Real Estate Exam Test Prep 2

Question 1

Covenant Against Encumbrances

Answer 1

Grantor promises all encumbrances have been disclosed

Question 2

Covenant of Warranty Forever

Answer 2

Grantors promises have no expiration date

Question 3

Testator

Answer 3

A party who makes a will

Question 4

Testate

Answer 4

One who has a valid will

Question 5

Executor

Answer 5

Person named in the will to settle the estate

Question 6

Devise

Answer 6

Inheritance by will gives Title by Devise. The property is the devise and the heir is the devisee.

Question 7

Interstate

Answer 7

One without a will

Question 8

Administrator

Answer 8

One who he court appoints to settle the estate of an intestate person.

Question 9

Title by Descent

Answer 9

Heirs inherit real property from intestate by the Laws of Descent

Question 10

Foreclosure

Answer 10

Legal process instituted by a lien holder after a debtors default on his payments.

Question 11

Deed in lieu of foreclosure

Answer 11

Alternative to foreclosure

Lender accepts deed from the borrower

Question 12

Redemption

Answer 12

Borrower steps in and pays what’s owed up to the moment of foreclosure

Question 13

Short Sale

Answer 13

Sale of secured real property that produces less money than owed to lender

Lender releases lien so property can be sold to new purchaser

Question 14

Title

Answer 14

Ownership of something and legal evidence of that ownership (a deed)

Question 15

Equitable Title

Answer 15

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

Question 16

Subrogation Clause

Answer 16

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.

Question 17

abstract of title

Answer 17

complete history of title

Question 18

chain of title

Answer 18

list of all owners

Question 19

Quiet Title Suit

Answer 19

court procedure to cure or quiet the cloud if no one is available to sign a quitclaim

Question 20

If property owner plants a tree surrounded by flowering shrubs, the tree and shrubs are…

Answer 20

improvements

Question 21

Property owner has the right to use water from a stream neighboring his property. This right is called…

Answer 21

riparian

Question 22

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?

Answer 22

Yes, they are trade fixtures

Question 23

If an M&M lien has been discovered on the property by the title company, what may be the cause?

Answer 23

work was done on the property but never paid for

Question 24

A neighbor’s satellite dish trespasses on a seller’s property. This is an example of…

Answer 24

encroachment

Question 25

Father gives son life estate on a property. The son leases the property. The tenant dies. What happens to the property?

Answer 25

goes back to the son until he dies