingent remainder
  3. Executory interest
  4. Possibility of reverter

Correct Answer: B

Explanation: Morgan's interest is contingent on the condition of graduating from medical school. The remainder is not guaranteed, so it is contingent.

Why the other options are incorrect
A requires an ascertained person without conditions precedent.
C applies when the future interest cuts short a prior estate.
D is held by the grantor, not a third party.

2. Two friends purchased land together but did not specify how they intended to hold title. Each paid half and the deed listed both names.

What tenancy was created?

  1. Tenancy in common
  2. Joint tenancy with right of survivorship
  3. Tenancy by the entirety
  4. Fee simple subject to condition subsequent

Correct Answer: A

Explanation: When co-owners purchase property without specifying survivorship, the default is tenancy in common. Each has a separate, undivided interest.

Why the other options are incorrect
B requires express survivorship language.
C only applies to married couples.
D is a type of defeasible fee, not a co-tenancy.

3.A landlord rented an apartment to a tenant under a one-year lease. After three months, the tenant abandoned the premises. The landlord did nothing to find a replacement.

Is the landlord entitled to full rent?

  1. Yes, the tenant breached and must pay the balance
  2. No, because failure to mitigate bars recovery
  3. Yes, unless the lease includes a duty to mitigate
  4. No, because abandonment voids the lease automatically

Correct Answer: B

Explanation: Landlords must make reasonable efforts to mitigate damages in most jurisdictions. Failing to do so limits recovery.

Why the other options are incorrect
A ignores the mitigation duty.
C duty is implied by law, not just contract.
D abandonment alone does not terminate leases automatically.

4. A deed conveyed land "to Taylor and Jordan as joint tenants with right of survivorship." Jordan later sold her interest to Chris.

How is the property held now?

  1. Taylor and Chris hold as joint tenants
  2. Taylor and Chris hold as tenants in common
  3. Taylor owns the entire interest
  4. Chris owns a future interest only

Correct Answer: B

Explanation: A conveyance by one joint tenant severs the joint tenancy. Taylor and Chris become tenants in common.

Why the other options are incorrect
A joint tenancy requires unity of interest, which is severed by transfer.
C Taylor retains only her original share.
D Chris owns a present possessory interest.

5. A buyer signed a real estate contract to purchase a home. Before closing, the house was destroyed in a fire. No provision in the contract addressed risk of loss.

Who bears the loss?

  1. Seller, because title had not transferred
  2. Buyer, under equitable conversion
  3. Seller, because the fire occurred before closing
  4. Buyer, only if insurance was obtained

Correct Answer: B

Explanation: Under equitable conversion, the buyer holds equitable title once the contract is signed and typically bears the risk of loss.

Why the other options are incorrect
A applies only in minority jurisdictions.
C timing does not override equitable principles.
D insurance may offset loss but is not determinative.

6. A property owner created a restrictive covenant limiting the lot to residential use. The owner conveyed the lot to a buyer who later built a commercial office.

Is the covenant enforceable?

  1. No, because restrictive covenants are personal in nature
  2. Yes, if the covenant runs with the land and burdened the estate
  3. No, unless damages are sought
  4. Yes, only if the deed mentioned the covenant

Correct Answer: B

Explanation: A restrictive covenant that touches and concerns the land and satisfies privity requirements may run with the land and bind successors.

Why the other options are incorrect
A misstates property law — covenants can bind successors.
C remedies include injunctions.
D record notice and intent may suffice even if not repeated in deed.

7. A landowner granted a neighbor an oral right to cross his land to reach the main road. The neighbor used the path regularly for 20 years.

What interest has likely been created?

  1. License
  2. Express easement
  3. Easement by prescription
  4. Profit

Correct Answer: C

Explanation: Regular, continuous, and adverse use for the statutory period creates an easement by prescription, even without a written agreement.

Why the other options are incorrect
A is revocable and does not last through years of use.
B must be in writing under the Statute of Frauds.
D involves rights to remove resources, not access.

8. A tenant leased space for five years but abandoned it during the fourth year. The landlord found a new tenant two months later at a lower rent.

