Deed

Question 1

Deed Requirements

Answer 1

Grantor 
Grantee 
Consideration 
Granting clause 
Accurate legal description of property 
Exceptions
Signature of Grantor 
Delivery and Acceptance

Question 2

Adverse Possession

Answer 2

-Obtain Title via: Actual, hostile, exclusive, visible and continuous possession of the property for 15 years

Question 3

Grantor Tax

Answer 3

Paid by Seller

Question 4

Recordation Tax

Answer 4

Paid by Buyer

Question 5

Legal Will

Answer 5

Transfers title of property through inheritance.

• must be in writing
• processed in Probate Court
• Handwritten is valid if two eye witnesses
• Testator of sound mind
• Over 18

Question 6

Real Estate Settlement Agents Act

RESA

Answer 6

RESA
Authorizes licensed Virginia attorneys, title insurance companies and agents, real estate brokers and financial institutions to serve as Settlement Agents
-The settlement agent is made by the buyer

Question 7

Settlement Agent

Answer 7

Obtain a title examination going back at least 60 years

-

Question 8

Correction Deed

Answer 8

Minor errors can be corrected

Question 9

Quiet Title

Answer 9

Court Action to correct a deed via court system

Question 10

Title Report reveals

Answer 10

Title holder of record
Existing lienholders
Easements, covenants and restrictions

Question 11

Chain of Title

Answer 11

History of ownership of property
Traces the historical transfer of ownership from the current owner back to the original owner.
-Not included in standard title search

Question 12

Deed of trust

Answer 12

instrument used to establish collateral in a residential sales transaction
3 parties: borrower, lender (beneficiary) and trustee (third party)

Question 13

Signed Note & Deed of Trust

Answer 13

• Borrower waives the right to a court hearing in cases of foreclosure.
• Initiate a nonjudicial forfeiture
• Both are prepared by a lender.

Question 14

Late Charges

Answer 14

May not exceed 5% of payment due

Question 15

Types of Home Loan

Answer 15

Conforming or Non-Conforming

Question 16

Fannie Mae and Freddie Mac

Answer 16

Conforming
Guidelines set by lender
Regulated by FHFA - sets loan limits

Question 17

VHDA

Answer 17

Created in 1972

• Make housing more affordable to those with low incomes
• Administers the Virginia Housing Trust fund
• Funded by sale of bonds in the private sector
• Builds and operates: residential housing for elderly, nursing care facilities, nursing homes providing medical facilities for elderly

Question 18

Usury Law

Answer 18

regulations governing the amount of interest that can be charged on a loan.

Question 19

Closing Costs

Answer 19

Allowable closing costs:
loan origination fee
title examination
title insurance
recording charges
taxes
hazard insurance, 
mortgage guarantee insurance, 
appraisals
credit reports
surveys 
document preparation
real estate tax service fees
lender inspection 
attorney or settlement agent charges 
flood insurance coverage

Question 20

Deed of Trust Foreclosure

Answer 20

• Decree of court (strict foreclosure)
• Deed in lieu of foreclosure
• Sale by the trustee under the power of sale

Question 21

FHA & VA Loans

Answer 21

FHA and VA loans are classified as unconventional loans because they are backed by the government.

Question 22

Statute of Frauds

Answer 22

Transfer of real estate be in writing. NO oral contract.

Question 23

Metes-and-Bound & Lot-and Block Method

Answer 23

Most common method of describing real estate .

Metes-and-Bound (trees, river, landmarks)

Question 24

Tenants by the entirety

Answer 24

Reserved for married couples

Question 25

Condominium Act and POA Act

Answer 25

• prohibits associations from evicting tenants
• prohibits associations from prohibiting the rental of aunit
• prohibits associations from demanding a copy of the lease.

Question 26

Virginia Department of Professional and Occupational Regulation

Answer 26

DPOR

Question 27

Principal

Answer 27

Principal in a brokerage relationship is either the seller or buyer.