Chapter 9 Flashcards
A deed must:
A. Be in writing
B. Be signed by the seller
C. Be delivered by the seller and accepted by the buyer
D. All of the above
D. All of the above.
A deed must be in writing, be signed by the seller, be delivered by the seller and accepted by the buyer. A deed is not required to be recorded it to be a valid deed..
The Texas Real Estate Commission contract forms call for the title to be delivered by a:
A. Quitclaim Deed
B. Special Warranty Deed
C. General Warranty Deed
D. Bargain and Sale Deed
C. General warranty deed.
The General Warranty Deed is the best form of deed used in Texas.
When working with a prospect, the property manager should:
A. Ask questions
B. Listen
C. Provide what the prospect needs and wants
D. All of the above
D. All of the above.
The property manager should ask questions, listen, and provide what the prospect needs and wants.
A quitclaim deed is most often used to:
A. Transfer ownership of the property being sold with the One to Four Family Contract
B. Transfer interest in real property
C. Transfer ownership when the property is a gift
D. Enforce an insurance claim
B. Transfer interest in real property.
A quitclaim deed is a legal instrument which is used to transfer interest in real property. The entity transferring its interest is called the grantor, and when the quitclaim deed is properly completed and executed, it transfers any interest the grantor has in the property to a recipient, called the grantee.
The term “for $10.00 and love and affection” is often used in the:
A. Quitclaim Deed
B. Gift Deed
C. General Warranty Deed
D. Bargain and Sale Deed
B. Gift deed. It is the consideration in the deed. The sales price is never stated in the deeds in Texas. Consideration is always stated “for ten dollars and other good and valuable consideration” or a similar statement. A gift deed may use the term “for $10 and love and affection.”
Bob and Jane wanted to buy the vacant lot next to their home and finance the home and the lot together. The type of mortgage used to do this is a/an: A. Package mortgage B. Blanket mortgage C. Construction loan D. Interim loan
B. Blanket mortgage.
A blanket mortgage covers more than one property as in the house and the vacant lot. A package mortgage covers real estate and personal property.
There are two types of title policies. The one for the lender is called a/an: A. Owner’s policy B. Seller’s policy C. Mortgagee’s policy D. Mortgagor’s policy
C. Mortgagee’s policy.
The mortgagee is the lender, and the mortgagor is the borrower.
When the deed is recorded, it will be recorded:
A. At the county clerk’s office in the county in which the property is located
B. In all counties in Texas
C. In the federal clerk’s office
D. At the title company and lender’s office
A. At the county clerk’s office in the county in which the property is located.
Each county in Texas has a county clerk’s office and all documents concerning property in that county are recorded in that office
The lender was required to make disclosures about the loan to Bob and Jane. The lender disclosed:
A. The amount to be financed
B. The APR
C. The total amount of the finance charged over the life of the loan
D. All of the above
D. All of the above. The APR is the Annual Percentage Rate. It includes the interest and other costs of the loan.
The name of the seller is not required to be in the deed.
A. True
B. False
B. False.
Deeds are fairly short documents.
A. True
B. False
A. True
A deed must be in writing and signed by the seller.
A. True
B. False
A. True
A deed must be in writing and signed by the buyer.
A. True
B. False
B. False
Deeds are the legal documents that transfer ownership of real property interests from one party to another.
A. True
B. False
A. True
A deed is not required to have a legal description.
A. True
B. False
B. False
If any of the four unities of a joint tenancy is missing, the joint tenancy becomes ineffective.
A. True
B. False
A. True
The granting clause would contain such words as “grant, bargain and sell,” “remise, release, and quitclaim,” “grant,” and “convey and warrant.”
A. True
B. False
A. True
The “subject to” clause would be used to reserve mineral rights, royalties, or easements for the seller’s own use.
A. True
B. False
A. True
If the deed is a warranty deed, it will contain a warranty clause.
A. True
B. False
A. True
The deed is not required to be delivered by the seller and accepted by the buyer.
A. True
B. False
B. False
General warranty deed = Covenant of seisin and the covenant against encumbrances
Special warranty deed = Uses the words ‘remise, release, and convey’ in the granting clause
Correction deed = Used to correct a mistake in a previous deed;
Gift deed = Is used when a property is not a purchase;
Deed in trust = Used to deliver ownership of a property at some future date;
Title = The right or claim to property;
1836 = The General Land Office was established;
Any person from whom one is descended = Ancestor;
Buyer = Grantee;
Seller = Grantor
True
General Warranty Deed is:
A The highest best form of deed
B required on 1-4 family contract
C protects you from the day of closing to the sovereignty of the soil
D all of the above
D all of the above
Sovereignty of the soil means no one in the past can come back and claim it your land.
A True
B False
A True
The habendum clause often follows the granting clause and states the interest being conveyed, Fee Simple, Life Estate, or Defeasible
Fee.
A True
B False
A True
A general warranty deed also typically includes the following:
A covenants of title:
B the covenant of Seisin and the
C covenant against encumbrances.
D all of the above
D all of the above
Special Warranty Deed is generally used by builder.
A True
B False
A True
Quitclam Warranty conveys or transfers whatever interest if any and:
A no guarantees
B cure title issues
C No lender will give you money
D All of the above
D All of the above
A GIFT DEED is sometimes used when property is given as a gift and is not a purchase. A gift deed is created by using the words “love and affection” as the consideration for the deed.