Can the landlord recover the rent difference?

  1. No, because the lease ended upon abandonment
  2. Yes, because the tenant remains liable for damages
  3. No, unless abandonment was unreasonable
  4. Yes, if the tenant agreed to pay full rent regardless

Correct Answer: B

Explanation: Once a tenant breaches, the landlord may mitigate and seek damages including any deficiency between the old and new rent.

Why the other options are incorrect
A ignores continuing obligations.
C does not change liability for breach.
D enforceability depends on mitigation and loss.

9. A grantor conveyed land "to Riley so long as the land is used for agricultural purposes."

What future interest has the grantor retained?

  1. Reversion
  2. Possibility of reverter
  3. Executory interest
  4. Vested remainder

Correct Answer: B

Explanation: A fee simple determinable ends automatically upon condition, and the grantor retains a possibility of reverter.

Why the other options are incorrect
A applies to limited estates like life estates.
C is held by third parties, not grantors.
D does not follow determinable fees.

10. A condo association adopted rules banning pets. A unit owner claimed this was an unreasonable restriction.

What factor most strongly supports the rule’s enforceability?

  1. The restriction was voted on unanimously
  2. The rule applies equally to all owners
  3. The original declaration authorized such rules
  4. The restriction aligns with local zoning laws

Correct Answer: C

Explanation: If the governing documents allow reasonable regulations, and the restriction is consistent with the declaration, courts generally uphold it.

Why the other options are incorrect
A unanimity helps but is not determinative.
B uniformity matters, but authority under documents is key.
D zoning laws may permit more than the association allows.

 

11. A landowner sold property to a buyer and retained a path on the land to access a public road. The buyer blocked the path, arguing no easement was recorded.

Which easement is most likely enforceable?

  1. Easement by prescription
  2. Easement by necessity
  3. Easement by estoppel
  4. Easement implied from prior use

Correct Answer: D

Explanation: When a landowner conveys part of land and previously used a portion for access, an easement may be implied if the use was continuous, apparent, and reasonably necessary.

Why the other options are incorrect
A requires hostile use over time.
B applies only if the property is landlocked.
C requires detrimental reliance on permission.

12.A buyer entered into a contract to purchase land. Before closing, the seller died.

Who is entitled to the proceeds from the sale?

  1. Seller’s devisee under the will
  2. Seller’s heirs
  3. Seller’s estate under equitable conversion
  4. The buyer, regardless of the estate’s wishes

Correct Answer: C

Explanation: Under equitable conversion, the seller’s real property interest becomes personal property upon contract formation. The proceeds go to the estate as personalty.

Why the other options are incorrect
A and B receive real property unless converted.
D buyer must close to obtain ownership.

13. A grantor conveyed land "to Dana, but if liquor is ever sold on the property, then to Jamie."

What future interest does Jamie hold?

  1. Possibility of reverter
  2. Contingent remainder
  3. Executory interest
  4. Vested remainder subject to divestment

Correct Answer: C

Explanation: Jamie’s interest cuts short Dana’s estate upon condition. Because it divests before natural expiration, it’s an executory interest.

Why the other options are incorrect
A is held by grantors, not third parties.
B requires natural termination and condition precedent.
D follows a vested interest — Dana’s estate isn’t vested in Jamie.

14.A buyer discovers after closing that a third party holds a valid easement on the property, reducing its utility. The buyer sues for breach.

What remedy is most appropriate?

  1. Rescission based on failure to disclose
  2. Specific performance with abatement
  3. Damages for unmarketable title
  4. Injunction against the easement holder

Correct Answer: C

Explanation: An undisclosed easement burdens title and may render it unmarketable. The buyer can sue for damages resulting from the defect.

Why the other options are incorrect
A is unavailable post-closing.
B may apply if buyer had knowledge.
D is improper — easement is valid.

15. A property owner allowed a friend to use his shed for storage. After five years, the friend claimed ownership by adverse possession.

What is the biggest obstacle?

