Real Estate Exam Test Prep 2 Flashcards
Covenant Against Encumbrances
Grantor promises all encumbrances have been disclosed
Covenant of Warranty Forever
Grantors promises have no expiration date
Testator
A party who makes a will
Testate
One who has a valid will
Executor
Person named in the will to settle the estate
Devise
Inheritance by will gives Title by Devise. The property is the devise and the heir is the devisee.
Interstate
One without a will
Administrator
One who he court appoints to settle the estate of an intestate person.
Title by Descent
Heirs inherit real property from intestate by the Laws of Descent
Foreclosure
Legal process instituted by a lien holder after a debtors default on his payments.
Deed in lieu of foreclosure
Alternative to foreclosure
Lender accepts deed from the borrower
Redemption
Borrower steps in and pays what’s owed up to the moment of foreclosure
Short Sale
Sale of secured real property that produces less money than owed to lender
Lender releases lien so property can be sold to new purchaser
Title
Ownership of something and legal evidence of that ownership (a deed)
Equitable Title
Interest created by a legal document such as that held by a buyer with a signed sales contract who has not yet gone to closing
The buyer has equitable estate or equitable title
Subrogation Clause
Of a title policy, allows title company to assume the rights of a buyer with respect to any claim against a seller, if title company made payments to buyer to satisfy that claim.
abstract of title
complete history of title
chain of title
list of all owners
Quiet Title Suit
court procedure to cure or quiet the cloud if no one is available to sign a quitclaim
If property owner plants a tree surrounded by flowering shrubs, the tree and shrubs are…
improvements
Property owner has the right to use water from a stream neighboring his property. This right is called…
riparian
A tenants lease ends at the end of the month, he starts to disable his cabinets and shelves. Can he take the cabinets and shelves?
Yes, they are trade fixtures
If an M&M lien has been discovered on the property by the title company, what may be the cause?
work was done on the property but never paid for
A neighbor’s satellite dish trespasses on a seller’s property. This is an example of…
encroachment
Father gives son life estate on a property. The son leases the property. The tenant dies. What happens to the property?
goes back to the son until he dies
