A-3 Transfer of Title and Title Insurance

Question 1

Four methods through titles are transferred:

Answer 1

Voluntary alienation, involuntary alienation, descent, and will

Question 2

Transference of a title by choice, is effected through public (government) and private (individual) grants.

Answer 2

Voluntary Alienation

Question 3

Proceeds against the owner’s will and includes foreclosure, eminent domain, escheat, and adverse possession.

Answer 3

Involuntary Alienation

Question 4

Where title is passed because an individual dies with heirs but no will, the probate court appoints an administrator to distribute the property among the heirs according to law.

Answer 4

Descent

Question 5

Deed: a clause that affirms the grantor is giving up ownership and clarifies what is being given up.

Answer 5

Granting clause

Question 6

Deed: Used when limiting the interest conveyed in a deed, when grantors wish to convey something less than the estate they own. “To have and to hold…”

Answer 6

Habendum clause

Question 7

In a discrepancy between an Habendum clause and a granting clause which prevails?

Answer 7

Granting Clause

Question 8

In a deed where an owner reserves the title to a portion of property such as land or mineral rights ; a new right to that which is being granted, such as a life estate.

Answer 8

Exceptions or reservations

Question 9

A promise that the grantor owns the property and has the right to convey

Answer 9

Covenant of Seizin

Question 10

A promise that the grantor will defend the grantee’s title against claims by third parties and compensate the grantee if the title turns out to be invalid or defective.

Answer 10

Covenant of quiet enjoyment

Question 11

The grantor promises the property is free from encumbrances except those already revealed

Answer 11

Covenant against further encumbrances

Question 12

Contained in both special and general warranty deeds the grantor agrees to perfect or correct the title if necessary during their lifetime

Answer 12

further assurance

Question 13

Contained only in general warranty deeds. If 3rd party wrests the title the grantee may sue for damages up to the value of the property at time of sale

Answer 13

Warranty forever

Question 14

First deed in chains of title- transfer real property from the state or federal government to individuals.

Answer 14

Patent deeds

Question 15

Include bargain and sale, special warranty and general warranty deeds.

Answer 15

Conveying deeds

Question 16

Deed from which the government commonly sells real property, with no warranties and may be used by private grantors who wish to limit their liability

Answer 16

Bargain and sale deeds

Question 17

4 types of Bargain and Sale deeds:

Answer 17

1. Sheriff’s deeds 2. Treasurer’s deeds 3. Executors deeds 4. Trustee’s deeds

Question 18

When a grantor accepts responsibility for encumbrances and defects in property arising only during their ownership

Answer 18

Special warranty deed

Question 19

A deed where the grantor fully guarantees clear title but not the physical condition of the property.

Answer 19

General Warranty Deed

Question 20

Deed which pass only the right, title and interest the grantor has at the time of release, not any subsequent title or interest acquired. No covenants or warranties.

Answer 20

Quit claim deed.

Question 21

A type of quit claim deed used between relatives

Answer 21

Gift Deed

Question 22

A type of deed that is a statement denying legal responsibility. Husband would sign this if wife wants to purchase sole and separate.

Answer 22

Disclaimer deed.

Question 23

A deed used when one person represents another.

Answer 23

Fiduciary deed.

Question 24

The loss of property against an owner’s wishes can occur through natural causes and law.

Answer 24

Involuntary Alienation

Question 25

The process of acquiring land through soil deposits as a result of the movement of rivers and streams is? The soil deposited this way is?

Answer 25

accretion, alluvion

Question 26

Receding of water from its usual watermark in rivers, streams and littoral bodies of water (lakes and oceans)

Answer 26

Reliction

Question 27

The property of an individual who dies without a will

Answer 27

Intestate

Question 28

In the matter of wills real property is termed

Answer 28

Devise

Question 29

There are 3 basic wills

Answer 29

1. Formal (conventional 2. holographic 3. nuncupative

Question 30

Supplement to a will, seldom revokes the original will, requires the signatures of the maker and two witnesses

Answer 30

Codicil

Question 31

An accumulation of facts, which, if proven, would enable a person to recover or retain possession of a piece of real property

Answer 31

Title

Question 32

Constructive Notice

Answer 32

legal notice to the world at large (the law charges the public with responsibility for knowledge of the contents of the chain of title whether or not the public is aware of its existence

Question 33

Actual Notice

Answer 33

Not as strong as constructive notice. Direct knowledge “see my house on the property, i live there”

Question 34

A prepared summary of the chain of title and not equivalent to a recorded deed. Attorney’s opinion “certificate of title”

Answer 34

“Abstract of Title”

Question 35

A conclusive system first developed in Australia (not in AZ)

Answer 35

Torrens’ Certificate

Question 36

Protects property owners and mortgagees against loss through defects in title, liens, or encumbrances. Covers the past not the future. There are two types

Answer 36

Title insurance- 1. Owners 2. Lenders

Question 37

Generally referred to as the exchange of a claim for money thereby waiving all further rights, or the substitution of one party for another so the substitute party has the same rights as the former

Answer 37

Subrogation

Question 38

An employee of a title company who examines public records for problems or aberrations and renders an evaluation

Answer 38

Title Examiner

Question 39

A storage facility often erected by title companies to store copies of documents obtained from public records and county recording offices.

Answer 39

Title plant

Question 40

Sets forth the property to be insured, a legal description of the property, the name of the party to be insured, and the type of estate (fee simple)

Answer 40

Schedule A

Question 41

Sets forth standard and special exceptions not covered by the policy. Standard exceptions (items never covered by title insurance) including property taxes, a loan being assumed and deed restrictions

Answer 41

Schedule B

Question 42

Insures the lender has an enforceable lien against the property. (Also known as ALTA, Broad form coverage, and Extended Coverage)

Answer 42

Lenders policy

Question 43

When a condition is placed in a deed a violation of the condition could result in:

Answer 43

Forfeiture

Question 44

At what point is a recordation take place

Answer 44

When assigned a docket and page number