  1. Lack of color of title
  2. Absence of continuous use
  3. Permission defeats hostility
  4. The five-year period is too short

Correct Answer: C

Explanation: Adverse possession requires hostile use. If the owner permitted access, the possession is not hostile and claim fails.

Why the other options are incorrect
A is helpful but not essential.
B facts show continued use.
D depends on jurisdiction — often sufficient.

16.A lender recorded its mortgage one day after closing. Later, the borrower gave a second mortgage to another lender, who recorded immediately.

Which lender has priority?

  1. The first lender due to its earlier loan
  2. The second lender due to earlier recording
  3. The first lender under purchase money priority
  4. Neither, because recording was improper

Correct Answer: C

Explanation: Purchase money mortgages usually have priority over other interests even if recorded later, assuming no intervening bona fide purchasers.

Why the other options are incorrect
A is wrong if recordation is delayed.
B applies unless purchase money status alters priority.
D recording delay alone isn’t improper.

17. A buyer receives a deed signed by the seller but never formally delivered. What is the status of title?

  1. Title passes automatically upon signature
  2. Title does not pass because delivery is essential
  3. Buyer holds equitable title only
  4. Title passes if the buyer accepts by conduct

Correct Answer: B

Explanation: Valid delivery of a deed is required to transfer legal title. Mere signing is insufficient without intent and transfer.

Why the other options are incorrect
A ignores delivery requirement.
C equitable title arises under contracts, not deeds.
D conduct may help prove delivery but isn’t substitute.

18. A tenant leased commercial property for five years and sold its leasehold to a third party. The landlord sued, citing a restriction on assignment.

How should the court rule?

  1. For the tenant if assignment was customary
  2. For the landlord if the lease barred transfer
  3. For the third party, who now holds privity
  4. For the landlord only if consent was requested

Correct Answer: B

Explanation: Lease restrictions on assignment are enforceable. Transfer without compliance constitutes breach.

Why the other options are incorrect
A custom doesn’t override contract terms.
C privity doesn’t negate restriction.
D lack of request isn’t decisive — breach occurred.

19. A grantor conveyed land by a warranty deed. After closing, it was discovered that a portion of the property was encumbered by an undisclosed lien.

What covenant was breached?

  1. Covenant of quiet enjoyment
  2. Covenant of further assurances
  3. Covenant against encumbrances
  4. Covenant of seisin

Correct Answer: C

Explanation: The covenant against encumbrances guarantees no hidden liens or easements. Breach occurs if such interests exist at conveyance.

Why the other options are incorrect
A relates to possession interference.
B obligates future correction but isn’t breached yet.
D affirms grantor’s title, not absence of liens.

20. A seller gave a buyer an option to purchase land within six months for a set price. Two months later, the seller attempted to revoke.

Is the revocation effective?

  1. Yes, because options are revocable until exercised
  2. No, if consideration was paid for the option
  3. Yes, unless the buyer relied on the option
  4. No, if the buyer notified intent to purchase

Correct Answer: B

Explanation: A paid option is irrevocable for the specified term. Revocation breaches the contract and is ineffective.

Why the other options are incorrect
A misstates option contract rules.
C reliance may support enforcement, but consideration is stronger.
D notice alone doesn’t confirm acceptance.

 

21. A landowner died, leaving property in a will to her nephew. Before the will was probated, the land was transferred to a third party under a forged deed.

What is the best protection for the third party?

  1. Good faith purchase
  2. Recording statute
  3. Title insurance
  4. None, because forged deeds convey nothing

Correct Answer: D

Explanation: A forged deed is void and conveys no title. Even a good faith purchaser who records cannot acquire valid ownership through forgery.

Why the other options are incorrect
A does not protect against forgery.
B applies only to valid instruments.
C may cover loss but doesn’t validate title.

22. A seller conveyed land to a buyer under a quitclaim deed. The buyer later discovered an undisclosed lien.

Can the buyer sue for breach?

  1. Yes, under covenant against encumbrances
  2. No, because quitclaim deeds contain no warranties
  3. Yes, if marketability was promised in the contract
  4. No, unless the buyer insured title

Correct Answer: B

Explanation: A quitclaim deed transfers whatever interest the grantor holds without warranties. The buyer assumes risk of undisclosed defects.

