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Real Estate > Chapter 9 > Flashcards

Chapter 9 Flashcards

1
Q

The title to real estate passes when a valid deed is:

A

Delivered and accepted

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2
Q

The primary purpose of a deed is to:

A

Transfer title rights

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3
Q

A special warranty deed differs from a general warranty deed in that the grantor’s covenant in the special warranty deed:

A

Applies only to a definite limited time

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4
Q

The law that requires transfer of real property ownership to be in writing is the:

A

Statute of frauds

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5
Q

Which of the following deeds contain no expressed or implied warranties?

A bargain and sale deed
A quitclaim deed
A warranty deed
A grant deed

A

A quitclaim deed

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6
Q

The reversion of real estate to the county because of its lack of heirs or other persons legally entitled to own the property is:

A

Escheat

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7
Q

Fred bought acreage in a distant county, never went to see it, and did not use it, although he regularly paid the real estate taxes on it. Lucy moved her mobile home onto Fred’s property, drilled a well for water, and lived there for many years. Lucy may have become the owner of the acreage if she has complied with the state laws regarding:

A

Adverse possession

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8
Q

When the preliminary title report reveals the existence of an easement on the property, it indicates that the easement is a(n):

A

Encumbrance

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8
Q

In which of the following situations would a quitclaim deed be the most appropriate type of deed to use?

To convey a marketable title
To release a nominal real estate interest
To remove a cloud on title
To warrant that a title is valid

A

To remove a cloud on title

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9
Q

Two people own a farm as joint tenants with right of survivorship. One of the tenants dies intestate. The other tenant now owns the farm:

A

In severalty

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10
Q

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

A

Trust deed

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10
Q

A bill of sale is used to transfer the ownership of:

A

Personal property

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11
Q

A written summary of the history of all conveyances and legal proceedings affecting a specific parcel of real estate is called a(n):

A

Abstract of title

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12
Q

Which of the following best describes the covenant of quiet enjoyment?

The grantor promises to obtain and deliver any instrument needed to make the title

The grantor guarantees that if the title fails in the future, he or she will compensate the grantee

The grantor warrants that he or she is the owner and has the right to convey title to the property

The grantor guarantees that the title will be good against the title claims of third parties

A

The grantor guarantees that the title will be good against the title claims of third parties

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13
Q

All of the following would be considered evidence of marketable title:

A

Abstract of title with a legal opinion, Title commitment or title insurance policy, Certificate of title by a real estate attorney

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14
Q

All of the following would be considered evidence of marketable title EXCEPT a(n):

A

Certificate of title by a real estate broker

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15
Q

A document that protects against hidden risks such as forgeries and loss due to defects in the title, subject to specific exceptions, is called a(n):

A

Title insurance policy

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16
Q

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

A

The buyers Interest is not fully protected against third parties

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17
Q

Title to real estate that is inherited from a person who died testate is referred to as a:

A

devise.

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18
Q

Which of the following documents is signed by the owner of the real estate?

A gift deed
A trustee’s deed
A re-conveyance deed
A tax deed

A

A gift deed

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19
Q

All of the following are required for a deed to be valid:

A

date, legal description, name of the grantee.

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20
Q

All of the following are required for a deed to be valid EXCEPT the:

A

signature of the grantee.

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21
Q

Which of the following is LEAST LIKELY to be found in a deed?

The signatures of the grantor(s).
The age of the grantor(s).
The marital status of the grantor(s).
The granting clause.

A

The age of the grantor(s).

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22
Q

What is the purpose of the acknowledgment by a notary public on a deed?

A

To show the genuineness of the grantor’s signature

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23
Q

Phil owns a one-quarter undivided interest in a parcel of land, and he wants his interest transferred to his sister Elaine. As a general rule, which of the following actions will transfer Phil’s undivided interest out of his name?

A

The delivery of the deed during the owner’s lifetime

24
Q

A valid will devises the decedent’s real estate after the payment of all debts, claims, inheritance taxes and expenses through the:

A

court action known as probate.

25
Q

When the grantor does not wish to convey certain property rights, he or she:

A

may note the exceptions in the deed of conveyance.

26
Q

All of the following are true about adverse possession EXCEPT:

A

the person taking possession must compensate the owner at the end of the possessory period.

