Legal Aspects of Real Estate: Q9/Chp 21-23

Question 1

1) A(n) ________ is a written statement which presents an accurate, factual representation of title to the property being acquired, encumbered or leased.
a. preliminary title report
b. property profile
c. abstract of title
d. None of the above.

Answer 1

c. abstract of title

Question 2

2) Title insurance is the means by which a title insurance company ________ a person who acquires an interest in real estate against a monetary loss caused by an encumbrance on title.
a. holds harmless
b. reimburses
c. indemnifies
d. All of the above.

Answer 2

d. All of the above.

Question 3

3) A title insurance policy will cover monetary losses stemming from:
a. encumbrances listed as excluded or excepted from coverage.
b. encumbrances known to exist when the policy was issued.
c. encumbrances not listed as excluded or excepted from coverage, and unknown to the insured individual.
d. All of the above.

Answer 3

c. encumbrances not listed as excluded or excepted from coverage, and unknown to the insured individual.

Question 4

4) ________ of a title insurance policy identifies the insured, the property, the vesting, the dollar amount of coverage, the premium paid and the recording.
a. Schedule A
b. Schedule B
c. Schedule C
d. The insuring clause

Answer 4

a. Schedule A

Question 5

5) _______ are provisions added to title insurance policies to cover losses due to conditions, covenants and restrictions (CC&Rs) violations, mechanic’s liens, and the effects of inflation.
a. Endorsements
b. Equitable subordination clauses
c. Right of way easements
d. Exceptions

Answer 5

a. Endorsements

Question 6

6) A(n) _______ owner’s title insurance policy insures only against recorded encumbrances and contains a list of pre-printed policy exceptions.
a. California Land Title Association (CLTA)
b. American Land Title Association (ALTA) owner’s extended coverage policy
c. ALTA residential policy
d. Standard Title Association (STA)

Answer 6

a. California Land Title Association (CLTA)

Question 7

7) A(n) _______ title insurance policy insures against recorded encumbrances and offrecord matters.
a. California Land Title Association (CLTA)
b. American Land Title Association (ALTA)
c. Standard Title Association (STA)
d. All of the above.

Answer 7

b. American Land Title Association (ALTA)

Question 8

8) The criteria for perfecting ownership by an adverse possession includes:
a. possession for at least two years within the last five years.
b. payment of mortgage principal and interest for at least three years.
c. payment of rent.
d. actual, notorious and open possession.

Answer 8

d. actual, notorious and open possession.

Question 9

9) ________ is an adverse possession claim of ownership based on a written instrument and is held by the individual in possession of the property.
a. Color of title
b. Claim of right
c. Easement by possession
d. Both a. and b.

Answer 9

a. Color of title

Question 10

10) An adverse possessor must have occupied a property for at least ______ before they will be able to acquire title through adverse possession.
a. one year
b. two years
c. five years
d. six years

Answer 10

c. five years