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Real Estate (NJ) > (Ch. 8) Title And Title Protection > Flashcards

(Ch. 8) Title And Title Protection Flashcards

1
Q
  1. A loan title policy protects:

A) the mortgage only
B) the owner only
C) both the owner and lender
D) neither the owner nor the mortgagee

A

A

The loan policy only covers the lender.

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2
Q
  1. Title insurance premiums are paid:

A) annually
B) once–at the insurance of the policy
C) by the seller, usually
D) monthly

A

B

Title insurance is single-premium insur ance.

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3
Q
  1. The county clerk does which of the following?

A) Confirms the accuracy of the legal description in the deed.
B) Attests to the accuracy of the survey
C) Gives an acknowledgment
D) Enters the document into the public records

A

D

The county clerk enters documents into the records. The person signing provides the acknowledgment.

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4
Q
  1. A mortgage policy of title insurance is purchased by the:

A) broker
B) seller
C) borrower
D) lender

A

C

The mortgage policy protects the lender, but is paid for by the borrower.

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5
Q
  1. Generally, the title insurance coverage extends to hidden and unknown matters:

A) whether or not they are record
B) when they are of record
C) when they are not of record
D) in nine of the above

A

A

Coverage is provided whether recorded or not.

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6
Q
  1. An abstract of title is:

(A) a brief digest of the title to a particular property.
(B) a summary of each deed in a title search. (C) an appraisal of the lands and the improvements.
(D) a summary of all the improvements and encroachments on the prop

A

A

A brief history of title, rarely used today.

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7
Q
  1. Which of the following statements is NOT true?

(A) The mortgagee’s policy protects the lender. (B) The mortgagee’s policy is paid for by the grantee.
(C) The fee policy protects the owner.
(D) Title defects arising after closing are protected

A

D

The title policy will not cover defects which arise after the grantee takes title.

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8
Q
  1. To what does the term “chain of title” refer?

(A) Recording law.
(B) Will beneficiaries.
(C) Title evidence.
(D) A succession of owners.

A

D

It traces the title from the time of the origi- grant and used by the attorney to prepare the opinion of title.

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9
Q
  1. The best evidence of title is provided by:

(A) title search
(B) title insurance.
(C) abstract of title.
(D) warranty deed

A

B

Title insurance protects the holder from any loss suffered because of a title defect.

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10
Q
  1. An owner’s title policy protects:

(A) the owner for as long as he or his heirs own the property.
(B) a subsequent purchaser that the owner sells to so long as the term of the owners policy has not expired.
(C) the mortgagee up to the amount of the loan.
(D) the owner if he receives an assignment of the policy from the previous owner.

A

A

The owner’s policy is not assignable.

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11
Q
  1. Which of the following is NOT an objective of a title search?

(A) Establish relative value.
(B) Verify ownership
(C) Find money encumbrances.
(D) Find non-money encumbrances

A

A

Estimating value is the appraiser’s responsibility.

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12
Q
  1. A title policy insures against:

(A) forgery
(B) unmarketability.
(C) loss arising from lack of access to the insured property.
(D) all of the above.

A

D

All are covered risks.

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13
Q
  1. Title insurance, in terms of coverage from the date of policy issuance is similar to:

(A) a homeowner’s policy
(B) flood insurance
(C) both of the above.
(D) neither of the above.

A

D

Title insurance coverage is retrospective.

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14
Q
  1. To alienate title to property, one:

(A) clouds the title.
(B) transfers ownership of property
(C) must contact the Immigration Department. (D) must be acting voluntarily.

A

B

Alienation is any transfer of title and possession of property. May be voluntary (sale) or voluntary, such as condemna- tion or adverse possession.

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15
Q
  1. Mr. X, a bona fide purchaser for value who records his deed, would take precedence over a grantee with a prior unrecorded deed:

(A) where Mr. X has actual knowledge of the prior unrecorded deed
(B) where the prior unrecorded deed’s grantee has taken possession of the property and was living in a house on the property
(C) where Mr. X had no knowledge of the previous transaction and the prior grantee did not take possession.
(D) under no circumstances.

