Module 7 Quiz Flashcards
What are the 5 requirements for an adverse possession land transfer?
- Open (the possession and use is obvious to everyone)
- Notorious (others know about it)
- Continuous (possession and occupation)
- Hostile (without the consent of the true land owner)
- Adverse (to the true owner’s right of possession)
The Federal government receives a portion of the real estate taxes paid by the property owner.
True
False
False
When real property is purchased in an agreement between two parties, what best identifies the purpose of a sales contract that is written?
A) It serves as a receipt for the earnest money paid, and it provides written evidence of the agreement the parties are bound to honor.
B) It provides written evidence identifying the parties to the agreement.
C) It serves as a receipt for the earnest money paid only.
D) It conveys the rights of the property from one party to another.
A) It serves as a receipt for the earnest money paid, and it provides written evidence of the agreement the parties are bound to honor.
An agreement that is presumed to exist because of the parties’ actions is called an implied contract. In contrast, an agreement that is put into words (spoken or written) is what type of contract?
A) forbearance contract
B) unilateral contract
C) legal purpose contract
D) express contract
D) express contract
A tenant has an ice cream shop in a shopping mall and pays $2,000 per month plus 4% in overage rent based on gross sales after the first $100,000. This is an example of a(n) ________________ lease.
A) overage
B) index
C) revaluation
D) percentage
D) Percentage lease
Which deed form is often used to clear a title defect?
A) bargain and sale deed
B) quitclaim deed
C) general warranty deed
D) special warranty deed
B) quitclaim deed
Which of the following types of deed would most likely be used in a tax forfeiture sale?
A) bargain and sale deed
B) quitclaim deed
C) warranty deed
D) special warranty deed
A) bargain and sale deed
Some years ago, Jill and her sister Joanna owned land together. The sister gave her rights to Joanna who then married and took possession of the property. Joanna and her husband later sold the property, and Jill was
required to provide a deed conveying her interest in the property. What type of deed would Jill provide in this situation?
A) special warranty deed
B) general warranty deed
C) bargain and sale deed
D) quitclaim deed
D) quitclaim deed
Jensen has a sales contract on a property, but it does not state the legal description and it’s not signed by the seller. The contract is:
A) void.
B) implied.
C) unilateral.
D) valid.
A) void.
a contract must have all 5 elements, otherwise, it’s considered void
An appraiser was hired to assist a tenant and landlord in deciding the rent adjustment for an existing lease that stipulates that the rent be periodically adjusted to prevailing market conditions. What best describes this type of lease?
A) This is a stepup lease.
B) This is an index lease.
C) This is a percentage lease.
D) This is a revaluation lease.
D) This is a revaluation lease.
When a party conveys whatever interest he or she has with no warranties, the type of conveyance used is called a:
A) special warranty deed.
B) quitclaim deed.
C) bargain and sale deed.
D) general warranty deed.
B) quitclaim deed.
An option agreement is a _____ type of contract
unilateral
The initial payment to bind a sales contract is called ___ money.
earnest
Parties to a valid contract must enter the agreement voluntarily to satisfy the element of _____
consent
A contract where the seller acts in the role of a lender is called a ______
land contract (aka contract for deed or insallment (sale) contract)
In a _____ lease, the tenant pays a fixed rent and the landlord pays the property’s operating expenses.
gross
In a leased property, the landlord has a _____ interest
leased fee
The involuntary transfer process by which a party takes possession and use of another’s land over a period of years is known as ____
adverse possession
The type of deed that provides all of the covenants to warrant title is known as a _______.
general warranty deed
A tenant has an ice cream shop in a shopping mall and pays $2,000 per month plus 4% in overage rent based on gross sales after the first $100,000. This is an example of a ______ lease.
percentage
What are the 5 elements of a valid contract?
1) voluntary (consent)
2) an agreement or promise (offer & acceptance /meeting of the minds)
3) legally competent parties
4) legal consideration given
5) legal act
The grantor provides two covenants: 1) The grantor
received title to the property; 2) The grantor and his heirs will defend title to the lands against legal claims created by the actions or omissions of the grantor or his heirs. What type of deed is this?
special warranty deed
A covenant of warranty inserted in a deed that binds
the grantor and heirs to defend the title conveyed to the grantee and his or her heirs against the lawful claims of all persons.
general warranty deed
The grantor conveys any interest held in the property to the grantee without warranty of title. Offers the least protection to the buyer. It is often used to clear a defect in the title when someone is thought to have an interest or right in a particular property
quitclaim deed
The grantor conveys the property but does not
guarantee clear title; this is used by court officials and fiduciaries to convey property they hold by force of law but to which they do not hold title. It is also used in foreclosure and tax sales. Title insurance is recommended.
bargain and sale deed
