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Real Estate > Ch. 9 Titles, Deeds, and Ownership Restrictions > Flashcards

Ch. 9 Titles, Deeds, and Ownership Restrictions Flashcards

This chapter concerns the legal instruments and methods used to transfer title to real property. The Chapter also discusses the following concepts regarding title to real property: voluntary and involuntary alienation, title insurance, the two types of notice to title, the essential elements of a valid instrument of conveyance, certain covenants found in deeds, and governmental and private restrictions on ownership.

1
Q

Condense history of title to real property consisting of a summary of the links in the “chain of title” extracted from documents bearing on the title status.

A

abstract of title

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2
Q

Formal declaration before an authorized official, by the person who executed the instrument, that it is a free act.

A

acknowledgement

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3
Q

Information a person has actually learned by reading, seeing, or hearing.

A

actual notice

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4
Q

A method of obtaining title to real property by occupying it in an open and hostile manner contrary to the interests of the owner.

A

adverse possession

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5
Q

The act of transferring ownership, title, or an interest or estate in real property.

A

alienation

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6
Q

Written instrument that serves to transfer the rights or interests of one person to another.

A

assignment

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7
Q

A successive listing of all previous holders of title (owners) back to an acceptable starting point.

A

chain of title

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8
Q

The taking of private real property for a public purpose under the right of eminent domain for a fair price.

A

condemnation

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9
Q

A claim based on the principle of “unjust enrichment”; favors parties who have performed labor or delivered materials or supplies for the repair or building of an improvement to real property.

A

construction lien

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10
Q

constructive notice

The recording of a document or an instrument in the public records designed to give adequate notice to all.

A

constructive notice

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11
Q

A type of conveyance; a written instrument to transfer title to real property from one party to another.

A

deed

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12
Q

A right, privilege, or interest in real property that one individual has in lands belonging to another: a legal right to trespass: right-of-way authorizing access to or over land.

A

easement

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13
Q

An easement that runs with the land and benefits an adjacent parcel of land.

A

easement appurtenant

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14
Q

An easement created by a court of law in cases where justice and necessity dictate it, such as when property is landlocked.

A

easement by necessity

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15
Q

A right acquired by an adverse user to use the land of other, created through a court of law after longtime uninterrupted use.

A

easement by prescription

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16
Q

A type of easement that benefits an individual or business entity and is not related to a specific adjacent parcel, for example, utility easements.

A

easement in gross

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17
Q

The constitutional right given to a unit of government to take private property involuntarily if taken for public use and fair price is paid to the owner.

A

eminent domain

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18
Q

Unauthorized use of another person’s property.

A

encroachment

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19
Q

The beneficial interest in real estate that implies that an individual will receive legal title at a future date.

A

equitable title

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20
Q

Reversion of property to the state when an owner dies without leaving a will or any known heirs.

A

escheat

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21
Q

further assurance
A provision in a deed containing a covenant or warranty to perform any further acts the grantee (buyer) might require to perfect title to the property.

A

further assurance

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22
Q

general lien

A claim that may affect all of the properties of a debtor.

A

general lien

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23
Q

general warranty deed
An instrument of conveyance containing the strongest and most comprehensive promises of further assurance possible for a grantor (seller) to convey to a grantee (buyer).

A

general warranty deed

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24
Q

Party who receives a deed or grant; buyer.

A

grantee

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25
Q

The provision in a deed that specifies the names of the parties involved, the words of conveyance, and a description of the property.

A

granting clause

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26
Q

Party who signs and gives a deed; seller.

A

grantor

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27
Q

An agreement for the tenant to pay a fixed (base) rent and the landlord pays all of the expenses associated with the property.

A

gross lease

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28
Q

An agreement for the tenant to lease the land only and erect a building on the land.

A

ground lease

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29
Q

A provision in a deed to real property that stipulates the estate or interest the grantee is to receive and the type of title conveyed.

A

habendum clause

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30
Q

Without a will.

A

intestate

31
Q

Title insurance issued for the unpaid mortgage amount to protect the lender against title defects.

A

lender’s policy

32
Q

A claim on property for payment of some obligation or debt.

A

lien

33
Q

A pending legal action.

A

lis pendens

34
Q

An agreement for the tenant to pay fixed rent plus property costs such as taxes, insurance, and utilities.

