Ch 16: Title and Transferring Title

Question 1

Tom sold to Dick, but Dick recorded the deed in the wrong county:

a. Between Tom and Dick, Dick has good title.
b. Dick’s recording still gives constructive notice of his interest
c. Tom still has a good title
d. A new deed will have to be issued an recorded

Answer 1

a. Between Tom and Dick, Dick has good title.

Tom has delivered the deed to Dick so Dick has good title; however constructive notice of the ownership change has not been made because Dick recorded the deed in the wrong county. To give constructive notice and obtain the protection such notice provides, Dick should record the deed in the correct county.

Question 2

Jean sold a house to Mary who immediately moved in but failed to record her deed. Jean sold the same house to Paula one week later. Paula immediately recorded her deed and Mary’s deed recorded the following day. Who has a greater claim to the property?

a. Mary because she recorded her deed within a reasonable period of time.
b. Mary because her deed was delivered
c. Mary because she had possession before Paula purchased the property.
d. Paula because she recorded her deed first.

Answer 2

c. Mary because she had possession before Paula purchased the property.

When a property is purchased the purchaser has an obligation to inquire as to the rights of any persons who are in possession of the property. Paula, by not performing proper due diligence, has allowed Mary to have the superior position even though she recorded her deed first. Of course Jean is guilty of fraud and Paula should have a cause of action against her.

Question 3

In the chain of title a patent would have been issued by:

a. The county planning commission
b. A sovereign government
c. The state land office
d. U.S. government patent office

Answer 3

b. A sovereign government

A patent is the document issued by a sovereign government when it is transferring ownership of its original title to land.

Question 4

Which of the following is a person who acquires title to real estate?

a. Grantor
b. Devisee
c. Lessor
d. Vendor

Answer 4

b. Devisee

The party receiving something always ends in EE, so the answer has to be Devisee. A devisee is one who receives real property under a will.

Question 5

Legal title to real estate is transferred by:

a. The owner’s title insurance
b. Recordation of the deed
c. An abstract of title
d. Delivery and acceptance of the deed

Answer 5

d. Delivery and acceptance of the deed

Ownership of real estate is transferred by the delivery and acceptance of the deed. To transfer ownership of real property a deed does not need to be recorded, but to give constructive notice of the transfer it must be recorded.

Question 6

Title is transferred by deed at the time:

a. The deed is executed
b. Of delivery and acceptance
c. Of recording
d. Stated in the grant

Answer 6

b. Of delivery and acceptance

Ownership of real estate is transferred by the delivery and acceptance of the deed. To transfer ownership of real property a deed does not need to be recorded, but to give constructive notice of the transfer it must be recorded.

Question 7

Which of the following deeds WOULD fail to transfer title?

a. A deed to Henry Jones using his stage name “Mr. Magic”.
b. A deed made to Henry or Susan Smith
c. A deed made to Susan Smith and husband
d. A deed mad to Joe smith, ET UX

Answer 7

b. A deed made to Henry or Susan Smith

A valid deed must name a definite Grantee. A deed to Henry or Susan Smith is not definite, as it must transfer ownership to one of them or both of them, but not either of them.

Question 8

The MOST important element in delivery of a deed is:

a. Acknowledgement
b. Intent of grantor
c. Grantee’s signature
d. Physical delivery

Answer 8

b. Intent of grantor

This is a difficult question since physical delivery and acknowledgement are both required in a valid deed. However, if the deed was acknowledged and delivered in a situation where it was NOT the intent of the grantor, such as where fraud or duress are involved, then the deed would not be valid.

Question 9

A deed can be:

a. Transferred
b. Assigned
c. Foreclosed
d. Signed with an “X”

Answer 9

d. Signed with an “X”

A deed cannot be foreclosed, but the ownership of a parcel of property can be foreclosed. A deed cannot be transferred or assigned. A deed must be acknowledged by the grantor, who can make the acknowledgment by placement of a mark such as an “X” in the signature section.

Question 10

With a recorded deed from the present owner of record, the one with the weakest position is:

a. Tenant in possession with nine months left on the lease
b. Painter who is finished paining the house and has not been paid.
c. Party with a prior unrecorded deed who is not in possession
d. Party in possession with a prior unrecorded deed

Answer 10

c. Party with a prior unrecorded deed who is not in possession

The party with the prior unrecorded deed and not in possession of the property will not be successful in claiming ownership and the right to occupancy of the property. The party in possession with a prior unrecorded deed will prevail over the present owner of record because that party is in possession. The tenant would be able to enforce the remaining nine months on the lease and the painter would be able to file a valid mechanic’s lien.

Question 11

The grantor signed a deed but it was never received by the Grantee and not recorded. Which of the following statements is true?

a. The deed was delivered if the grantee was of legal age.
b. The deed was delivered if the grantor’s signature was notarized
c. The deed was delivered when it was signed
d. Ownership was not conveyed

Answer 11

d. Ownership was not conveyed.

A deed must be delivered and accepted for a valid transfer of ownership. Therefore in this question the ownership was not conveyed.

