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29 Cards in this Set
- Front
- Back
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Which of the following is NOT an example of a marketable title? Title Insurance Abstract of Title Location Survey Certificate of Title |
A: Location Survey All of the others except location survey show evidence of a marketable title |
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A probate court determined the disposition of Bob’s property in accordance to state statutes because Bob died testate with a will Intestate with right of survivorship |
A: Intestate A probate court determined the disposition of Bob’s property in accordance to state statutes because Bob died intestate. |
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The Torrens System is most commonly used in which part of Colorado? Northern Southern Eastern Western |
A: Eastern The Torrens system is used in the eastern part of Colorado. |
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A section is 1 mile by 1 mile. How wide is a four-acre (a hint: one acre contains 43,560 sq ft) easement that runs along the western edge of a section? 33 feet 38 feet 45 feet 28 feet |
A: 33 feet This is a hard one. A section is 1 mile by 1 mile. This means one edge of a section is 5280 feet (1 mile) long. Four acres (43,560 sq ft x 4 acres) contains a total of 174,240 sq. ft. 174,240 divided by 5280 equals 33. The dimension of this 4 acre easement is 5280 feet long by 33 feet wide. |
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Which of the following situations would cause a deed to create tenancy in common instead of joint tenancy with right of survivor-ship? the parties agree that all have the right of possession the three parties agree to divide the property 40 per cent, 30 per cent, 30 per cent between them the parties receive their interests at the same time all parties are named on a single deed conveying the property |
A: the three parties agree to divide the property 40 per cent, 30 per cent, 30 per cent between them If the ownership interests were unequally divided like this it would invalidate the joint tenancy and create the default of tenancy in common. |
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Settlement statements are to be available for inspection by the buyer: one week prior to closing 24 hours prior to close one hour prior to closing prior to the commencement of the closing |
A: 24 hours prior to close Legally, settlement statements are supposed to be available for inspection 24 hours prior to closing. As a matter of practicability, many closings occur as soon as the closing documents are ready. (The parties waive the 24-hour period.) |
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A standard title insurance policy indicates: if there are any judgment liens on the property if the property is free and clear of all encumbrances what the current condition of the title is, subject to stated exceptions all of these |
A: all of these A standard title insurance policy includes a list of liens, judgments, and encumbrances in the schedule of exceptions, which is an indication of title condition. |
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When Anthony purchased his home, the title insurance company's report included all of the following EXCEPT: a list of outstanding mortgage loans against the property a report of existing tax liens against the property a record of all previous owners of the property a list of tax districts impacting the property |
A: a record of all previous owners of the property Title insurance documents include all liens and deflects of record and easements, but not the chain of title. |
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A deed that contains no warranties, but in which the grantor does give up his own rights or claims, is known as: a quitclaim deed words of conveyance a deed restriction the granting clause |
A: a quitclaim deed A quitclaim deed is one in which NO guarantees are offered about past claims to the property, with the exception of those held by the grantor. |
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Essential elements for a deed include: Recording Words of conveyance Signatures of grantor and grantee All of the above |
A: Words of conveyance Although it is recommended that a deed be recorded, in Colorado it is not required. Required is: the signature of the grantor, words of conveyance (granting clause), that it be in writing, that the grantee is named, consideration (payment), a description of the ownership interests being conveyed, a legal desciption, delivery of the deed and acceptance by the grantee. |
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In order to acquire title by adverse possession in Colorado the claim would requires 18 years of possession, unless the claimant has color of title and pays taxes on the property, then period of possession required is: 15 years 7 years 18 years 9 years |
A: 7 years The correct answer is 7 years. The key is "color of title", without it, a claim of adverse possession requires 18 years. Color of title means you have some written proof that you have title but it is legally defective. An example would be a deed transferring ownership to a property from a father to a child that was found in a drawer after the death of the father. Legally, the deed should have been delivered to the child while the father was still alive, so it is not valid. However, it certainly shows the fathers intent. So, the child claims color of title, pays taxes, possesses the property and after 7 years if no one challenges it in court can claim the property under the law of adverse possession. |
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When a broker turns over funds to a title company and has the closing statement prepared by the title company: the broker is not responsible for the accuracy of the figures on the statement it is the responsibility of the title company to provide the buyer and seller with copies of the closing statement the title company may charge no more than $75.00 to prepare the uniform settlement statement the responsibility for the accuracy of the figures is the title company |
A: it is the responsibility of the title company to provide the buyer and seller with copies of the closing statement The broker is always responsible for the accuracy of the figures that the title company prepares. |
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The best assurance of good title, that a real estate purchaser can obtain, is: a valid quitclaim deed executed by the seller a general warranty deed title insurance a special warranty deed |
A: title insurance Even though a seller promises there are no liens or defects he is not telling the buyer about, there is no indemnification (reimbursement) for losses incurred unless there is a title insurance policy. |