A

net lease

35
Q

A formal statement by an attorney regarding the status of a title after examination of the chain of title.

A

opinion of title

36
Q

Title insurance issued for the total purchase price of the property to protect the new owner against unexpected risks.

A

owner’s policy

37
Q

An agreement for the tenant to pay rent based on the gross sales received by doing business on the leased property.

A

percentage lease

38
Q

The authority of government to protect the property, life, health, and welfare of its citizens.

A

police power

39
Q

A provision in a deed guaranteeing that the buyer may enjoy possession of the property in peace and without disturbance by reason of other claims on the title by the seller or anyone else.

A

quiet enjoyment

40
Q

quitclaim deed
A type of deed that will effectively convey any present interest, claim, or title to real property that the seller (grantor) may own.

A

quitclaim deed

41
Q

A covenant in a deed that warrants that the grantor (seller) holds the property by virtue of a fee simple title and has a complete right to dispose of same. Also known as seizin clause.

A

seisin

42
Q

Claims that affect only the property designated in the lien instruments or agreements.

A

specific liens

43
Q

A lessee leasing a property to a third party for a period of time less than the original lease (also referred to as subletting).

A

sublease

44
Q

Having left a will.

A

testate

45
Q

Evidence of ownership of real property, such as a deed.

A

title

46
Q

A policy of insurance that protects the holder from any loss resulting from defects in the title.

A

title insurance

47
Q

An examination of all of the public records to determine whether any defects exist in the claim of title.

A

title search

48
Q

variable lease

An agreement for the tenant to pay specified rent increases based on a predetermined index (CPI) at set future dates.

A

variable lease

49
Q

warranty forever

A provision in a deed guaranteeing that the seller will for all time defend the title and possession for the buyer.

A

warranty forever

50
Q
  1. Which type of easement gives an electric company the authority to install and maintain electric power lines?
    a. In gross
    b. Prescription
    c. Appurtenant
    d. Implied
A

A

51
Q
  1. Rent is $1,800 per month plus 3 percent of gross sales. The total rent for last month was $2,400. The gross sales for the same month were
    a. $20,000
    b. $24,000
    c. $30,000
    d. $60,000
A

A

52
Q
  1. Courts at various levels have ruled that
    a. constructive notice is superior to actual notice.
    b. actual notice is superior to constructive notice.
    c. neither constructive notice nor actual notice is required.
    d. constructive notice and actual notice have equal legal priority.
A

D

53
Q
  1. A 92-year-old man is being forced from his home because of a governmental taking. The home has been in his family for four generations. What recourse, if any, does he have?
    a. He can file an injunction to stop the taking.
    b. He can pay the delinquent property taxes to prevent the foreclosure.
    c. He may request a condemnation proceeding to protest the amount of compensation being offered by the governmental body.
    He may do all of the above.
A

C

54
Q
  1. For a deed to be valid, a competent
    a. grantor, grantee, and two witnesses must sign the instrument.
    b. grantor and two witnesses must sign the instrument.
    c. grantee and two witnesses must sign the instrument.
    d. grantee only must sign the instrument.
A

B

55
Q
  1. The type or form of deed most commonly used to clear clouds on the title of real property is the
    a. general warranty deed.
    b. special warranty deed.
    c. bargain and sale deed.
    d. quitclaim deed.
A

D

56
Q
  1. If the sale contract does not specify the type of deed to be delivered, the seller is required to provide a
    a. general warranty deed.
    b. special warranty deed.
    c. bargain and sale deed.
  2. quitclaim deed.
A

A

57
Q
  1. The process of taking property under the power of eminent domain is called
    a. escheat.
    b. foreclosure.
    c. condemnation.
    d. voluntary alienation.
A

C

58
Q
  1. The type of deed in which the grantor does not warrant the title in any manner EXCEPT agaisnt the grantor’s acts or the acts of the grantor’s representatives is called a
    a. general warranty deed.
    b. special warranty deed.
    c. bargain and sale deed.
    d. quitclaim deed.
A

B

59
Q
  1. The covent against encumbrances in a deed is designated to guarantee that the
    a. grantor has not encumbered the property in any manner except as noted on the deed.
    b. grantee is responsible for any unpaid encumbrances.
    c. grantee has not encumbered the property.
    d. grantor will not encumber the property.
A

