Unit 4 : Transfer Of Title

Front 1

A title report shows all previously recorded encumbrances on a property

Back 1

False. Current encumbrances

Front 2

A title report shows all previous owners of a property

Back 2

False. An abstract or chain of title would show this; a title report only shows current status

Front 3

An easment appurtenant is transferred by a deed

Back 3

True

Front 4

A woman dies testate and leaves a property to her son in her will. The process used to transfer the property is escheat

Back 4

False. The will goes through probate

Front 5

For personal or real property to transfer in a will, the will must go through probate

Back 5

True

Front 6

If a deed is NOT recorded, later claims on title could potentially take priority

Back 6

True

Front 7

Recording prevents later claims on title from taking priority over an unrecorded interest.

Back 7

True

Front 8

A deed of trust is the BEST deed for a purchaser to use to take a title

Back 8

False. General warranty deed, as a deed of trust, is used to create liens, not pass title.

Front 9

The deed with the MOST warranties, providing the greatest protection for the buyer, is a general warranty deed

Back 9

True

Front 10

An unrecorded deed lacks actual notice

Back 10

False. Constructive notice

Front 11

Legal or constructive notice is created by recording documents

Back 11

True

Front 12

Title insurance premiums are paid annually

Back 12

False. Once at closing

Front 13

Title insurance differs from other types of insurance because the premium is paid only once at the beginning of the policy.

Back 13

True

Front 14

A grantor can impose restrictions on the use of property in a deed

Back 14

True

Front 15

The covenant of seisin states that the owner will defend the title

Back 15

False. Seisin states that the grantor has the right to convey

Front 16

A quitclaim deed is used to limit claims or liability in the future

Back 16

True

Front 17

A homeowner who has a warranty deed but still owes on her mortgage holds title to the land

Back 17

True

Front 18

A quitclaim deed could transfer clear title from the grantor without any guarantees against a cloud

Back 18

True

Front 19

A distant relative of a deceased property owner may have a claim against the property. The attorney from the estate might ask the relative to execute an executor's deed.

Back 19

False. Quitclaim deed.

Front 20

The only form of conveyance in which the grantor specifically disclaims both warranties of title and ownership is a quitclaim deed

Back 20

True

Front 21

A man inherits a family farm that he has never seen and wants to sell it. He would be BEST protected from liability by using a general warranty deed.

Back 21

False. Quitclaim or special warranty deed

Front 22

A quitclaim deed conveys the interest of the grantee

Back 22

False. Grantor

Front 23

For a deed to be valid is must be recorded

Back 23

False. Recording gives constructive notice

Front 24

For a deed to be valid it must have words of conveyance

Back 24

True

Front 25

For a deed to be valid it must be signed by the grantor

Back 25

True

Front 26

For a deed to be valid it must be signed by the grantee

Back 26

False. Grantor only

Front 27

For a deed to be valid it must be delivered and accepted

Back 27

True

Front 28

The primary purpose of a deed is to prove ownership and create a recordable record

Back 28

False. Transfer title

Front 29

A deed by which the grantor pledges to defend the title forever against all claims is a general warranty deed

Back 29

True

Front 30

To convey an entire property, a deed must contain an accurate description of the house and other improvements

Back 30

False. Legal description of the land only needed; all other items are appurtenant

Front 31

A will may be used to transfer property

Back 31

True

Front 32

A properly drawn and executed deed is considered legally delivered from the seler to the buyer when the deed is in the possession of the grantor

Back 32

False. Grantee

Front 33

The grantee's signature is among the essential elements of a valid deed

Back 33

False. Grantor signs

Front 34

A special warranty deed creates the greatest potential risk for the grantor

Back 34

False. General warranty deed

Front 35

To convey ownership of a parcel of real estate, the grantor in the deed must be the owner shown by a current opinion of title or title examination

Back 35

True

Front 36

A summary of the recorded documents pertaining to the title to a property is a title commitment

Back 36

False. Abstract

Front 37

Consideration is among the essential elements of a valid deed

Back 37

True

Front 38

Constructive notice of a real estate sale is achieved by recording documents in the public records

Back 38

True

Front 39

Recording determines priority of loans

Back 39

True

Front 40

The warranty in a special warranty deed is against encumbrances created during the ownership of the grantor

Back 40

True

Front 41

The gift of real property by will is known as a devise

Back 41

True

Front 42

Quiet enjoyment means that neighbors cannot disturb the owner with loud parties

Back 42

False. The grantee will not be disturbed by claims of others

Front 43

Recordation is essential to the validity of a deed

Back 43

False. Title transfers upon delivery and acceptance.

Front 44

The BEST deed to limit liability and future claims is a special warranty deed

Back 44

False. Quitclaim

Front 45

An individual inherits a family ranch and discovers that the title is clouded. A quiet title suit may be needed to clear the title.