Question 12

A declaration made by a person to a qualified official stating that he freely and voluntarily executed a deed or other instrument is called a:

a. Authorization
b. Execution
c. Acknowledgment
d. Authentication

Answer 12

c. Acknowledgment

Acknowledgment is a formal declaration by a person who executes an instrument that he is freely signing it.

Question 13

When the owner of real estate conveys real property, he is called the:

a. Grantee
b. Grantor
c. Mortgagor
d. Lessor

Answer 13

b. Grantor

The document used to convey ownership of real estate is a deed and the parties on a deed are the grantor and the grantee.

Question 14

All of the following are usual elements in a valid deed EXCEPT the:

a. Grantor’s signature
b. Property description
c. Consideration
d. Grantee’s signature

Answer 14

d. Grantee’s signature

Signature is always required by the grantor no matter what type of deed or how the grantee takes title. If the title is taken as Joint Tenancy, the grantee also must sign the deed. If a married couple takes title as Tenants in Common or as Joint Tenants, they must also sign the deed. Except in those circumstances, a signature of the grantee is not required.

Question 15

The type of deed used to clear a “cloud in title” usually a:

a. Reconveyance deed
b. Special warranty deed
c. Quitclaim deed
d. General warranty deed

Answer 15

c. Quitclaim deed

Quitclaim deeds are used to clear a “cloud in title”. If there is a defect in a title in many cases they can go back to the grantor and correct the defect using a quitclaim deed.

Question 16

A deed that conveys an interest in real property to a grantee beneficiary designated by the owner and that is effective on the death of the owner is a:

a. Quitclaim deed
b. Beneficiary deed
c. Disclaimer deed
d. General warranty deed

Answer 16

b. Beneficiary deed

A beneficiary deed conveys an interest in real property to a grantee beneficiary designated by the owner. The deed must expressly state that it is effective on the death of the owner when the real property interest transfers to the grantee beneficiary.

Question 17

Acquiring title to land by hostile action WOULD relate to:

a. Easement in gross
b. Prescription
c. Adverse possession
d. Eminent domain

Answer 17

c. Adverse possession

Adverse possession is the acquisition of title to real property through the unauthorized occupation of another person’s land and meeting the requirements of open, hostile, notorious and continuous.

Question 18

The difference between prescription and adverse possession is:

a. Title to the property
b. Time only is given to adverse possession
c. Permission is given for prescription
d. Hostile use of the property

Answer 18

a. Title to the property

The requirements for prescription and adverse possession are the same, but in prescription, you have acquired an easement while in adverse possession you acquire ownership (title).

Question 19

Which of the following is a person who acquires title to real estate?

a. Devisee
b. Lessor
c. Vendor
d. Grantor

Answer 19

a. Devisee

The party receiving something always ends in EE, so the answer has to be Devisee. A devisee is one who receives real property under a will.

Question 20

Under the terms of a trust established by will, the trustee was required to sell the property the trust held. The type of deed that was delivered at closing was a:

a. Contact for sale
b. Deed of release
c. Trustee’s deed
d. Deed of trust

Answer 20

c. Trustee’s deed

The deed would most likely be a warranty deed, but is referred to as a trustee’s deed since the grantor is the trustee.

Question 21

Tom leaves property to Ed through his will. When Tom dies Ed receives the property as a:

a. Devise
b. Bequest
c. Demise
d. Legacy

Answer 21

a. Devise

Property inherited through a will is known as a Devise. The one inheriting it is a Devisee and the party that wrote the will is the Devisor. The word Demise has to do with leased property.

Question 22

A codicil is an amendment to:

a. A trust
b. An insurance policy
c. A will
d. A title report

Answer 22

c. A will

A codicil is a written supplement or amendment to a will.

Question 23

“A” leased to “B” for 20 years. One year later “A” died intestate leaving no heirs. Which of the following is true?

a. The lease ended with the death of “A”
b. The state will acquire the property subject to the lease right of “B”
c. The state would acquire the property without the lease.
d. “B” owns the property

Answer 23

b. The state will acquire the property subject to the lease right of “B”

“A” died without a will (Intestate) and with no known heirs so “A’s” property Escheats to the state government. The fact that ownership passes to the state government does NOT void the lease of the property to “B”, so the state acquires the property subject to the lease rights of “B”.

Question 24

James died intestate leaving a mother, a brother, a sister, a son and a granddaughter, who is the daughter of his deceased daughter. Who will receive the estate?

a. The son, mother and granddaughter
b. The son
c. The son and mother
d. The son and granddaughter

Answer 24

d. The son and granddaughter

Under the Laws of Intestate succession, the children of the deceased are the first to inherit the deceased’s property. In this question, the granddaughter inherits half of the estate as a Per Stirpes distribution.

Question 25

Title to real estate that is inherited from a person who died intestate is:

a. A legacy
b. Title by descent
c. A devise
d. Title by bequeath

Answer 25

b. Title by descent

When a person dies without a will (intestate), the property is transferred in accordance with the Laws of Intestate Succession and the heirs will inherit title by descent.