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A House sold at $138,240 which was at a loss of 4% . What was the original cost of the house? 144000 129200 153710 143000 |
A: 144000 $138,240/ .96 (100% - 4% = 96%) = $144,000 |
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The succession of conveyances whereby the present owner of record derives title is called the: chain of title certificate of title title insurance Torrens certificate |
A: chain of title The chain of title is the record of ownership from the first patent (instrument used to convey ownership from the government to the first private owner) to its current owner. |
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Generally, if some defect is found with the title, the effect is that: the contact is immediately void the seller has a reasonable period of time to correct the defect the contract is revoked a new contract must be written |
A: the seller has a reasonable period of time to correct the defect A seller is given a reasonable period of time (not specifically defined) to curve defects in a title, but is not found in breach of contract if defects cannot be cured. |
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It is important for the Title Company to know what type of loan the purchaser is obtaining for the purposes of: preparing the promissory note and deed of trust ordering the appraisal setting up the inspection |
A: preparing the promissory note and deed of trust Closings often finalize two separate transactions: the home purchase and the buyer's mortgage loan. Each transaction has many documents associated with it, such as the deed, the mortgage and promissory note, insurance policies and disclosures. It's the title company's responsibility to prepare each document and obtain the required signatures. |
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Funds brought to the closing table must be in the form of: a personal check verified by the bank title company check good funds personal check |
A: good funds The good funds rule requiring closing funds to be in the form of cash, wire transfers, money orders, cashier’s checks, or other certified funds. A personal check is not verified funds. |
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In the purchase of real estate, the buyer is held responsible for facts and information obtainable through: media notice constructive notice restrictive notice construction notice |
A: constructive notice A purchaser is responsible for facts and information obtainable through actual or constructive notice. |
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Which title insurance guarantees against every threat: standard policy extended policy mortgagee's policy none |
A: none NO TITLE INSURANCE POLICY INSURES AGAINST EVERY THREAT! |
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A defect or a cloud of title of a property is best cured by: Quitclaim deed A partition action Obtaining title insurance Repudiating adverse claims |
A: Quitclaim deed All parties who may have an interest in the property can via a quit claim deed correct the cloud on title. |
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Instruments affecting real estate are recorded with the County Clerks office, in the county where the property is located, to: give constructive notice to the world of the interest in a particular parcel of property the instrument purports to create satisfy the legal requirements for recording to comply with the terms of the statute of frauds to prove the validity of the instrument |
A: give constructive notice to the world of the interest in a particular parcel of property the instrument purports to create In Colorado legal documents are not required to be recorded to be valid. Records gives construction notice to the world that the document exists, and establishes priority in the event of foreclosure. |
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Which of the following is accepted as evidence of marketable title? Trust deed Warranty deed Title insurance policy Affidavit |
A: Title insurance policy "Marketable title" means that someone has clean ownership of a property and thus the right to sell it to another. A trust deed secures a promissory note and pledges real property as collateral for a loan. A warranty deed conveys ownership of property from the grantor to the grantee a title insurance policy discloses liens, clouds, and defects on the title! An “affidavit” is nonspecific-What is this affidavit? |
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Recording a deed: guarantees ownership protects the interests of the purchaser eliminates prior liens perfects the instrument if it was improperly executed |
A: protects the interests of the purchaser Recording a deed protects the interests of the buyer; it does not guarantee ownership or eliminate prior liens. Recording an invalid document does not perfect it. |
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Which of the following is not considered evidence of marketable title? An abstract of title with an attorney's opinion A title insurance policy commitment A certificate of title by a broker A Torrens certificate |
A: A certificate of title by a broker An abstract and opinion by an attorney as well as title insurance is considered evidence of marketable title. No one cares what the broker thinks. |
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A summary of the history of all conveyances and legal proceedings affecting a specific parcel of real estate is called: affidavit of title certificate of title title insurance policy abstract of title |
A: abstract of title An abstract is a historical accounting of contingencies, legal proceedings, and other events that affect a parcel. |
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A contract or document that protects (subject to specific exceptions) against loss due to defects of public record and against hidden risks such as forgeries is called: chain of title certification title insurance abstract of title |
A: title insurance The chain of title is the list of owners who have owned the property. Title insurance provides indemnification (reimbursement) for certain losses in connection divith the ownership of property. |
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The part of a title insurance policy that sets forth all encumbrances and defects that are not insured, is called the: schedule of defects citation clause non-exclusionary clause schedule of exceptions |
A: schedule of exceptions The schedule of exceptions is included in every title insurance policy. It lists all of the liens and defects that are currently of record and are not insured against. |
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An abstract of title usually is accompanied by a(n): opinion copy of title insurance letter of assurance all of the above |
A: opinion An attorney is generally asked to render an opinion regarding the conclusion of title after reviewing the abstract. |
