12 Questions
In order to establish authority for real estate, it is not necessary to review the articles of organization and operating agreement of an LLC.
False
Having an operating agreement is a common practice for LLC entities that hold real estate.
True
The term 'authorized signatory' is preferred over specifying whether the individual signing is a member or manager of an LLC.
False
In a mortgage, witnesses are always required for the president or CEO to sign without a seal or corporate resolution.
False
For limited partnerships, any general partner can convey or mortgage property as long as it is within the ordinary course of partnership activities.
True
If a limited partnership transaction is outside the ordinary course of business, approval from all general partners is sufficient to proceed without the need for consent from limited partners.
False
A collateral assignment of a mortgage means transferring the right to collect under the mortgage to a third party.
True
If Logan Bank signs off on a collateral assignment, it signifies that the mortgage has been satisfied.
False
A collateral assignment of mortgages is similar to a collateral assignment of leases and rents in commercial transactions.
False
According to MRTA, interest recorded prior to the effective date of the root of title can be eliminated.
False
Under MRTA, easements for rights of way can be eliminated if they have been in use for more than 40 years.
False
Oil and gas mineral reservations are completely eliminated under MRTA.
False
This quiz focuses on the importance of establishing proper authority, particularly in signing legal instruments for a corporation. It covers the issues that may arise when the right person with the proper authority does not sign the documents.
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