unit 7 real estate Flashcards


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1

How should Leonard's agent respond to his question about having her perform the title search?

Advise that a title company, attorney, or lender conduct the search

2

Anyone with an interest in a parcel of real estate can take certain steps, called giving notice, to ensure that the interest is made known to the public. The two basic types of notice are constructive notice and actual notice. For each example, indicate the appropriate form of notice.

Took physical possession-Constructive notice

Searched public records-Actual Notice

Gave information personally-Actual Notice

Recorded documents-Constructive notice

Inspected the property-Actual Notice

3

The legal presumption that information may be obtained by an individual through due diligence is called constructive notice.

true

4

Public records are NOT maintained by the clerks of the court.

false

5

ALTA

Results of a survey

Unrecorded liens

Rights of parties in possession of the property

6

Standard

Improperly delivered deeds

Forged documents

Incompetent grantor

Incorrect marital statements

Information in public records

7

Neither

Easements

Zoning

Defects known to the buyer

8

The title insurance policy generally identifies certain uninsurable losses called exclusions, including those resulting from issues such as zoning.

true

9

A certificate of title provides a guarantee of ownership.

false

10

Which of the following would cause a cloud on title?

Missing the name of the grantor, gap in the chain of title, a recorded lien that was paid off but not released

11

What does a suit to quiet title do?

Resolves clouds on title

12

The BEST reason for a buyer to obtain title insurance is

to ensure that the seller can deliver marketable title.

13

All written documents that affect title to real estate should be

made a part of the public record.

14

A title that has no defects that could carry over as a problem for the next property owners is called

a marketable title.

15

Mortgagee title policies protect which parties against loss?

Lenders

16

A policy of title insurance typically does NOT cover

zoning changes.

17

All of the following are true regarding public records EXCEPT

they guarantee marketable title.

18

A title company will NOT cover against defects

that appear in a title search.

19

All of the following would be considered evidence of marketable title EXCEPT

a certificate of title by a real estate broker.

20

Public records can help establish which of the following?

Encumbrances, Ownership, Liens

21

Which of the following occurs under the Torrens system?

The registration of a title can be canceled by the owner at any time.

22

Which of the following is NOT proof of ownership?

Deed

23

All of the following would be revealed by a title search EXCEPT

encroachments.

24

The deed to a farm was made part of the public record, and the new owners proceeded to take possession of the property, living there and cultivating the acreage. The fact that the new owners live on the property serves as

constructive notice to the world of the rights of the new owners in the property.

25

Which of the following are traditionally covered by a standard title insurance policy?

Improperly delivered deeds

26

Which of the following is TRUE about the recording of documents?

Recording real estate documents provides constructive notice of their contents to the world.

27

Standard coverage in an owner's title insurance policy would cover all of the following EXCEPT

changes in land use brought about by zoning ordinances.

28

A mortgagee received a title insurance policy on the property a buyer is pledging as security for the mortgage loan. Which of the following is TRUE?

The amount of coverage is commensurate with the loan amount.

29

The recordation of a warranty deed

gives constructive notice of an individual’s interest.

30

At MOST closings, what is the number of title policies issued?

two

31

The legal presumption that information may be obtained by an individual through due diligence is

constructive notice.

32

All of the following may be used to prove ownership EXCEPT

a deed.

33

The legal process used to clear a title is

a suit to quiet title.

34

The person who prepares an abstract of title for a parcel of real estate

searches the public records and then summarizes the events and proceedings that affect title.

35

An owner decides to sell property and discovers that there is a lien on the title for a swimming pool that the owner paid off 10 years ago. The pool company is out of business. What is the owner to do?

The seller could bring a suit to quiet title.

36

In many states, acceptable proof of good title to real estate is bolstered by the purchase of

title insurance.

37

Standard title insurance protects the buyer from

defects found in public records.

38

Which of the following is NOT covered by a standard title insurance policy?

Unrecorded rights of parties in possession