FINAL

Question 1

All parties must sign an ___ to change a contract.

Answer 1

Amendment

Question 2

What is a package mortgage?

Answer 2

One loan from one lender for MULTIPLE items

Question 3

What is an improvement?

Answer 3

Value added to the raw land

Question 4

What is another word for transferring title?

Answer 4

Conveying title

Question 5

The ___ insures a lender’s interest in the property.

Answer 5

Mortgagee’s title policy

Question 6

List the 3 types of agency from LEAST POWER TO MOST POWER.

Answer 6

LEAST: special (real estate agent)
MIDDLE: general: property manager
MOST POWER: universal (attorney in fact)

Question 7

What is a consideration?

Answer 7

Something of value (contracts)

Question 8

4 elements required for a valid contract

Answer 8

1. Mutual agreement (offer and acceptance, reality of consent, mutual assent, mutual consent, meeting of the minds)
2. Consideration
3. Legally competent parties
4. Lawful purpose (legality of object, legal object)

Question 9

List the 5 covenants typically included in a general warranty deed.

Answer 9

1. Covenant of seizin
2. Covenant of quiet enjoyment
3. Covenant against encumbrances
4. Covenant of further assurances
5. Covenant of warranty forever

Question 10

Which deed covenant warrants that the grantor is the owner and posses of the property and has the interest or estate he purports to convey?

Answer 10

Covenant of seizin

Question 11

Which deed covenant warrants that the title is good against claims by others?

Answer 11

Covenant of quiet enjoyment

Question 12

Which deed covenant warrants that a property is free of encumbrances (except as specified)?

Answer 12

Covenant against encumbrances

Question 13

Which deed covenant warrants that the grantor will perform whatever else is needed to make the title good?

Answer 13

Covenant of further assurances

Question 14

What deed covenant warrants that the grantor will forever defend the rights of the grantee?

Answer 14

Covenant of warranty forever