Back 45

True

Front 46

The public recording systems cures all title defects

Back 46

False. Allows the posting and searching of claims

Front 47

Documents should be acknowledged or notarized to show they were signed without duress

Back 47

True

Front 48

A gift of real property by will is a bequest

Back 48

False devise; bequest for personal property.

Front 49

The deed that limits the grantor's warranty to the grantor's period of ownership is the general warranty deed

Back 49

False. Special warranty deed

Front 50

Regardless of the form of ownership, all owners need to sign the deed to convey full ownership to the new grantee.

Back 50

True

Front 51

If an owner in severalty dies testate, the deceased's interests will be probated and passed to the deceased's heirs or devisees

Back 51

True

Front 52

Title searches and attorney's opinions are used to guarantee the buyer marketable title.

Back 52

False. There is no guarantee, or proff, of marketable title.

Front 53

When a buyer recorded the deed he received, the legal consequence of recording was to serve constructive notice of the buyers ownership interest

Back 53

True

Front 54

For buyers, the BEST form of protection against loss of title would come in the form of an owner's title insurance policy

Back 54

True

Front 55

Title insurance covers defects and exceptions fround before closing

Back 55

False. Defects found after closing

Front 56

A second mortgage can be distinguished from a first mortgage by the date it was recorded

Back 56

True

Front 57

The mortgagee's title insurance policy protects the borrower.

Back 57

False. Lender

Front 58

The act of recording a deed primarily benefits the grantee

Back 58

True

Front 59

A purchase agreement is usually recorded

Back 59

False. Easements, deeds, long term leases, and mortgages are recorded

Front 60

Policies and procedures that regulate the recordation of documents for conveying rights and/or interests in real estate are established by federal law

Back 60

False. State law

Front 61

The primary purpose of recording deeds and other legal documents is to provide constructive notice

Back 61

True

Front 62

A title search will reveal an encroachment

Back 62

False. Recorded encumbrances

Front 63

Actual notice is created by recording

Back 63

False. By actual visual inspection of the property

Front 64

A cloud of title is MOST likely to be discovered in an appraisal report

Back 64

False. Title report or title opinion

Front 65

A standard policy of title insurance would cover the problems created by a forged deed.

Back 65

True

Front 66

A deed must be acknowledged in order to be valid

Back 66

False. Should be acknowledged to be recorded

Front 67

In a real estate transaction, a licensee should advise the buyer of the need for a title search

Back 67

True

Front 68

Possession of real property passes at the time of delivery and acceptance of the deed, unless otherwise agreed

Back 68

True

Front 69

The laws of the state in which a property is located govern the acquisition, transfer, and recordation of title to land.

Back 69

True

Front 70

An abstract of title contains all the actual documents from the chain of title

Back 70

False. It contains a summary of the documents

Front 71

The government transfers real property to a private individual using a private grant.

Back 71

False. Land patent

Front 72

The covenant of seisin and covenant against encumbrances would be found in a quitclaim deed

Back 72

False. General warranty deed

Front 73

A prescriptive easement is gained through adverse use.

Back 73

True

Front 74

For a deed to be valid, it must contain the signature of the grantee

Back 74

False. Grantors must sign

Front 75

The legal owner is unknown. The neighbor has no official deed to the land but was awarded title because he had lived on the property more than the required statutory period. This is an example of adverse possession.

Back 75

True

Front 76

Tenant A has been awarded an easement by necessity to cross tenant B's property. This easement will terminate automatically after 15 years

Back 76

False. Easements terminate only through merger, release, or abandonment.

Front 77

A quitclaim deed can be used to terminate deed restrictions

Back 77

True

Front 78

A bill of sale is used to convey title to real property

Back 78

False. Personal property

Front 79

The cost of a title insurance policy that protects against defects in the title is paid once every year.

Back 79

False. Once, when issued

Front 80

A title insurance policy would include a summary of the links in the chain of title.

Back 80

False. Would only include the current status

Front 81

A deed must be executed by the LEAST two competent witnesses in order to be valid

Back 81

False. Must contain essential elements; no witnesses needed.

Front 82

Sale and transfer by deed is an example of voluntary alienation

Back 82

True

Front 83

The government conveys title to property using a deed

Back 83

False. Land patent

Front 84

An individual take possession of an owners land after obtaining the owners permission. The possession continues for 26 years. Thereafter, the occupant attempts to get title to the property. the possessor will be unsuccessful because NOT all the requirements for adverse possession have been satisfied.

Back 84

True. Cannot have adverse possession with the owners permission

Front 85

Generally, title insurance coverage extends to exceptions listed in the policy

Back 85

False. Only defects are NOT listed in the policy; exceptions are never covered.

Front 86

An individual seller who realizes a net profit of more than $250,000 from the sale of her personal residence may be required to pay a sales tax.

Back 86

False. Capital gains tax

Front 87

A title commitment is a commitment to insure title.

