QUESTION 1

Which one of the following statements is not part of the "bundle of rights" enjoyed by a fee simple owner of property?

	a.	The right to possess the property
	b.	The right to control what activities take place on the property
	c.	The right to use the property as the owner wishes, within the bounds of the law
	d.	The right to access the property through the property of another, when necessary

QUESTION 2

Ann and Bob own property in Massachusetts. Their Deed recites that they are a married couple and will hold title as tenants by the entirety. Which one of the following statements is true?

	a.	Ann can leave her share of the ownership to her child from a previous marriage in her will. If Ann dies before Bob, her child and Bob will own the property as joint tenants.
	b.	If Bob and Ann divorce, they will continue to hold title to the property jointly.
	c.	If Ann and Bob were not actually married, they will hold title as tenants in common.
	d.	If Bob dies before Ann, Ann will be the sole owner of the property regardless of the provisions of Bob's will.

QUESTION 3

Which one of the following statements is true about land in the Registered Land or Torrens System in Massachusetts?

	a.	Registered Land property cannot be sold by a mortgagee at foreclosure
	b.	Deed errors can be corrected by filing a confirmatory deed that fixes the error
	c.	Registered Land can be taken by Adverse Possession
	d.	Ownership is reflected on a Certificate of Title with a Memorandum of Encumbrances kept at the Registry of Deeds

QUESTION 4

Which one of the following is not part of a Massachusetts Deed?

	a.	Notary's acknowledgment clause
	b.	Grantor clause
	c.	Amount of the buyer's mortgage
	d.	Property description

QUESTION 5

You are a paralegal coordinating the closing of Massachusetts property being sold by Evelyn and Frank (Sellers) to Grace and Hope (Buyers). Your firm represents the buyers and lender and will be acting as Settlement Agent. Details of the transaction are as follows:

• The property address is 200 Liberty Street, Soldasis, Massachusetts in Middlesex County.
• The purchase price is $500,000.00 and Buyers have already submitted a deposit of $25,000.00 being held by the listing agent in escrow.
• Buyers will be financing the purchase with a mortgage loan from Generic Mortgage in the amount of $450,000.00.
• The closing date will be September 1, 2021.
• Property taxes are $3650.00 for the year and have been paid in full through the first quarter of Fiscal Year 2021 by Sellers. Like most Massachusetts towns, the Soldasis bills taxes quarterly and the fiscal year starts on July 1. The quarterly bills are due in August, November, February and May, so taxes are currently paid through September 30, 2021
• You have already calculated Sellers' total closing costs to be $27,999.00.
• You have already calculated Buyers' total closing costs to be $7,212.05.
• You have received a final water and sewer reading from the Town of Soldasis Water Department that shows $140.15 is due.
• The Purchase & Sale Agreement recites that the Sellers have agreed to credit the Buyers $1,500.00 toward repairs.

Fill out the Summary of Transaction section of the CD as you are able:

QUESTION 6

True or False: Massachusetts deeds should recite the purchase price or other consideration paid.

True

False

QUESTION 7

True or False: Property is held by a married couple as tenants by the entirety. A deed signed by only one of them is sufficient to sell the property

True

False

QUESTION 8

Aside from deeds, what other documents will be in a thorough title examination?

	a.	Relevant probate records of prior owners
	b.	Easements that affect the property
	c.	Unreleased liens on the property
	d.	All of the above

QUESTION 9

You are a closing paralegal responsible for the final Closing Disclosure for a closing next week, list five things you will need.

QUESTION 10

Which one of the following statements is true about title insurance?

	a.	Title insurance does not guarantee title is free of defects, but shifts the risk of loss due to a defect from the insured to the insurer.
	b.	The lender's title insurance policy will protect the new lender if the owner refinances his mortgage.
	c.	The lender's title insurance policy will protect the owner of the insured property.
	d.	Residential property buyers are required to purchase an owner's title insurance policy at closing.

QUESTION 11

True or False: A prescriptive easement can be established only by a written agreement between the parties.

True

False

QUESTION 12

Which of the following liens is given priority over other types of liens in Massachusetts, regardless of when they are dated or recorded.

	a.	Property Tax Liens
	b.	Receiver's Liens
	c.	Condominium Liens
	d.	All of the above

QUESTION 13

Ursula owns property in Massachusetts. She currently owes approximately $350,000.00 on her mortgage, which is the only lien on the property. She has fallen behind on payments and property values in her town have been declining. The property is currently valued at $300,000.00. Ursula contacts her lender to request permission to sell the property to Victor, who will pay the current fair market value and Ursula hopes that the lender will agree and forgive the amount of the debt she will not be able to pay with the proceeds from the sale. What is this type of transaction called?

	a.	A mortgage foreclosure
	b.	A Deed in Lieu of Foreclosure
	c.	A short sale
	d.	None of the above

QUESTION 14

List five documents you would expect to see at the closing for the purchase of commercial property:

QUESTION 15

Aside from a Deed, list three ways a person can acquire an ownership interest in real estate

QUESTION 16

List three types of liens that may show outstanding in a title examination:

QUESTION 17

Harry and Megan are buying a home in Massachusetts for $800,000.00. They plan to put $200,000.00 down and finance the remaining $600,000.00 with a mortgage loan. Their loan officer tells them that Megan qualifies for a better interest rate by herself then they do together. They want to own the home jointly as tenants by the entirety, but Megan will be the only borrower on the loan. Which one of the following statements is true:

	a.	Harry cannot own the property with Megan unless he is also a borrower.
	b.	Even if Megan is the only borrower, both Harry and Megan will need to sign the Promissory Note if they both own the property.
	c.	Even if Megan is the only borrower, both Harry and Megan will need to sign the Mortgage if they both own the property.
	d.	None of the above.

QUESTION 18

Which one of the following do you need for a Title Commitment?

	a.	The title examination
	b.	An appraisal of the property
	c.	The buyers' social security numbers
	d.	The seller's mortgage payoff statement

QUESTION 19

True or False: A Trustee who holds title to real estate owes a fiduciary responsibility to the beneficiaries.

True

False

QUESTION 20

Annie and Eddie Pennywise decide that they don't need a lawyer to represent them when they purchase their first home in Massachusetts. They read up on closings through Readers Digest and other reliable sources and decide they know enough to proceed on their own. The attorney representing the Lender will preside over the closing. She can answer any last-minute questions. They hand over their money, sign all the paperwork, and the deed and other documents are recorded. The closing took place in just a few minutes; they told everyone that they were anxious to be on their way to meet their moving van. Truthfully, it is a hot day and they can't wait to take a dip in their new inground pool, which graces the backyard.

Later that evening, Annie opened the folder of documents given to them at the closing, and finds a mortgage inspection plan ("plot plan") at the top of the pile. The plan shows an easement held by Clampett Oil Company for pipes running right through the middle of the pool. It is obviously under the pool or they would have seen the pipes at the time of their home inspection. Their first inclination is to call the Sellers and tell them to fix it and get the pipes removed. Instead, they finally decide to hire a lawyer. You, as the Paralegal, are asked to research this matter and come up with possible remedies to be discussed by your boss and Mr. and Mrs. Pennywise at their initial conference. What are the possibilities?