CH 8 - Transfer of Title

Question 1

When a property’s creditors are not fully repaid out of the proceeds of a foreclosure sale, they may make an owner personally liable for the balance due by bringing legal action for a ____________.

Answer 1

Deficiency Judgment

Question 2

When a deed or lien is placed in the public records to make them publicly available, this is _____________.

Answer 2

Providing Constructive Notice

Question 3

Abstract of Title

Answer 3

condensed history of all grants, conveyances, and judicial proceedings affecting the title

Question 4

A property owner sold his house for $280,125. Seller experienced a gain of $48,000. How much will the seller owe in transfer taxes (deed stamps)?

Answer 4

$1037.85

• Round UP to $280,500
• (280 * $3.70) + $1.85 = $1037.85

Question 5

Title of Patent or Patent

Answer 5

the process of conveying title of government land

Question 6

Judicial Sale

Answer 6

the court seizes and sells the property to pay a creditor

Question 7

What is acceptable evidence of marketable title?

Answer 7

title insurance

Question 8

Name the two types of title insurance policies

Answer 8

Mortgagee’s Policy and Owner’s Policy

Question 9

Equitable Title

Answer 9

interest held by buyer under contract of sale

Question 10

Legal Title

Answer 10

granted by deed or will, represents proof of legal ownership of real property

Question 11

Marketable Title

Answer 11

a title to real estate that is free and clear of liens and other title defects

Question 12

Acceptable evidence of Marketable Title is what?

Answer 12

1. Torrens Certificate
2. Title Insurance Policy
3. an abstract and legal opinion

Question 13

General Warranty Deed

Answer 13

this deed is the most common, allows grantee to hold grantor liable if future issues arise

Question 14

Special Warranty Deed

Answer 14

guarantees title only against defects arising during the period of his or her ownership

Question 15

Habendum

Answer 15

to have and to hold

Question 16

Granting Clause

Answer 16

some words of conveyance

Question 17

Testimonium (part of a deed)

Answer 17

buyer does not sign here

Question 18

Purpose of Acknowledgment (deed)

Answer 18

to certify the genesis of the grantor’s signature (notarize)

Question 19

When is transfer by deed effective?

Answer 19

once the valid deed has been delivered and accepted

Question 20

Constructive Notice

Answer 20

gives notice to the general public that a conveyance has been made, accomplished by filing a deed with the county registrar

Question 21

A third party holds title to property on behalf of someone else through the use of this.

Answer 21

deed in trust

Question 22

Real estate that is inherited from a person who died testate is referred to as a ________.

Answer 22

devise

Question 23

Is the signature of a grantee required for a deed to be valid?

Answer 23

No, just their name

Question 24

What is adverse possession?

Answer 24

title is acquired by possessing property without challenge from the owner for an extended period of time

Question 25

What does the granting clause do?

Answer 25

in the Premises paragraph of a deed, conveys rights and privileges of ownership

Question 26

Who pays transfer taxes (deed stamps)

Answer 26

seller