Real Estate Law Review and Study Guide for Final Exam
Chapter 1: REAL ESTATE PRACTICE
easements estate for years
fixtures community property
license concurrent ownership
personal property joint tenants
real property partition
riparian rights tenancy by the entireties
estate in fee tail tenants in common
fee simple absolute unity of person
fee simple unity of possession
determinable unity of purpose or interest
fee simple subject to a unity of time
condition subsequent unity of title
freehold estate condominium
less-than-freehold general partnerships
life estate joint stock association
per autre vie joint venture
reversion limited partnerships
estate at sufferance real estate investment trusts
estate at will
1. How is real property distinguishable from personal property?
2. Define what a fixture is and how it differs from personal property.
3. Discuss the nature of less-than-freehold estates, including the differences in its various forms.
4. What is “tenancy by the entireties”?
5. Give and define various examples of an easement.
6. Does Concurrent ownership require unity of time, title, interest and possession? Why or Why
7. What is the role of the paralegal in a real estate transaction?
8. What estate conveys only partial ownership? Explain.
9. Name and discuss which estate is characterized by a wrongful possession?
10. A reversion exists in what type of estate? How does this differ from other estates?
Chapter 2: PRELIMINARY ACTIVITIES FOR REAL ESTATE PRACTICE
real estate agents exclusive agency
exclusive agency agreement
exclusive listing exclusive right to sell
flat fee listing listing
net listing open listing
caveat emptor caveat misrepresenter
caveat venditor implied warranty of habitability
latent defects patent defects
property disclosure statement disclosure
fiduciary duty good faith
1. What are the functions of a real estate agent and broker? How do their functions differ?
2. Discuss the various buyer agency relationships.
3. What is the purpose of an Exclusive Listing Agreement?
4. Does an Open Listing differ from a Multiple Listing Service? Why or why not?
5. What is the difference between an Exclusive Agency Agreement and an Exclusive Listing
6. What is the doctrine of Caveat Emptor?
7. What are the five types of misrepresentations that have been recognized by the courts?
8. Discuss an implied warranty of habitability.
9. What is the function of a property disclosure statement?
10. What is a fiduciary duty?
Chapter 3: AGREEMENTS OF SALE
release agreements or contracts of sale
contract Statute of Frauds
flood insurance homeowner’s insurance
legal description prorations
risk of loss time is of the essence
title insurance transfer taxes
zoning classification agreement to rescind
cancellation land installment contract
option recovery of possession
1. The Statute of Frauds requires writings in transactions involving the transfer of real
property. Prove true or false.
2. In a standard Agreement of Sale three (3) parties have an interest in the content of the
agreement. Name them.
3. When interpreting a Sales Agreement the parties must be attentive to specific time
lines. The broad standard "time is of the essence" controls the party's conduct. Give
four (4) examples of timely action under most real estate contracts.
4. What types of disagreements typically result from the interpretation of real estate
5. How are changes normally made to an executed Agreement of Sale?
6. Under what circumstances is the language “time is of the essence” normally seen?
7. What is the difference between a land installment contract and an option contract?
8. Define the terms cancellation, rescission and release as they relate to agreements of
9. What clauses must exist for an agreement of sale to be valid and enforceable?
10. Name three clauses that are not mandatory and only need to be included under certain
Chapter 4: CONDITIONS, CONTINGENCIES AND OTHER QUALIFICATIONS
addendum Comprehensive Environmental
condition Response, Compensation, and
condition Liability Act
contingency condition precedent
hazardous material subsequent
major defect endorsement
contingency home inspection
pest infestation mortgage
rider notice to terminate
underground storage tank radon
wipeout right of first refusal
zoning variance Urea Formaldehyde Foam Insulation
1. A conditional contract, or a contract with a contingency, is unenforceable until the condition
or contingency is met or removed. True or False? Explain.
2. Name three of the more common contingencies in a real estate contract.
3. If buyers cannot get mortgage financing as outlined in the mortgage/financing clause of a
contract, what are the possible results?
4. Explain the difference between a condition and a contingency.
5. What is the purpose of an addendum?
6. In a home inspection addendum, what clauses are normally seen?
7. What hazardous materials are commonly mentioned in contingency language?
8. Contingency language never contains remedial language. Prove true or false.
9. What is a “Right of First Refusal?”
10. Under what condition is a notice to terminate utilized?
Chapter 5: TITLE
lien owner’s policy
quitclaim deed sheriff’s deed
special warranty deed title
title company title examinations
title insurance abstract of title
free and clear impediments
marketable title title defects
conveyance search covenant
restriction Russell system
encumbrance search judgment
mechanic’s lien affidavit of title
binder report of title
title commitment title insurance policy
1. Prove this statement True or False: Title insurance runs with the land upon conveyance.
2. Give three examples of impediments to title.
3. How could the three examples of impediments to title from question 2 be rectified?
4. How does title insurance assure the buyer of a clear and protected exchange?
5. What are some of the expenses related to assuring good title.
6. When abstracting title, the paralegal can begin with varied information. Beside the name of
the grantor or grantee, how can the chain of title be identified?
7. What are five records searched in the abstraction of title?
8. Explain the difference between a conveyance search and an encumbrance search.
9. Outline the process for obtaining title insurance.
10. What system of recording is used in your area? Briefly explain how mortgage, judgment and
deed books are organized.