A

60
Q
  1. The purpose of recording a deed is to
    a. comply with real estate license law.
    b. effect the transfer of ownership.
    c. give actual notice of ownership.
    d. give constructive notice of ownership.
A

D

61
Q
  1. In answering questions pertaining to quality of title, real estate licensees are
    a. required to give opinions because of their role as experts.
    b. required to advise prospective buyers to have a lawyer render an opinion or obtain title insurance.
    c. allowed to give their opinions because of their role as experts.
    d. allowed to give their opinions only when specifically asked by the buyer.
A

B

62
Q
  1. The seisin clause in a deed specifies
    a. the type of estate being conveyed.
    b. the improvements being transferred with the land.
    c. the rights reserved by the grantor.
    d. that the grantor actually owns the property and has the right to sell it.
A

D

63
Q
  1. The deed that contains the covenant guaranteeing that the grantor will forever be responsible for warranting title and will defend the title and possession is a
    a. general warranty deed.
    b. special warranty deed.
    c. public patent deed.
    d. bargain and sale deed.
A

A

64
Q
  1. The provision in a deed that names the parties and contains the granting clause is the
    a. premises.
    b. encumbrance clause.
    c. habendum clause.
    d. seisin clause.
A

A

65
Q
  1. An owner placed a condition in the deed that stipulated that a commercial building could NOT be erected on the property until at least the year 2020. This is an example of
    a. police power.
    b. a deed restriction.
    c. subdivision restrictive covenant.
    d. governmental restriction on ownership.
A

B

66
Q
  1. An example of an encumbrance on title to real property does NOT include
    a. an easement.
    b. a deed restriction.
    c. a line.
    d. a premises clause in the deed.
A

D

67
Q
  1. When a lis pendens is filed properly with the county clerk, it becomes a type of
    a. attachment on the subject property.
    b. vendor’s lien.
    c. constructive notice.
    d. easement by prescription.
A

C

68
Q
  1. Which lien is first in priority?
    a. A property tax lien effective on January1, 2011
    b. A special assessment lien certified on December 31, 2010
    c. A first mortgage lien filed on July 15, 2011
    d. A construction lien filed on November 30, 2010
A

A

69
Q
  1. A business has a five-year variable lease for a suite in an office park. The first year of the lease calls for rent of $21.50 a square food based on a beginning index of 189. The index increases to 195 at the beginning of the second year. What is the new rental rate?
    a. $22.18
    b. $22.58
    c. $22.89
    d. $23.05
A

A

70
Q
  1. A married couple signed a contract to purchase a home in a residential subdivision. When the couple had the lot surveyed before closing, they discovered that the contractor had built the neighbor’s garage three inches inside the west boundary of their lot . The garage in its present location is an example of
    a. a deed restriction.
    b. an easement by prescription.
    c. an implied easement.
    d. an encroachment.
A

D

71
Q
  1. When a pathway to a property has been used continuously and without interruption for more than 20 years, it creates an
    a. implied easement.
    b. encroachment.
    c. alienation by adverse possession.
    d. easement by prescription.
A

D

72
Q
  1. Soon after a man’s death a deed was discovered in his desk. The deed is for the man’s home and it deeded the property to a charitable organization. The man is survived by his son Andrew, who discovered the deed. The man died intestate. Based on this information, the house belongs to the
    a. state because the man died intestate
    b. charitable organization because the deed conveyed ownership to it.
    c. legal heir because the deed was never delivered and accepted.
    d. legal heir because the deed was not signed by the grantee.
A

C

73
Q
  1. The owner’s title insurance policy is
    a. issued for an amount no greater than the purchase price of the property and is transferable.
    b. issued for an amount no greater than the purchase price of the property and is not transferable.
    c. a separate policy for the amount of the unpaid balance of the mortgage and is transferable.
    d. a sperate policy for the amount of the unpaid balance of the mortgage and is not transferable.
A

B

74
Q
  1. A retail business rents a space in a mall. The lease calls for a base rent of $1500 a month plus 5 percent of the annual gross sales that exceed $360,000. If the annual gross sales are $472,000, what is the total annual rent for the business?
    a. $7,100
    b. $23,600
    c. $36,000
    d. $41,600
A

B but i think is D

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