Acquisitions and Transfer of Title

Question 1

What kind of notice is it called when a document is recorded?

A: Reinstatement
B: Implied
C: Constructive
D: Actual

Answer 1

C: Constructive

Question 2

An abstract of title & attorney’s opinion would inform the buyer:

A: The title is marketable
B: A guarantee of property value exists
C: Purchase price was in line with the market
D: No future clouds will appear

Answer 2

A: The title is marketable

Question 3

When a property is located within a homeowner’s association, who is responsible for supplying the appropriate documents?

A: Selling Broker
B: Association if fifty units or more
C: Listing Broker
D: Seller if more than fifty units

Answer 3

B: Association if fifty units or more

Question 4

The Habendum clause would be found in a:

A: Deed of Trust
B: Mortgage
C: Lease
D: Warranty Deed

Answer 4

D: Warranty Deed

Question 5

Words in a deed that limit the extent of the grantee’s ownership:

A: Habendum
B: Estoppel
C: Granting
D: Defeasance

Answer 5

A: Habendum

Question 6

A buyer purchases property with a homeowner’s association that has CC&Rs. Where would the CC& R’s most likely be found?

A: In the promissory note
B: In the purchase contract
C: In the listing
D: County recorders office

Answer 6

D: County recorders office

Question 7

In order to record a deed, which of the following would be required:

A: Signed and acknowledged
B: Signed and delivered
C: Signed by the grantee
D: Signed and dated

Answer 7

A: Signed and acknowledged

Question 8

You homestead property then default on a loan for $50,000, which was secured with a note and Deed of Trust. How much do you owe?

A: 90 days of payments
B: 6 months of payments
C: $50000
D: Nothing

Answer 8

C: $50000

Question 9

A lender is loaning money on residential property. What type of title insurance would the lender require?

A: Liability
B: Standard
C: Extended
D: Errors and omissions

Answer 9

C: Extended

Question 10

Title is transferred when the:

A: Purchase contract is signed
B: Deed is recorded
C: Deed is signed and notarized
D: Deed is delivered and accepted

Answer 10

D: Deed is delivered and accepted

Question 11

What is NOT necessary for a valid transfer of title to real estate?

A: Acknowledgment of the deed
B: Recording of the deed
C: Signing of the deed
D: Delivery of the deed

Answer 11

B: Recording of the deed