Dominant Paid Off Mortgage Trap
This trap appears as a wrong-answer choice in 1 active question. Spotting how it is built is the repair: read each example's “why it's attractive” before the “why it's wrong.”
Subject distribution
- Real Property1
Example wrong choices
15041_scripture_print_studio_lien · REAL_PROPERTY · Choice AYes, because Lydia received the studio lot by quitclaim gift rather than as a purchaser for value.
Why it's attractive
Lydia's value status does not connect to Martha's title-insurance policy.
Why it's wrong
Lydia's value status does not connect to Martha's title-insurance policy.
15041_scripture_print_studio_lien · REAL_PROPERTY · Choice CNo, because Martha conveyed the studio lot to Timothy before Lydia made the claim.
Why it's attractive
It treats sale as an automatic cutoff and ignores the warranty-liability continuation trigger.
Why it's wrong
It treats sale as an automatic cutoff and ignores the warranty-liability continuation trigger.
15041_scripture_print_studio_lien · REAL_PROPERTY · Choice DNo, because the title policy ended when Martha paid off Cedar Bank's mortgage.
Why it's attractive
The paid-off loan tells you about Cedar Bank, not Martha.
Why it's wrong
The paid-off loan tells you about Cedar Bank, not Martha.
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Practice questions using this trap →