Why the other options are incorrect
A applies to warranty deeds.
C relates to contract phase, not deed remedy.
D insurance is separate and optional.

23. A mortgagor defaulted, and the mortgagee filed for foreclosure. Before judgment, the mortgagor tendered full payment of the outstanding debt.

What right did the mortgagor exercise?

  1. Right of redemption
  2. Right of reinstatement
  3. Statutory redemption
  4. Equity of redemption

Correct Answer: D

Explanation: Equity of redemption allows the mortgagor to pay off the debt before foreclosure to avoid losing the property.

Why the other options are incorrect
A refers to post-foreclosure rights.
B applies only in some jurisdictions.
C triggers after foreclosure sale under statute.

24. A buyer purchases land from a seller who earlier conveyed the same property to another party who failed to record. The buyer paid value and had no notice.

Which recording act protects the buyer?

  1. Notice
  2. Race
  3. Race-notice
  4. None, because the first grantee has priority

Correct Answer: A

Explanation: Under notice statutes, a subsequent bona fide purchaser without notice prevails over earlier unrecorded interests.

Why the other options are incorrect
B favors whoever records first regardless of notice.
C requires both lack of notice and first to record.
D ignores the statute’s purpose to protect BFPs.

25. A person paid taxes and openly used a parcel of land for 15 years, believing it was abandoned. The rightful owner did nothing during that time.

Which element of adverse possession is most crucial here?

  1. Continuous possession
  2. Hostile possession
  3. Claim of right
  4. Exclusive possession

Correct Answer: B

Explanation: Hostility requires possession inconsistent with owner’s rights, without permission. It's often inferred from objective use.

Why the other options are incorrect
A is satisfied by the 15 years of use.
C is sometimes treated as part of hostility.
D is also met, but hostility governs legal claim.

26. A borrower executed a deed of trust to a lender and later defaulted. The trustee initiated nonjudicial foreclosure according to state law.

Which mortgage theory applies?

  1. Title theory
  2. Lien theory
  3. Intermediate theory
  4. Trust deed theory

Correct Answer: D

Explanation: A deed of trust involves a third-party trustee and permits nonjudicial foreclosure. It is a distinct security instrument used in many states.

Why the other options are incorrect
A and B relate to mortgages, not trust deeds.
C combines features of title and lien theories but not relevant here.

27. A tenant on a month-to-month lease was evicted without notice. The landlord claimed the lease was terminable at will.

Is the eviction proper?

  1. Yes, month-to-month tenants may be removed anytime
  2. No, proper notice is required before termination
  3. Yes, if the lease was oral
  4. No, unless the tenant breached the lease

Correct Answer: B

Explanation: Even periodic tenants must be given statutory notice before termination, typically equal to the rental period.

Why the other options are incorrect
A ignores legal requirement for notice.
C oral leases still require notice.
D breach may allow quicker removal but not without notice.

28. A grantor conveyed land to “Sam and Pat,” with no further language in the deed.

What estate do Sam and Pat hold?

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

Correct Answer: C

Explanation: In absence of survivorship language, the default estate between multiple grantees is tenancy in common.

Why the other options are incorrect
A requires the grantees to be married.
B needs clear language of survivorship.
D not indicated by the conveyance.

29. A mortgagor conveyed the property to a buyer who agreed to take subject to the mortgage. Later, the buyer defaulted, and the lender sued the original mortgagor.

What is the result?

  1. The buyer is liable for the debt
  2. The lender cannot foreclose
  3. The mortgagor remains personally liable
  4. The mortgage is discharged upon transfer

Correct Answer: C

Explanation: Taking property subject to a mortgage doesn’t relieve the original mortgagor from liability. The lender can sue on the note.

Why the other options are incorrect
A buyer isn't personally liable unless assumption is explicit.
B lender retains foreclosure rights.
D transfer does not discharge secured debt.