Chapter 6: DEEDS
Statute of Frauds covenant
covenant of further assurances covenant of Seisin
Covenant of Title Covenant of Warranty
express covenant future covenant
implied covenant perfecting the title
present covenant Quiet Enjoyment
Right to Convey acknowledgment
encumbrance clause habendum clause
metes and bounds nominal consideration
testimonium clause administrator
bargain & sale deed corporate deed
executor general warranty deed
guardian deed limited warranty deed
quitclaim deed sheriff’s deed
special warranty deed trustee’s deed
hereditaments mining rights
quiet enjoyment restrictive covenant
riparian rights single family covenant
1. Prove this statement true or false: The Statute of Frauds must be considered when drafting a
2. Are deeds are the only acceptable way to legally transfer a property? Why or why not.
3. Seller has no obligation to present clear and free title in a general warranty deed. Is this
statement true? Explain.
4. What clauses must a deed minimally contain?
5. What is the purpose of a quitclaim deed?
6. Explain the difference between a general warranty and a limited warranty deed.
7. There are several special deed types. Name three and explain their purpose.
8. Define the term “hereditament.”
9. What deed clause would be included to address natural resources that exist under the surface
of the earth?
10. What is the purpose of the covenant of quiet enjoyment? Is it included in documents other
Chapter 7: MORTGAGES
deed of trust mortgage
mortgage note mortgagee
mortgagor adjustable rate mortgage
balloon mortgage cap
due-on-transfer rider Federal Housing Administration (FHA)
fixed rate mortgage Graduated Payment Mortgage (GPM)
prime rate of interest Purchase Money Mortgage (PMM)
reverse mortgages Veterans’ Administration (VA)
appraisal borrower authorization
fee disclosure good faith estimate
1. Explain the basic features of a balloon mortgage.
2. What government document estimates the costs of a loan?
3. What is the purpose of an acceleration clause?
4. Explain the difference between a mortgage and a note.
5. In addition to credit rating, what other factors are considered by a lender when deciding to
approve/disapprove a loan?
6. What various types of governmental mortgage programs exist?
7. What type of mortgage uses a Due on Transfer Rider?
8. Name three government notification documents that are used during the application process?
9. What is the purpose of a mortgage commitment?
10. What is mortgage insurance?
Chapter 8: CLOSING AND SETTLEMENT
Real Estate Settlement and Procedures Act (RESPA)
truth in lending disclosure
1. At settlement, the paralegal is responsible for a host of documents, mortgage and financing
forms. List five (5) examples.
2. What are some of the tasks that are the responsibility of the paralegal at closing?
3. What types of entries on a settlement sheet are pro-rated?
4. What circumstance may call for an escrow deposit at closing?
5. During closing and settlement process, the paralegal must be certain that bills to
governmental authorities are fully paid and properly pro-rated. What are some costs that are
normally equally shared by the Buyer and Seller?
6. What are the types of charges a Seller can expect to pay which are listed on the settlement
7. What types of government required documentation must be signed at closing?
8. What is the difference between a RESPA and Non-RESPA settlement sheet?
9. What is the recordation procedure and costs in your area?
10. What types of funds are normally escrowed?
Chapter 9: LEASES IN THE REAL ESTATE TRANSACTION
forcible entry and detainer holdover
plain English real estate management agreement
1. What is the definition of a lease?
2. What are the needed elements in a lease?
3. Why are plain English requirements applicable to leases?
4. Why would a person enter into a lease with an option to purchase?
5. If buyers in a real estate transaction enter into an early possession agreement, what additional
documentation should be drafted to protect the seller’s interests?
6. What is the purpose of a real estate management agreement?
7. Is a notice document required before a landlord begins any other remedial procedure?
8. What must a general eviction complaint include?
9. What are common remedies used by a landlord to recover his or her property?
10. What is forcible entry and detainer?
Chapter 10: RESOLUTION OF REAL ESTATE DISPUTES
alternative dispute resolution arbitration
binding breach of contract
demand for arbitration mediation
specific performance submission to arbitration
1. What is the purpose of ADR?
2. What is the difference between mediation and arbitration?
3. Explain the difference between binding and non-binding arbitration.
4. Are there any public arbitration programs? What kind are they and who orders them? Find
out if your state has a program such as this.
5. What is the process during an arbitration hearing?
6. Under what circumstances is “binding” arbitration not binding?
7. What are the advantages of mediation?
8. What is the difference between a Demand for Arbitration and a Submission to Dispute
9. What actions in law are available for real estate disputes?
10. Explain Specific Performance.
Chapter 11: FORECLOSURE
acceleration clause default
foreclosure chilled bidding
deed of trust equity of redemption
judicial foreclosure junior lienholder
necessary party power-of-sale foreclosure
property party senior lienholder
strict foreclosure clog the equity of redemption
deficiency judgment equity of redemption
fair value legislation interpleader
one action rule redemption
sale surplus statutory redemption
bankruptcy bankruptcy estate
Chapter 7 Chapter 11
Chapter 12 Chapter 13
involuntary petition liquidate
means test nonexempt
1. What is a foreclosure?
2. What is the purpose of an acceleration clause?
3. How does a party satisfy their obligations to omitted junior lienholders?
4. What is the order in which judicial foreclosure proceeds are distributed?
5. What is a strict foreclosure?
6. How does a Power-of-Sale foreclosure differ from a judicial foreclosure?
7. What are the two forms of redemption?
8. When is an action for deficiency judgment initiated?
9. What are the differences between a voluntary and involuntary petition for bankruptcy?
10. Outline the process, and list the forms used for filing bankruptcy.