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28 Cards in this Set
- Front
- Back
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Which of the following is acceptable as the evidence of marketable title?
a. A trust deed b. A warranty deed c. A title insurance policy d. An affidavit |
c. A title insurance policy
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When a claim is settled by a title insurance company, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is known as
a. caveat emptor b. surety bonding c. subordination d. subrogation |
d. subrogation
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Which of the following would be used to clear a defect from the title records?
a. a lis pendens b. an estoppel certificate c. a suit to quiet title d. a writ of attachment |
c. a suit to quiet title
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The part of the title insurance policy that sets forth all of the encumbrances and defects that will not be insured against is called the
a. schedule of defects b. citation clause c. non-exclusionary clause d. schedule of exceptions |
d. schedule of exceptions
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An abstract of title does not provide evidence of title unless it is accompanied by a(n)
a. copy of the title insurance policy b. letter of insurance coverage c. letter of warranty d. legal opinion of title |
d. legal opinion of title
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A bill of sale is used to transfer the ownership of
a. real property b. fixtures c. personal property d. appurtenances |
c. personal property
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When U purchased her home, the title insurance policy she received included all of the following EXCEPT a
a. list of outstanding mortgage loans against the property b. record of all of the previous owners of the property (is chain of title) c. report of the existing tax liens against the property d. list of the easements held by utility companies |
b. record of all of the previous owners of the property (is chain of title)
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A written summary of the history of all conveyances and legal proceedings affecting a specific parcel of real estate is called a(n)
a. Affidavit of title b. certificate of title c. abstract of title d. title insurance policy |
c. abstract of title
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when the preliminary title report reveals the existence of an easement on the property, it indicates that the easement is a(n)
a. lien b. encumbrance c. encroachment d. tenement |
b. encumbrance
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The recorded history of matters that affect the title to a specific parcel of real property is a(n)
a. Chain of title b. Certificate of title c. Title insurance policy d. Abstract of title |
d. Abstract of title
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Generally, if some defect is found in the title to real property, the effect on a sales contract is that
a. the contract is immediately void b. a new contract must be written c. the buyer has a reasonable time to find another property d. the seller has a reasonable time to correct the defect |
d. the seller has a reasonable time to correct the defect
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All of the following would be considered evidence of marketable title EXCEPT a(n)
a. abstract of title with a legal opinion b. title commitment or title insurance policy c. certificate of title by a real estate broker d. certificate of title by a real estate attorney |
c. certificate of title by a real estate broker
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The recordation of a warranty deed
a. guarantees ownership b. protects the interests of the grantee c. prevents claims of parties in possession d. provides defense against adverse possession |
b. protects the interests of the grantee
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Documents affecting real estate are recorded or filed with the county in which the property is located to
a. satisfy the legal requirements for recording b. give constructive notice of the real estate interest c. comply with the terms of the Statute of Frauds d. prove the execution of the document |
b. give constructive notice of the real estate interest
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All of the following would be acceptable as evidence of marketable title EXCEPT a(n)
a. certificate of title b. Title insurance policy c. Abstract and legal opinion d. Property owner’s warranty deed |
d. Property owner’s warranty deed
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The best assurance of good title that a real estate purchaser can obtain is a(n)
a. valid warranty deed signed by the seller b. valid quitclaim deed signed by the seller c. title insurance policy d. certificate of title |
c. title insurance policy
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A document that protects against hidden risks such as forgeries and loss due to defects in the title, subject to specific exceptions, is called a(n)
a. chain of title b. abstract of title c. certificate of title d. title insurance policy |
d. title insurance policy
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The body of law that covers such topics as security agreements, financing statements, and bulk transfers is the
a. American Land Title Association. b. Uniform commercial code c. Parole Evidence rule. d. Statute of limitations. |
b. Uniform commercial code
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The recording of a deed
a. is all that is required to transfer the title to real estate b. gives constructive notice of the ownership of real property c. insures the interest in a parcel of real estate d. warrants the title to real property |
b. gives constructive notice of the ownership of real property
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A buyer took delivery of the deed to his new house but forgot to record the deed. Under these circumstances
a. the transfer of the property form the seller is ineffective b. the buyer’s interest is not fully protected against third parties c. the deed is invalid after 90 days d. the deed is invalid after 6 months |
b. the buyer’s interest is not fully protected against third parties
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the mortgagee purchases a title insurance policy on the property a buyer is pledging as security for the mortgage loan. Which of the following is true?
a. the policy is issued for the benefit of the buyer. b. The policy guarantees that the buyer’s equity will be protected. c. The amount of coverage is commensurate with the loan amount. d. The amount of coverage increases as the borrower’s equity increases. |
c. The amount of coverage is commensurate with the loan amount.
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Which of the following is an example of proof of ownership?
a. an abstract of title b. a deed c. title insurance d. a title search |
c. title insurance
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A defect or a cloud on the title may be cured by
a. obtaining quit claim deeds from all interested parties b. bringing an action to register title c. paying cash for the property at closing d. obtaining title insurance |
a. obtaining quit claim deeds from all interested parties
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all of the following is true regarding public records EXCEPT
a. they give notice of encumbrances b. they establish priority of liens c. they guarantee marketable title d. they provide constructive notice about interests in the property |
c. they guarantee marketable title
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The primary reason a buyer obtains title insurance is
a. because the mortgage lender requires it b. to ensure that the buyer has marketable title c. to ensure that the abstractor has prepared a complete summary of title d. to pay future liens that may be filed |
b. to ensure that the buyer has marketable title
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A sales contract requires the seller to deliver marketable title. Which of the following is true?
a. the delivery of a general warranty deed will provide this assurance. b. A search of the public records will prove that the title is marketable. c. The seller will pay all liens that are pending. d. All encumbrances will be removed by the seller. |
c. The seller will pay all liens that are pending.
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An outstanding claim or encumbrance which, if valid, would impair an owner’s title is a
a. color of title b. cloud on the title c. quiet title d. subrogation |
b. cloud on the title
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Quieting a title refers to
a. a title insurance company’s search of the title b. a mortgagor relinquishing title after foreclosure c. the deposit of a title with an escrow agent d. the removal of a cloud on the title by court action |
d. the removal of a cloud on the title by court action
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