JURI 550Quiz: Property Purchase Transaction: JURI550: Property Law (D01)

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 1 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 Quiz: Property Purchase Transaction Due Nov 26 at 11:59pm Points 125 Questions 25 Time Limit 60 Minutes Instructions Attempt History Attempt Time Score LATEST Attempt 1 20 minutes 85 out of 125  Correct answers are hidden. Score for this quiz: 85 out of 125 Submitted Nov 27 at 10:32pm This attempt took 20 minutes. The quiz: Covers the Learn material from Module 5: Week 5 . Contains 25 multiple-choice questions. Is limited to 1 hour . Allows 1 attempt . Is worth 125 points . Students are permitted to take the quiz with an open book and open notes. Submit this assignment by 11:59 p.m. (ET) on Sunday of Module 5: Week 5. 5 / 5 pts Question 1 Online Residen Sign In Request Info Apply Now Visit Us Create Guest Account

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 2 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 When a buyer-borrower executes the promissory note and the mortgage instrument for a $100,000 loan, most courts will make which of the following conclusions about the formation of the loan agreement? A mortgage is a conveyance of an interest in real property as security for performance of an obligation, and is binding when recorded at the public land records. A mortgage is a conveyance of an interest in real property as security for performance of an obligation, and is legally enforceable even without the promissory note. A mortgage is a conveyance of an interest in real property as security for performance of an obligation, and is binding when delivered to the lender. A mortgage is a conveyance of an interest in real property as security for performance of an obligation, and is binding when the lender disburses the funds to the borrower. 5 / 5 pts Question 2

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 4 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 the right of restitution and the right of redemption by paying the full amount of the loan. the right to reinstate the loan by paying the amount that is in default and the right of forfeiture. the right to reinstate the loan by paying the amount that is in default and the right of redemption by paying the full amount of the loan. the right of restitution and the right of forfeiture. 5 / 5 pts Question 4 During the escrow period when the parties are preparing to close the transaction, the seller will be required to disclose the condition of the property in most transactions. In most states the seller will be held to which disclosure standard? Most states require the seller of residential and commercial property to disclose known latent material defects regardless of whether they are material to the buyer or whether a reasonable person would consider them important.

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 5 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 Most states require the seller of residential property to disclose those known latent defects that are material to the particular buyer. Most states require the seller of residential property to disclose those known latent material defects a reasonable person would consider important to the purchase decision or that have a signiVcant effect on the value of the property. Most states require the seller of residential property to follow the caveat emptor rule. 0 / 5 pts Question 5 Incorrect Incorrect Which of the following lists identiVes the minimal set of elements that must be satisVed before the deed is effective? The deed is in a writing of conveyance that includes the names of the parties, the property description, the price, the title warranties, and the grantor’s signature. The deed is in a writing of conveyance that includes the names of the parties, the property description, the consideration, the grantor’s acknowledged signature, and it is recorded.

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 7 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 5 / 5 pts Question 7 Under the common law majority rule, which of the following is the most accurate statement? At the execution of the sale contract, the seller became the legal owner of the purchase money and the buyer became the legal owner of the property. At the execution of the sale contract, the seller retained the right to the purchase money and the buyer became the equitable owner of the property. After the execution of the sale contract but before the close of the transaction, the buyer could cancel the contract if the property was destroyed only if the equitable conversion doctrine applies to the transaction. After the execution of the sale contract but before the close of the transaction, the equitable conversion doctrine would be controlling over the contract’s risk of loss provision in the event the property was destroyed. 5 / 5 pts Question 8

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 8 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 At the closing of the transaction, the purpose of recording the deed is: to protect the buyer (now owner) from subsequent claims to his title. to make the deed effective so that the buyer (now owner) actually obtains title. to formally mark the closing of the transaction. to formally mark the closing of the transaction and to give effect to the covenants of title. 5 / 5 pts Question 9 A contract for the sale of real estate is enforceable in which of the following situations: when, without a writing, the would-be buyer and seller orally agree on the essential terms of the transaction, and there are no other facts.

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 10 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 0 / 5 pts Question 11 Incorrect Incorrect Title insurance is the dominant method of title protection in the United States. Which of the following statements accurately describes the protection afforded by title insurance? Title insurance companies are strictly liable for covered title defects. Title insurance moving to a consistent system of title protection that is nationwide. Title insurance provides greater protection for the buyer than an attorney’s opinion of title. All of the above. Only a. and b. 5 / 5 pts Question 12 Among the four basic stages of a real property purchase-sale transaction, the starting point is “locating the buyer”. Which of the following documents can assist the seller in locating a buyer?

