1. Sylvano requested a copy of Certificate of Title No. 12312 from the land titles office. He intends to purchase the land for development if it is unencumbered by registrations affecting its use. This particular land titles office maintains an insurance fund to compensate for loss due to their error. What significance does that fact have with respect to the copy of title Sylvano will receive in exchange for payment of the prescribed fee?
a. Title defects can be fixed to give first priority.
b. It is justification of the valuation of the land.
c. It provides verified ownership by searching chain of title.
d. It is authoritative proof of the status of title.
2. A bank took immediate possession of real property for the non-payment of a mortgage installment on its due date. It is taking steps to have the property sold. The bank is aware that, due to poor market conditions, the amount of the mortgage is higher than the value of the property. What are the most likely legal matters that will come before the courts?
a. distress and equity redemption
b. default and deficiency
c. foreclosure and deficiency
d. foreclosure and court-supervised sale
3. What is the major consequence of the creation of a lease?
a. a specified term of tenancy
b. an increase in the value of property
c. contractual obligations
d. exclusive possession