30. A will devised “my farm to Casey for life, then to Jordan if Jordan survives Casey.” Jordan predeceased Casey.

What interest is created in Jordan?

  1. Vested remainder subject to divestment
  2. Contingent remainder
  3. Executory interest
  4. Reversion to the testator’s heirs

Correct Answer: B

Explanation: Jordan’s remainder was conditioned on survival. Because it was uncertain, it was contingent and failed upon predeceasing Casey.

Why the other options are incorrect
A requires a vested interest with condition subsequent.
C applies when interest cuts short prior estate.
D applies if no remainder remains not clearly shown here.

 

31. A homeowner gave a deed to her daughter but held onto it and never told anyone. After her death, the daughter claimed title.

Was there a valid conveyance?

  1. Yes, because delivery is presumed upon death
  2. No, because physical transfer is required for delivery
  3. Yes, because the deed was properly executed
  4. No, because there was no intent to deliver

Correct Answer: D

Explanation: Delivery requires present intent to transfer ownership. Mere execution without intent or notification doesn’t pass title.

Why the other options are incorrect
A misstates the law, death doesn’t create delivery.
B transfer is one method, but intent is the key element.
C execution alone does not complete delivery.

32. A deed stated, “to Sam, but if the property is ever used for retail purposes, then to Lee.”

What type of estate does Sam hold?

  1. Fee simple determinable
  2. Fee simple subject to condition subsequent
  3. Fee simple subject to executory limitation
  4. Life estate subject to divestment

Correct Answer: C

Explanation: Sam’s estate ends upon a triggering event, and the future interest goes to a third party, making it subject to executory limitation. 

Why the other options are incorrect
A ends automatically and reverts to grantor.
B grantor must act to reclaim.
D life estate isn’t referenced.

33. A property owner built a fence partially on a neighbor’s land. The neighbor didn’t object for 12 years. The jurisdiction’s statutory period for adverse possession is 10 years.

Can the owner claim title to the encroached portion?

  1. No, because the possession was not exclusive
  2. Yes, because all elements of adverse possession were met
  3. No, unless the fence included signage asserting ownership
  4. Yes, if the neighbor gave written consent

Correct Answer: B

Explanation: Continuous, open, and exclusive possession for the statutory period can result in title by adverse possession even with minor encroachment.

Why the other options are incorrect
A exclusive use of the fenced area suffices.
C signage is unnecessary if use is obvious.
D permission defeats hostility, not supports claim.

34. A lender accepted a deed in lieu of foreclosure from a defaulting borrower. Two days later, a junior lienholder demanded payment.

What effect does the deed in lieu have on junior liens?

  1. It extinguishes all junior liens automatically
  2. It transfers title subject to existing liens
  3. It gives the lender personal liability for those liens
  4. It cancels the borrower’s debt but not encumbrances

Correct Answer: B

Explanation: A deed in lieu transfers title to the lender but does not eliminate junior liens. They remain unless expressly released.

Why the other options are incorrect
A is true only after foreclosure sale.
C lender isn’t liable for borrower’s debts.
D debt may be settled, but liens persist.

35. A land contract required the buyer to pay monthly installments with title conveyed after final payment. The buyer defaulted midway.

What remedy is available to the seller?

  1. Foreclosure and sale
  2. Return of possession without judicial process
  3. Specific performance
  4. Retention of payments without obligation to convey

Correct Answer: A

Explanation: Sellers in installment land contracts may use foreclosure procedures similar to mortgages if buyer defaults.

Why the other options are incorrect
B self-help eviction is often prohibited.
C unlikely if buyer defaulted.
D courts may limit retention without relief.

36. An owner conveyed land to her sister by deed but kept it unrecorded. Years later, she sold the same land to a stranger who recorded immediately. The jurisdiction has a race-notice statute.

Who has valid title?

  1. The sister, as the first grantee
  2. The stranger, as a bona fide purchaser who recorded first
  3. Neither, because of conflicting claims
  4. The sister, if she physically possessed the land

Correct Answer: B

Explanation: Under race-notice statutes, a subsequent purchaser who lacks notice and records first prevails over unrecorded prior interests.

