Chap 9 Flashcards
The mortgagor’s title insurance policy is issued for
A)
an amount no greater than the purchase price and is transferable.
B)
the loan balance and is not transferable.
C)
an amount no greater than the purchase price and is not transferable.
D)
the loan balance and is transferable.
The answer is an amount no greater than the purchase price and is not transferable. The mortgagor’s title insurance policy is the owner’s policy.
Which type of title insurance policy is transferable?
A) Owner B) Vendor C) Mortgagor D) Mortgagee
The answer is mortgagee. The mortgagee (lender) policy is transferable.
Which type of lease is based on income from the tenant business?
A) Variable B) Gross C) Percentage D) Net
The answer is percentage. The tenant pays rent based on gross sales received by doing business on the leased property.
A business owner has a five-year variable lease. The first year of the lease calls for rent of $25.50 per square foot based on a beginning index of 188. The index increases to 195 at the beginning of the second year. What is the new rental rate per square foot?
A)
$26.75
B)
$26.70
C)
$26.25
D)
$26.45
The answer is $26.45.
A woman has six months remaining on her lease. She assigns two of the remaining months to another person to use the property while she is on vacation in Europe. What is this called?
A) Sublease B) Partial lease C) Assignment D) Variable lease
The answer is sublease. A sublease is used when the lessee assigns less than the entire property or assigns all of the property for less than the full remaining period.
In which type of deed does the grantor warrant to defend the title solely against acts by the grantor or the grantor’s representative?
A) Bargain and sale B) Special warranty C) General warranty D) Quitclaim
The answer is special warranty. In a special warranty deed, the grantor does not assume responsibility for the title in any way except against the acts by the grantor or the grantor’s representative.
Which type of lien is a specific lien?
A) Vendor's B) Income tax C) Estate tax D) Judgment
The answer is vendor’s. A specific lien affects only a certain specified property. A vendor’s lien is created when the seller (vendor) finances part of the down payment on the purchase.
Requirements for a valid deed do NOT include
A)
a granting clause.
B)
the signature of a competent grantee.
C)
voluntary delivery and acceptance.
D)
a legal description.
B. signature of competent grantee
Which restriction is always a public restriction?
A) Easement B) Restrictive covenants C) Lease by a government agency D) Eminent domain
The answer is eminent domain. Restrictive covenants, easements, and leases are private restrictions; police power, eminent domain, and taxation are government restrictions.
Which alienation is voluntary?
A) Descent B) Escheat C) Will D) Eminent domain
The answer is will. Voluntary alienation includes transfer of property by means of deed or will.
A single person dies without a will. After a period of time, the State of Florida obtained title to the property of the deceased person. What power entitled the state government to acquire the deceased person’s property?
A) Escheat B) Foreclosure rights C) Eminent domain D) Adverse possession
escheat
A husband and wife have title to a property in both names. Which action is required to convey the title to the property?
A) Notarized B) Recorded C) Signed by the grantee D) Signed by the husband and wife Explanation
The answer is signed by the husband and wife. The deed must be signed by the grantor. In this case, the grantor (person conveying title) is the husband and wife. Before a legal document can be recorded, it must be notarized. However, in Florida, deeds are not required to be recorded.
