front 1 How should Leonard's agent respond to his question about having her perform the title search? | back 1 Advise that a title company, attorney, or lender conduct the search |
front 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. | back 2 Took physical possession-Constructive notice Searched public records-Actual Notice Gave information personally-Actual Notice Recorded documents-Constructive notice Inspected the property-Actual Notice |
front 3 The legal presumption that information may be obtained by an individual through due diligence is called constructive notice. | back 3 true |
front 4 Public records are NOT maintained by the clerks of the court. | back 4 false |
front 5 ALTA | back 5 Results of a survey Unrecorded liens Rights of parties in possession of the property |
front 6 Standard | back 6 Improperly delivered deeds Forged documents Incompetent grantor Incorrect marital statements Information in public records |
front 7 Neither | back 7 Easements Zoning Defects known to the buyer |
front 8 The title insurance policy generally identifies certain uninsurable losses called exclusions, including those resulting from issues such as zoning. | back 8 true |
front 9 A certificate of title provides a guarantee of ownership. | back 9 false |
front 10 Which of the following would cause a cloud on title? | back 10 Missing the name of the grantor, gap in the chain of title, a recorded lien that was paid off but not released |
front 11 What does a suit to quiet title do? | back 11 Resolves clouds on title |
front 12 The BEST reason for a buyer to obtain title insurance is | back 12 to ensure that the seller can deliver marketable title. |
front 13 All written documents that affect title to real estate should be | back 13 made a part of the public record. |
front 14 A title that has no defects that could carry over as a problem for the next property owners is called | back 14 a marketable title. |
front 15 Mortgagee title policies protect which parties against loss? | back 15 Lenders |
front 16 A policy of title insurance typically does NOT cover | back 16 zoning changes. |
front 17 All of the following are true regarding public records EXCEPT | back 17 they guarantee marketable title. |
front 18 A title company will NOT cover against defects | back 18 that appear in a title search. |
front 19 All of the following would be considered evidence of marketable title EXCEPT | back 19 a certificate of title by a real estate broker. |
front 20 Public records can help establish which of the following? | back 20 Encumbrances, Ownership, Liens |
front 21 Which of the following occurs under the Torrens system? | back 21 The registration of a title can be canceled by the owner at any time. |
front 22 Which of the following is NOT proof of ownership? | back 22 Deed |
front 23 All of the following would be revealed by a title search EXCEPT | back 23 encroachments. |
front 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 | back 24 constructive notice to the world of the rights of the new owners in the property. |
front 25 Which of the following are traditionally covered by a standard title insurance policy? | back 25 Improperly delivered deeds |
front 26 Which of the following is TRUE about the recording of documents? | back 26 Recording real estate documents provides constructive notice of their contents to the world. |
front 27 Standard coverage in an owner's title insurance policy would cover all of the following EXCEPT | back 27 changes in land use brought about by zoning ordinances. |
front 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? | back 28 The amount of coverage is commensurate with the loan amount. |
front 29 The recordation of a warranty deed | back 29 gives constructive notice of an individual’s interest. |
front 30 At MOST closings, what is the number of title policies issued? | back 30 two |
front 31 The legal presumption that information may be obtained by an individual through due diligence is | back 31 constructive notice. |
front 32 All of the following may be used to prove ownership EXCEPT | back 32 a deed. |
front 33 The legal process used to clear a title is | back 33 a suit to quiet title. |
front 34 The person who prepares an abstract of title for a parcel of real estate | back 34 searches the public records and then summarizes the events and proceedings that affect title. |
front 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? | back 35 The seller could bring a suit to quiet title. |
front 36 In many states, acceptable proof of good title to real estate is bolstered by the purchase of | back 36 title insurance. |
front 37 Standard title insurance protects the buyer from | back 37 defects found in public records. |
front 38 Which of the following is NOT covered by a standard title insurance policy? | back 38 Unrecorded rights of parties in possession |