Chapter 10 - Title Records

Question 1

Which of the following is acceptable as the evidence of marketable title?

Answer 1

Title Insurance Policy

Question 2

When the title insurance company settles a claim, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is known as

Answer 2

-subrogation

Question 3

Which of the following would be used to clear a defect from the title records?

Answer 3

-Suit to Quiet Title

Question 4

The part of the title insurance policy that sets forth all the encumbrances and defects that will NOT be insured against is called the …

Answer 4

-schedule of exceptions

Question 5

An abstract of title does NOT provide evidence of title unless it is accompanied by …

Answer 5

-Certificate of title

Question 6

The Uniform Commercial Code (UCC) is a commercial law that applies to:

Answer 6

-Personal Property Transactions

Question 7

At closing, the title insurance policy includes all of the following EXCEPT:

Answer 7

-A record of all of the previous owners of the property

Question 8

A written summary of the history of all conveyances and legal proceedings affecting a specific parcel of real estate is called …

Answer 8

-an abstract of title

Question 9

When the preliminary title report reveals the existence of an easement on the property, it indicates that the easement is …

Answer 9

-an encumbrance

Question 10

Generally, if some defect is found in the title to real property, the effect on a sales contract is that …

Answer 10

-the seller has a reasonable time to correct the defect.

Question 11

All of the following are considered evidence of marketable title EXCEPT

• an abstract of title with a legal opinion
• a title commitment or title insurance policy
• a certificate of title by a real estate broker
• a certificate of title by a real estate attorney

Answer 11

-a certificate of title by a real estate broker

Question 12

The recordation of a warranty deed

Answer 12

-protects the interest of the grantee

Question 13

Documents affecting real estate are recorded or filed with the county in which the property is located to

Answer 13

-give constructive notice of the real estate interest

Question 14

A document that projects against hidden risks, such as forgeries and loss due to defects in the title, subject to specific exceptions, is called

Answer 14

-a title insurance policy

Question 15

The body of law that covers such topics as security agreements, financing statements, and bulk transfers is the

Answer 15

Uniform Commercial Code

Question 16

The recording of a deed …

Answer 16

gives constructive notice of the ownership of real property

Question 17

A buyer took delivery of the deed to his new house but forgot to record the deed. Under these circumstances, the …

Answer 17

-buyer’s interest is not fully protected against third parties.

Question 18

The mortgagee purchases a title insurance policy on the property a buyer is pledging as security for the mortgage loan. Which of the following is TRUE?

• The policy is issued for the benefit of the buyer
• The policy guarantees that the buyer’s equity will be protected.
• The amount of coverage is commensurate with the loan amount.
• The amount of coverage increases as the borrowers equity increases.

Answer 18

-The amount of coverage is commensurate with the loan amount.

Question 19

A defect or a cloud on the title may be cured by

Answer 19

-Obtaining a quitclaim deeds from all interested parties.

Question 20

All of the following are true regarding public records EXCEPT

• they give notice of encumbrances
• they establish priority of liens
• they guarantee marketable title
• they provide constructive notice about interest in the property.

Answer 20

-they guarantee marketable title

Question 21

The primary reason a buyer obtains title insurance is …

Answer 21

to ensure that the abstractor has prepared a complete summary of title.

Question 22

Quieting a title refers to

Answer 22

-the removal of a cloud on the title by court action