Back 87

True

Front 88

The mortgagee's policy protects the owner

Back 88

False. Lender

Front 89

The title policy is issued before the closing with the title commitment.

Back 89

False. At or after closing

Front 90

A property has a first mortgage for $100,000 and the property taxes of $4,500 have NOT been paid. The property tax lien will be in first position

Back 90

True

Front 91

A loan for $75,000 is recorded, after which a loan for $150,000 is recorded. The larger lien has priority

Back 91

False. Priority is determined by when the lien was recorded.

Front 92

At the closing of a real estate transaction, continuing charges such as taxes and insurance premiums are prorated

Back 92

True

Front 93

Upon receiving an offer, the earnest money is deposited in a trust account

Back 93

False. Only upon acceptance of te offer will the money be deposited

Front 94

In order for the public to have constructive notice of a deed, it must be registered in the office of property

Back 94

False. County recorder

Front 95

The grantee, under a recorded deed, can enforce the deed against the grantor

Back 95

True

Front 96

If a broker places earnest monies in his operations account, commingling has occured

Back 96

True

Front 97

At closing, the purchase price is normally a credit to the buyer

Back 97

False. Credit seller; debit buyer

Front 98

The buyers earnest money is normally a debit to the buyer

Back 98

False. Credit to buyer

Front 99

In a closing, the buyer normally pays for recording of a new mortgage

Back 99

True

Front 100

The sales commission will normally appear on the buyer's side of the closing statement

Back 100

False. Sellers side of the closing statement

Front 101

A loan origination fee would appear on the buyers closing statement

Back 101

True

Front 102

At closing, the selling price is a credit to the seller

Back 102

True

Front 103

A new loan will be a credit to the buyer

Back 103

True. Remember: Loans are always a buyer credit

Front 104

A title search guarantees the buyer of marketable title

Back 104

False. No guarantees

Front 105

A title search should disclose real estate tax liens, prior recorded mortgages, and unpaid judgments against the seller

Back 105

True

Front 106

The seller normally delivers the deed to the buyer when the sales contract is signed

Back 106

False. at closing/settlement

Front 107

An up to date title abstract requires an attorneys opinion to explain the kind of title and its condition

Back 107

True

Front 108

In order for a buyer to make certain that a property she is purchasing has no encroachments, she should obtain a title search

Back 108

False. Survey or ILC

Front 109

A cloud on the title of a property would probably be revealed by the appraisal

Back 109

False. Title search

Front 110

The primary purpose of the Closing Disclosure is to provide a detailed accounting of the amount the buyer will receive or be required to pay at settlement

Back 110

True

Front 111

A buyers earnest money will appear on the Closing Disclosure as a credit to the seller and a credit to the buyer

Back 111

False. Credit buyer only

Front 112

To determine the amount of cash the buyer will need at settlement, the closing agent will subtract the buyers total credits from the buyers total debits.

Back 112

True

Front 113

The charge for a notary fee for the warranty deed will be a debit to the buyer.

Back 113

False. Debit to the seller who signed it.

Front 114

Assumed loans are a credit to the buyer and a debit to the seller

Back 114

True. Remember: All loans are always a buyer credit

Front 115

Recording of the warranty deed is a debit to the seller

Back 115

False. Buyer records the deed

Front 116

Mortgagee's title policy will be a debit to the seller

Back 116

False. Buyer

Front 117

Rents are prorated between the buyer and the seller.

Back 117

True

Front 118

Security deposits are prorated between the buyer and the seller

Back 118

False. Transferred in full to the buyer

Front 119

A lender wanting title insurance coverage on property pledged as collateral would ask for an errors and omissions policy

Back 119

False. Mortgagee's policy

Front 120

The loan estimate is due at closing, and the Closing Disclosure is due upon application for a loan

Back 120

False. The Closing Disclosure is due at closing; the loan estimate is due at application

Front 121

An owner's policy for title insurance protects the owner and the lender

Back 121

False. Owner and heirs while they have an interest

Front 122

The government transfers government-owned real property to a private individual using a land patent.

Back 122

True

Front 123

The covenant of seisin and covenant against encumbrances would be found in a quitclaim deed

Back 123

False. General warranty deed

Front 124

A title commitment has the MOST historical information

Back 124

False. Abstract

Front 125

A property owner has been walking across his neighbors property. Because both of them are aware of the use and the neighbor gave him permission, the property owner has a prescriptive easement.

Back 125

False. License

Front 126

Loan origination fees are typically a debit to the seller

Back 126

False. Debit to the buyer

Front 127

Property that uses a septic system for sewer needs must often meet size requirements to be in compliance

Back 127

True. Often sized on the number of bedrooms

Front 128

A percolation test is standard before completing any sewer system

Back 128

False. Used for septic systems

Front 129

A seller who states she is the sole owner of a property in which she is a joint tenant would be in violation of the covenant of encumbrances

Back 129

False. Covenant of seisin