Why the other options are incorrect
A doesn’t protect against later BFPs.
C law resolves the conflict in favor of the BFP.
D possession may give notice but isn’t detailed here.

37. A borrower transferred property to a buyer who assumed the mortgage. The buyer later defaulted, and the lender sued both parties.

What is the outcome?

  1. Only the buyer is liable
  2. Only the original borrower is liable
  3. Both parties are jointly liable
  4. Neither is liable without express consent from lender

Correct Answer: C

Explanation: When the buyer assumes the mortgage, both buyer and original borrower may be held liable unless the lender releases one.

Why the other options are incorrect
A ignores prior obligation.
B assumption creates direct liability for buyer.
D consent is not required for liability attachment.

38. In a dispute over boundary lines, one neighbor offered testimony that she had always mowed and maintained the disputed area. The other neighbor provided aerial photos showing use.

What type of evidence is this?

  1. Hearsay
  2. Real evidence
  3. Demonstrative evidence
  4. Direct evidence

Correct Answer: C

Explanation: Photos and illustrative materials that support witness testimony are demonstrative evidence, not part of the actual land.

Why the other options are incorrect
A applies to verbal statements, not images.
B requires the physical item in question.
D refers to firsthand observation of the act.

39. A seller conveyed land by warranty deed but failed to disclose a recorded easement. The buyer sued.

Which covenant has been breached?

  1. Covenant of seisin
  2. Covenant of further assurances
  3. Covenant against encumbrances
  4. Covenant of quiet enjoyment

Correct Answer: C

Explanation: Recorded easements constitute encumbrances. A warranty deed assures none exist unless disclosed.

Why the other options are incorrect
A relates to ownership of title.
B covers future actions to perfect title.
D concerns interference with possession.

40. A person drafted a deed conveying property “to Alex and Taylor as joint tenants with right of survivorship.” Later, Alex conveyed her interest to Casey.

What is the ownership status?

  1. Casey and Taylor hold as joint tenants
  2. Taylor owns the entire property
  3. Casey and Taylor hold as tenants in common
  4. The joint tenancy remains unaffected

Correct Answer: C

Explanation: A transfer by one joint tenant severs the joint tenancy. Casey and Taylor now own equal shares as tenants in common.

Why the other options are incorrect
A joint tenancy requires unbroken unity.
B Taylor’s interest remains unchanged.
D severance ends survivorship rights.

41. A landowner installed ceiling fans and custom-built shelving in a rental house. After the lease ended, the landowner removed these items before the new tenant moved in.

Which statement is most accurate?

  1. The items are fixtures and must remain
  2. The items are trade fixtures and are removable
  3. The items may be removed unless permanent damage occurs
  4. The items were personal property and never became part of the realty

Correct Answer: A

Explanation: Fixtures are items attached to the property with intent to permanently improve it. Ceiling fans and custom shelving likely qualify and must remain with the property.

Why the other options are incorrect
B trade fixtures apply only to commercial tenants
C removal may still be prohibited depending on intent
D physical attachment and intended permanence are key factors

42. A city rezoned a residential block for commercial use. A homeowner within the block objected, claiming her house would lose value.

Is the rezoning valid?

  1. Yes, if it serves a legitimate public purpose
  2. No, because it reduces private property value
  3. Yes, only if compensation is paid
  4. No, unless all owners agree

Correct Answer: A

Explanation: Governments may enact zoning changes if they serve a legitimate public interest and comply with procedural requirements. Economic impact alone does not invalidate zoning.

Why the other options are incorrect
B personal financial loss does not defeat valid zoning
C compensation is generally not required unless a taking occurs
D unanimous consent is never required for zoning changes

43. A trust created a future interest "to my grandchildren who reach age 30."

What rule may prevent this interest from vesting?

  1. Rule against perpetuities
  2. Rule against alienation
  3. Rule of convenience
  4. Rule of merger

Correct Answer: A

Explanation: A gift conditioned on reaching age 30 may violate the Rule Against Perpetuities if not guaranteed to vest within lives in being plus 21 years.