A True
B False
A True
A GIFT DEED is sometimes used when property is given as a gift and is not a purchase. A gift deed is created by using the words “love and affection” as the consideration for the deed.
A True
B False
A True
All documents concerning real estate can be recorded at the county clerk’s
office in the county in which the property is located.
A True
B False
A True
ABSTRACT OF TITLE An abstract of title is a condensed historical summary of all
the documents that have been recorded affecting the title of a
property.
A True
B False
A True
PROPERTY ABSTRACT A property abstract is a collection of legal documents that chronicle
transactions associated with a particular parcel of land.
A True
B False
A True
INTESTATE A person who dies without a will has died intestate. All of their property, both
real and personal will go to their heirs.
A True
B False
A True
Holographic will – written in the hand of the testator; in many jurisdictions, the signature and the material terms of the holographic will must be in the handwriting of the testator.
A True
B False
A True
CODICIL – (1) amendment to a will; (2) a will that modifies or partially revokes an existing or earlier will
A True
B False
A True
DEVISE – testamentary gift of real property
A True
B False
A True
PROBATE – legal process of settling the estate of a deceased person
A True
B False
A True
TESTATE – person who dies having created a will before death
A True
B False
A True
INHERITOR – a beneficiary in a succession, testate or intestate
A True
B False
A True
Fee simple estates may be either fee simple absolute or defeasible
A True
B False
A True
If the person named in the will cannot serve,
refuses to serve, or no one is named in the will, the court will appoint an administrator.
A True
B False
A True
Tenancy in common is a form of concurrent estate in which each owner, referred to as a tenant in common, is regarded by the law as owning separate and distinct shares of the same property. By default, all co-owners own equal shares, but their interests may differ in size.
A True
B False
A True
Tenants in common have no right of survivorship, meaning that if one tenant in common dies, that tenant’s interest in the property will be part of his or her estate and pass by inheritance to that owner’s devisees or heirs, either by will, or by intestate succession.
A True
B False
A True
Four Unities of Joint Tenancy are Time, Title, Interest and Possession (TTIP)
A True
B False
A True
If any one of the four Unities of Joint Tenancy of these elements is missing (time, title, interest and possession) the joint tenancy is ineffective, and the joint tenancy will be treated as a tenancy in common in equal shares.
A True
B False
A True
Adverse possession occurs when one person takes possession of another person’s land and holds that possession for a long enough period of time to take ownership of the property
A True
B False
A True
Under Texas title insurance, a loan policy covers up to the amount of the principal on your loan.
A. True
B. False
A. True
The Texas Statute of Frauds requires all leases that are for over one year be in writing to be enforceable.
A. True
B. False
A. True
When did Spain make the first formal claim n Texas lands?
A. 1504
B. 1540
C. 1716
D. 1731
B. 1540
For outright real estate purchases, the habendum clause states that the property is transferred with restrictions.
A. True
B. False
B. False
The county clerk is an appointed position.
A. True
B. False
B. False
Involuntary alienation is when property is taken against an owner’s wishes.
A. True
B. False
A. True
Researching the chain of title is among the tasks performed by a real estate broker when a buyer signs a contract to purchase a property.
A. True
B. False
B. False
Which deed guarantees clear title back to the Spanish land grants?
A. General Warranty Deed
B. Special Warranty Deed
C. Bargain and Sale Deed
D. Quitclaim Deed
A. General Warranty Deed
A lot and block description describes the property by locating it within the public surveying system.
A. True
B. False
B. False.
A metes and bounds description (most often used for non-subdivision property) describes the property by locating it within the public surveying system. The boundaries of the property are described by working around a parcel of real estate in sequence, starting with a point of beginning. Lot and block descriptions are most often associated with subdivisions.
The habendum clause often follows the granting clause and states the interest being conveyed such as: A. Fee Simple Estate B. Defeasible Fee Estate C. Life Estate D. All of the above
D. All of the above
A quitclaim deed:
A. Transfers whatever ownership interest a grantor has in a particular property
B. Offers two warrantees on the property
C. Refers to a minor child’s interest in a property
D. Is the highest and best deed used in Texas
A. Transfers whatever ownership interest a grantor has in a particular property
The transfer of ownership without the owner’s permission is:
A. Voluntary alienation
B. Involuntary alienation
C. Ownership
D. Separate property
B. Involuntary alienation
The lender is required to disclose the closing cost of the loan to the borrower. The form used to do this is:
A. The Good Faith Estimate because the home was built before 2015
B. The HUD One Settlement Statement because it has been used for over 30 years
C. The Loan Estimate because the loan originated after 2015
D. All of the above
C. The Loan Estimate because the loan originated after 2015
The sales price of the home is $450,000 and the Roberts are making a $150,000 down-payment. They will be required to purchase Private Mortgage Insurance if they are making less than a 20% down payment. Will they be required to have PMI?
A. No, because they are making more than a 20% down-payment.
B. No, because the home cost less than $450,100.
C. Yes, because it is a good idea to always mortgage insurance.
D. Yes, because the down-payment is less than 20%.
A. No, because they are making more than a 20% down-paymen
