Quiz Legal aspects 4

Question 1

A(n) _____ is a written statement which presents an accurate, factual representation of title to the property being acquired,encumbered or leased.

Answer 1

abstract of title

Question 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.

Answer 2

holds harmless.
reimburses.
indemnifies

Question 3

A title insurance policy will covermonetary losses stemming from:

Answer 3

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

Question 4

________ of a title insurance policy identifies the insured, the property, the vesting, the dollar amount of coverage, the premium paid and the recording.

Answer 4

Schedule A

Question 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 effect of inflation.

Answer 5

Endorsements

Question 6

A(n) _____ owner’s title insurance policy insures only against recorded
encumbrances and contains a list of pre-printed policy exceptions.

Answer 6

California Land Title Association (CLTA)

Question 7

A(n) ______ title insurance policy insures against recorded encumbrances and off- record matters.

Answer 7

American Land Title Association (ALTA)

Question 8

The criteria for perfecting ownership by an adverse possession includes:

Answer 8

actual, notorious and open possession.

Question 9

_______is an adverse possession claim of ownership based on a written instrument and is held by the individual in possession of the property.

Answer 9

Color of title

Question 10

An adverse possessor must have occupied a property for at least _______ before they will be able to acquire title through adverse possession.

Answer 10

five years

Question 11

A transmutation must be _______ to be effective against persons relying on the record title.

Answer 11

written and recorded

Question 12

_______ may be used to authorize one spouse to manage and control community property.

Answer 12

A revocable trust inwhich one spouse is thenamed trustee.
A power of attorney.
A limited partnership

Question 13

A revocable inter vivos (living) trust benefits real estate owners by:

Answer 13

distributing the owner’s estate without resorting to probate proceedings.

Question 14

A(n) _____ is required to establish a viable inter vivos (living) trust.

Answer 14

Declaration of Trust

Question 15

A ______ is a business which acts as an executor, administrator, guardian or conservator of estates, or as assignee, receiver, depositary or trustee by the appointment of the court or for any purpose permitted by law.

Answer 15

trust business

Question 16

Adverse tax consequences make ______ ownership and vesting of rental real estate infrequent.

Answer 16

corporate

Question 17

The conveyance of a co-owner’s TIC interest to another person conveys:

Answer 17

interaction and coordinated conduct

Question 18

The conveyance of a co-owner’s TIC interest to another person conveys:

Answer 18

equitable ownership of the property.

Question 19

The alienation of property refers to its:

Answer 19

sale..
further encumbrance..
Lease for a period exceeding one year.

Question 20

When a co-owner of investment real estate is classified by the Internal Revenue Service (IRS) as a partner, the real estate is considered to be owned by:

Answer 20

a tax partnership

Question 21

_____ is the right of surviving joint tenants or a spouse to succeed to the entire interest of the deceased co-owner.

Answer 21

The right of survivorship

Question 22

A surviving spouse with an uncontested claim to sole ownership needs to wait _______
before they may clear title in their name and sell, lease or encumber the property.

Answer 22

40 days

Question 23

The creation of a joint tenancy traditionally requires the conveyance of the four unities of:

Answer 23

interest, title, time and possesion.

Question 24

All property acquired by a couple or by either spouse during marriage is automatically considered ______, unless otherwise specified.

Answer 24

community property

Question 25

Both spouses need to consent to the _____ of community property

Answer 25

All of the above.

Question 26

If a spouse sells, leases or encumbers real estate without the consent of the other spouse, the nonconsenting spouse has from the recording to set aside the transaction.

Answer 26

one year

Question 27

A purchaser’s lien may include:

Answer 27

the amount of payments made on the purchase price.

Question 28

The moment a buyer enters into a purchase agreement with a seller to acquire property, the buyer has _____ the seller’s property.

Answer 28

an equitable ownership interest in

Question 29

The priority of a purchaser’s lien on title is set as of the date the buyer is given possession under the purchase agreement, called the:

Answer 29

relation back theory

Question 30

A buyer who defaults on a purchase agreement may only obtain a purchaser’s lien if:

Answer 30

their breach is excused due to wrongful actions by the seller.

Question 31

A subcontractor needs to serve a ______ on the appropriate parties to perfect their right to file a mechanic’s lien.

Answer 31

20-day preliminary notice

Question 32

A mechanic’s lien becomes void if a foreclosure action is not filed within _____ after the mechanic’s lien is recorded.

Answer 32

90 days

Question 33

An owner may prevent a mechanic’s lien from attaching to their fee interest in the property by recording and posting a _______ within ten days after they become aware often tenant-contracted improvements.

Answer 33

notice of nonresponsibility

Question 34

The waiver of a subcontractor’s mechanic’s lien rights is:

Answer 34

only enforceable if it is awaiver and release signed by the contractor in exchange for partial or full payment of the amounts due.

Question 35

A signed and notarized ______ is used to document a judgment lienholder’s release of a lien against a residence.

Answer 35

release of recorded instrument

Question 36

Lis pendens means:

Answer 36

pending litigation.

Question 37

Recording a lis pendens is permitted in lawsuits which:

Answer 37

Affect title or the right to possession of realestate

Question 38

A(n) ______ is an involuntary, court-created trust imposed on the ownership of property held by an owner who acquired it through a wrongful act.

Answer 38

constructive trust

Question 39

To record a lis pendens, the lis pendens needs to:

Answer 39

identify the parties to the lawsuit.

give an adequate description of the real estate.

Question 40

An order ______ a lis pendens removes any restrictions sought to be imposed on title to a property.

Answer 40

expunging