26
Q

All of the following are true about adverse possession:

A

the person taking possession of the property must do so without its owner’s consent, occupancy of the property must be continuous over a specified period of time, the person taking possession may become the owner of the property.

26
Q

The condemnation of private property for public use is exercised under the government right of:

A

eminent domain.

26
Q

A deed must be signed by the:

A

Grantor

27
Q

A single person owned a parcel of land. After the owner’s death the probate court determined the distribution of the land in accordance with the states’ statutes. This person:

A

died intestate

28
Q

The type of deed in which the granting clause states “convey and warrant’ is a:

A

general warranty deed.

29
Q

Which of the following is an example of involuntary alienation?

Selling a property to pay off debts

Giving a piece of land to the zoo

Having a piece of land sold for delinquent taxes

Letting another person plant crops on an unused portion of a piece of land

A

Having a piece of land sold for delinquent taxes

30
Q

What will happen to the real estate if the deceased owner did not write a will and has no heirs?

A

The ownership will escheat.

31
Q

Under the terms of a trust established by a will, the trustee is required to sell the real estate the trust holds. The deed that will be delivered at settlement is a:

A

trustee’s deed.

32
Q

All of the following are required under Illinois law for a deed to be valid:

A

grantee’s present address, grantor’s signature, recital of consideration.

33
Q

All of the following are required under Illinois law for a deed to be valid, EXCEPT:

A

grantee’s signature.

34
Q

Which of the following is essential to the validity of an Illinois deed?

Acknowledgment
Seal
Delivery
Probate

A

Delivery

35
Q

How is the state transfer tax liability due in Illinois computed?

A

In units of $500, at the rate of fifty cents for each unit or fraction of a unit

36
Q

What is the period of uninterrupted possession required to claim title by adverse possession in Illinois?

A

20 years

36
Q

Which of the following best describes proof of payment for transfer taxes?

The Real Estate Transfer Declaration form

The Exemption Statement required for transfers of real property conveyed by gift or under a tax exemption prior to recording

The form required for transfers under the Illinois Affordable Housing Act

A Torrens document, no longer required

A

The Real Estate Transfer Declaration form

37
Q

Which of the following types of wills is recognized in Illinois?

Holographic
Nuncupative
Intestate
Handwritten and witnessed

A

Handwritten and witnessed

38
Q

James died, leaving an estate of $150,000 in cash and two parcels of real estate. In his final will, James completely disinherited his wife. James is survived by his spouse and one child. If James’s wife elects to renounce the will, how much will she receive under Illinois statute?

A

$50,000, plus one-third of each parcel of real estate.

39
Q

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

A

subrogation.

40
Q

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

A lis pendens
An estoppel certificate
A suit to quiet title
A writ of attachment

A

A suit to quiet title

41
Q

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

A

give constructive notice of the real estate interest.

42
Q

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

A

schedule of exclusions

43
Q

The recorded history of matters that affect the title to a specific parcel of real property is its:

A

abstract of title.

44
Q

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

A

the seller has a reasonable time to correct the defect.

45
Q

The buyer purchases a title insurance policy on the property the 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 borrower’s equity increases.

A

The amount of coverage is commensurate with the loan amount.

46
Q

The best assurance of good title that a real estate purchaser can obtain is a(n):

A

title insurance policy.

47
Q

An outstanding claim or encumbrance which, if valid, would impair an owner’s title is referred to as:

A

cloud on the title.

48
Q

All of the following would give constructive notice EXCEPT:

A

an unrecorded mechanic’s lien.

49
Q

What is the major difference between the owner’s title policy and the mortgagee’s title policy?

A

The owner’s policy covers the sale price of the property, while the mortgagee’s policy covers only the loan amount.

50
Q

All of the following would give constructive notice:

A

recording documents at the court house, legal notice in the newspaper, physical possession of the property.

51
Q

All of the following are true regarding title insurance EXCEPT:

A

the owner’s policy covers both the borrower and the lender.

52
Q

All of the following are true regarding title insurance:

A

the title insurance premium is paid in one payment, the title insurance policy would protect against forgery, the mortgagee’s policy decreases as each mortgage payment is made.

53
Q

Which of the following BEST describes a chain of title?

A condensed history of title ownership

Evidence of title

A list of successive owners of the property up to the present

A marketable title

A

A list of successive owners of the property up to the present

54
Q

A normal Illinois title search goes back how far?

A

40 years

Real Estate (22 decks)

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