Why the other options are incorrect
B concerns transferability, not vesting
C closes class gifts prematurely but does not void interests
D combines estates, not applies to contingent interests

44. A seller and buyer agreed in writing to sell land. The buyer requested a delay due to financing issues and failed to close by the agreed date. The seller sued for breach.

What factor most affects the outcome?

  1. Whether the buyer paid earnest money
  2. Whether time was made of the essence in the contract
  3. Whether market conditions changed
  4. Whether title was marketable

Correct Answer: B

Explanation: Unless the contract specifies that time is of the essence, minor delays may not constitute breach. Express language determines enforceability.

Why the other options are incorrect
A earnest money shows seriousness but not breach
C market conditions do not excuse performance
D title issues matter only if buyer attempted to close

45. A neighbor regularly crossed another’s land to reach a fishing spot. After years, the landowner installed a fence. The neighbor claimed a right of way.

Which interest may support the neighbor's claim?

  1. Profit
  2. License
  3. Easement by necessity
  4. Easement by prescription

Correct Answer: D

Explanation: Open, continuous, and adverse use of land for the statutory period may establish an easement by prescription, allowing continued access.

Why the other options are incorrect
A profits involve resource removal, not passage
B licenses are revocable and do not vest rights
C necessity requires landlocked property

46. A homeowner failed to pay property taxes. The county obtained a lien and eventually sold the property at auction to a third party.

What is the status of the third party's title?

  1. Void unless the homeowner received notice
  2. Valid unless the sale violated statutory procedures
  3. Invalid unless approved by a court
  4. Effective only if the buyer paid fair market value

Correct Answer: B

Explanation: Tax foreclosure sales transfer valid title if statutory procedures, including notice and timing, are properly followed.

Why the other options are incorrect
A notice is required, but other errors may also affect validity
C judicial approval is not always necessary
D price affects surplus recovery but not title validity

47. Two companies agreed that one would have a permanent right to use a portion of the other's land for loading trucks. The agreement was recorded.

What interest was created?

  1. License
  2. Profit
  3. Easement
  4. Covenant

Correct Answer: C

Explanation: A recorded, permanent right to use land for specific access creates an easement. It may run with the land and bind successors.

Why the other options are incorrect
A licenses are temporary and non-transferable
B profits involve extraction of resources
D covenants restrict use, not grant access

48. A buyer received a general warranty deed. After moving in, a third party claimed ownership based on an earlier unrecorded deed.

Which warranty protects the buyer?

  1. Covenant of seisin
  2. Covenant against encumbrances
  3. Covenant of quiet enjoyment
  4. Covenant of further assurances

Correct Answer: C

Explanation: The covenant of quiet enjoyment protects against third party claims to title. It assures that possession will not be disturbed.

Why the other options are incorrect
A concerns ownership of the estate described
B addresses liens and encumbrances
D obligates future action to clear title issues

49. A property owner gave written permission to a neighbor to use a private driveway. After 20 years of uninterrupted use, the owner revoked permission.

Can the neighbor claim continued access?

  1. No, because a license is always revocable
  2. Yes, as an easement by prescription
  3. No, unless a deed was recorded
  4. Yes, under easement by estoppel

Correct Answer: D

Explanation: When a person relies on a granted use for a long period, and the owner knows of and permits the reliance, courts may enforce access through estoppel.

Why the other options are incorrect
A courts may deny revocation based on reliance
B permissive use is not adverse
C recording helps but is not required for estoppel

50. A landlord leased a commercial unit. The lease prohibited assignment. The tenant assigned the lease to another business anyway.

What is the most accurate statement?

  1. The assignment is void
  2. The assignment is valid but breaches the lease
  3. The assignment is enforceable only with landlord consent
  4. The landlord must accept the new tenant

Correct Answer: B

Explanation: A lease restriction against assignment does not void the transfer but does create a breach, giving the landlord remedies.

Why the other options are incorrect
A assignments remain effective despite breach
C consent may be required but isn’t obtained here
D acceptance is not mandatory following breach