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 11 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 The open listing agreement between the seller and a real estate broker. The exclusive agency listing agreement between the seller and a real estate broker. The exclusive right to sell listing agreement between the seller and a real estate broker. Any of the preceding listing agreements. 5 / 5 pts Question 13 As the buyer and seller are “preparing for the closing”, they will be most concerned with: approving or disapproving the conditions of title, the property’s condition, and the buyer’s Vnancing. negotiating the purchase price. determining whether the transaction will be completed if the house is destroyed.

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 13 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 a writing that includes an offer, an acceptance, consideration, and other material terms. a writing that includes the identity of the parties, the purchase price, the property description, an expression of the intent to buy and sell the property, and other material terms. a writing that includes the identity of the parties, the purchase price, the property description, buyer’s amount of partial payment or possession of the property, and other material terms. a writing that includes the identity of the parties, the purchase price, the property description, buyer’s amount of partial payment or improvement to the property, and other material terms. 5 / 5 pts Question 16 During the escrow period when the parties are preparing to close the transaction, both buyer and seller are interested in determining as soon as possible whether the buyer can purchase the property with cash or Vnance the purchase with a loan. If the buyer will Vnance the purchase, the documents that are essential for the buyer to satisfy the purchase-sale contract and to close the transaction are:

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 14 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 the lender’s loan commitment, the promissory note signed by the borrower, and the mortgage signed by the borrower. the lender’s loan commitment only, which satisVes the Vnancing condition in the purchase-sale contract and thus assures the seller that the buyer is a qualiVed borrower. the lender’s loan commitment (for the reason stated above) and the promissory note signed by the borrower, which secures the lender because the buyer-borrower has agreed to re-pay the loan. only the mortgage signed by the borrower, because the lender is protected by this security instrument. 0 / 5 pts Question 17 Incorrect Incorrect Which of the following statements is true? The elements that make a deed valid means the deed is ready to be recorded. The only way a deed gives notice is for it to be recorded.

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 16 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 A seller and buyer of real estate have the option to transfer title to the subject property to the buyer using one of the types of deeds described below. Which of the following statements is accurate? None of the following. A quitclaim deed provides six title covenants. A general warranty deed provides six title covenants that are applied to defects of title created by the seller but not by a remote grantor. A special warranty deed provides six title covenants in all instances, even when the title defect was created by a remote grantor. 0 / 5 pts Question 20 Incorrect Incorrect During the escrow period when the parties are preparing to close the transaction, the common law rule will impose the risk of property damage or loss on the buyer unless the purchase-sale contract states otherwise. This is known as: a breach of warranty under one of the covenants of title. the caveat emptor rule.

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 17 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 the implied warranty doctrine. the equitable conversion doctrine. 5 / 5 pts Question 21 A vendee can negotiate a land installment contract to protect him from some of the vendor’s preferred terms. However, a vendee must rely on courts in some jurisdictions to interpret which of the following contract terms to protect him? The installment contract’s provision about the large balloon payment at the end of the term. The installment contract’s provision about the number of years until completion of the installment contract. The installment contract’s provision about the vendor’s retention of the deed until the end of the contract term. The installment contract’s provision about the remedy of forfeiture after the vendee’s breach will be treated as a mortgage.

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 19 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 Clarify the quality of title that must be transferred at closing of the transaction. All of the above. 5 / 5 pts Question 24 From the perspective of the lender, the beneVt of a mortgage is that the lender is contractually entitled to pursue a judicial foreclosure or a non-judicial foreclosure if the borrower defaults on the loan. True False 5 / 5 pts Question 25 When owner Olivia sells her Goldacre parcel to Anthony at the market price and then to Boyd for an even higher price, Anthony will prevail in a suit against Boyd so long as the Olivia-to- Anthony deed was recorded before Boyd made his purchase. True

12/12/23, 5 : 30 PM Quiz: Property Purchase Transaction: JURI550: Property Law (D01) Page 20 of 20 https://canvas.liberty.edu/courses/515933/quizzes/2649122 ? module_item_id=60008026 False Quiz Score: 85 out of 125 This quiz score has been manually adjusted by -10.0 points.