A

C

In the other cases (A and B) the grantee with the prior unrecorded deed would pre vail.

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16
Q
  1. Documents are entered into the public record by recording them at:

(A tax office.
(B) borough hall.
(C) county seat.
(D) municipal recording office

A

C

Each of New Jersey’s counties has a recording office at the county seat.

17
Q
  1. Constructive notice means that:

(A) all parties with an interest in the property have been notified, by certified or registered mail, of existing defects to title.
(B) if an encumbrance against a title were recorded, but the buyer was not aware of it, he would still be subject to its effects when he became the owner, if it had not been removed prior to purchase
(C) all parties who seek to acquire an interest in real estate are not bound by the information in public records if they choose not to make a search.
(D) All of the above.

A

B

Buyer has an obligation to make a title search and a visual inspection of the property

18
Q
  1. An acknowledgement is given by:

(A) an attorney-at-law
(B) the party signing the instrument.
(C) a notary public.
(D) the registrar of deeds

A

B

The acknowledgment is given “to” the other parties.

19
Q
  1. which of the following has access to the records in the recording offices in each county?

(A) Prospective buyers
(B) The general public.
(C) Prospective lenders
(D) All of the above.

A

D

All records are public information.

20
Q
  1. Actual notice is:

(A) notice that has been received by direct communication, either oral or written.
(B) the same as constructive notice.
(C) recorded notice.
(D) implied notice

A

A

For example, A tells B that he has sold his property to C.

21
Q
  1. Deeds are recorded to provide:

(A) actual notice.
(B) constructive notice.
(C) consummate notice
(D) conspicuous notice.

A

B

Constructive notice is notice given by public records.

22
Q
  1. Constructive notice of a fact is established by:

(A) entering it on public record
(B) acting openly in accordance with the fact (C) direct communication of the fact to each interested party
(D) testifying to the existence of the fact under oath in open court.

A

A

See explanation to th21.

23
Q
  1. Recording an instrument is:

(A) mandatory
(B) permitted only if the instrument is acknowledged
(C) necessary to make it legal.
(D) always free

A

B

Acknowledgement is essential for recording.

24
Q
  1. If A sells a property to B and B takes possession but does not record his deed and subsequently A sells the property to C and C records his deed, who owns the property?

(A) A
(B) B
(C) C
(D) None of the above.

A

B

Possession of property gives constructive notice

25
Q
  1. Which of the following parties is in the weakest position against a claim of title by a stranger?

(A) Holder of warranty deed.
(B) One who holds an unrecorded deed and who does not live on the property
(C) One who holds an unrecorded deed.
(D) One who holds a recorded quitclaim deed to the property

A

B

A quitclaim deed conveys only the grantor’s rights with no warranties of ownership.

26
Q
  1. Which of the following statements is true?

(A) Recording a deed guarantees its validity.
(B) In New Jersey, recording offices for eligible instruments are located in each of the 566 municipalities.
(C) Month-to-month leases are usually recorded
(D) Recording of documents provides constructive notice.

A

D

Recording does not guarantee validity, only gives constructive notice.

27
Q
  1. Which of the following statements is NOT true?

(A) An instrument cannot be recorded unless it is in English or accompanied by an English translation.
(B) Recording offices for eligible instruments are located in each of the 21 New Jersey counties.
(C) Month-to-month leases are usually recorded.
(D) Recording of documents provides constructive notice

A

C

Month-to-month leases are not recorded.

28
Q
  1. Recording a deed is to the greatest benefit of the

(A) grantor.
(B) public trustee.
(C) attorney.
(D) grantee.

A

D

The grantee (buyer is protected by recording

29
Q
  1. In real estate transactions in New Jersey all of the following documents are usually recorded in the county clerk’s office EXCEPT a(n):

(A) deed.
(B) offer to purchase
(C) mortgage.
(D) purchase money mortgage.

A

B

Purchase and sale contracts usually are not recorded.

30
Q
  1. The recording of a deed

(A) guarantees title
(B) insures ownership.
(C) verifies title.
(D) constitutes constructive notice of ownership

A

D

Recording gives constructive notice, but does not guarantee or insure title.

Real Estate (NJ) (30 decks)

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