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IA Real Estate Test Prep > Titles Deeds Ownership restrictions > Flashcards

Titles Deeds Ownership restrictions Flashcards

1
Q

Condense history of title to real property consisting of a summary of the links in the “chain of title” extracted from documents bearing on the title status.

A

abstract of title

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2
Q

Formal declaration before an authorized official, by the person who executed the instrument, that it is a free act.

A

acknowledgement

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3
Q

Information a person has actually learned by reading, seeing, or hearing.

A

actual notice

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4
Q

A method of obtaining title to real property by occupying it in an open and hostile manner contrary to the interests of the owner.

A

adverse possession

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5
Q

The act of transferring ownership, title, or an interest or estate in real property.

A

alienation

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6
Q

Written instrument that serves to transfer the rights or interests of one person to another.

A

assignment

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7
Q

A successive listing of all previous holders of title (owners) back to an acceptable starting point.

A

chain of title

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8
Q

The taking of private real property for a public purpose under the right of eminent domain for a fair price.

A

condemnation

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9
Q

A claim based on the principle of “unjust enrichment”; favors parties who have performed labor or delivered materials or supplies for the repair or building of an improvement to real property.

A

construction lien

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10
Q

The recording of a document or an instrument in the public records designed to give adequate notice to all.

A

constructive notice

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11
Q

A type of conveyance; a written instrument to transfer title to real property from one party to another.

A

deed

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12
Q

A right, privilege, or interest in real property that one individual has in lands belonging to another: a legal right to trespass: right-of-way authorizing access to or over land.

A

easement

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13
Q

An easement that runs with the land and benefits an adjacent parcel of land.

A

easement appurtenant

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14
Q

An easement created by a court of law in cases where justice and necessity dictate it, such as when property is landlocked.

A

easement by necessity

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15
Q

A right acquired by an adverse user to use the land of other, created through a court of law after longtime uninterrupted use.

A

easement by prescription

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16
Q

A type of easement that benefits an individual or business entity and is not related to a specific adjacent parcel, for example, utility easements.

A

easement in gross

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17
Q

The constitutional right given to a unit of government to take private property involuntarily if taken for public use and fair price is paid to the owner.

A

eminent domain

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18
Q

Unauthorized use of another person’s property.

A

encroachment

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19
Q

The beneficial interest in real estate that implies that an individual will receive legal title at a future date.

A

equitable title

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20
Q

Reversion of property to the state when an owner dies without leaving a will or any known heirs.

A

escheat

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21
Q

A provision in a deed containing a covenant or warranty to perform any further acts the grantee (buyer) might require to perfect title to the property.

A

further assurance

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22
Q

A claim that may affect all of the properties of a debtor.

A

general lien

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23
Q

An instrument of conveyance containing the strongest and most comprehensive promises of further assurance possible for a grantor (seller) to convey to a grantee (buyer).

A

general warranty deed

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24
Q

Party who receives a deed or grant; buyer.

A

grantee

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25
Q

The provision in a deed that specifies the names of the parties involved, the words of conveyance, and a description of the property.

A

granting clause

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26
Q

Party who signs and gives a deed; seller.

A

grantor

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27
Q

An agreement for the tenant to pay a fixed (base) rent and the landlord pays all of the expenses associated with the property.

A

gross lease

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28
Q

An agreement for the tenant to lease the land only and erect a building on the land.

A

ground lease

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29
Q

A provision in a deed to real property that stipulates the estate or interest the grantee is to receive and the type of title conveyed.

A

habendum clause

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30
Q

Without a will.

A

intestate

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31
Q

Title insurance issued for the unpaid mortgage amount to protect the lender against title defects.

A

lender’s policy

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32
Q

A claim on property for payment of some obligation or debt.

A

lien

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33
Q

A pending legal action.

A

lis pendens

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34
Q

An agreement for the tenant to pay fixed rent plus property costs such as taxes, insurance, and utilities.

A

net lease

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35
Q

A formal statement by an attorney regarding the status of a title after examination of the chain of title.

A

opinion of title

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36
Q

An agreement for the tenant to pay rent based on the gross sales received by doing business on the leased property.

A

percentage lease

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37
Q

The authority of government to protect the property, life, health, and welfare of its citizens.

A

police power

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38
Q

A provision in a deed guaranteeing that the buyer may enjoy possession of the property in peace and without disturbance by reason of other claims on the title by the seller or anyone else.

A

quiet enjoyment

39
Q

A type of deed that will effectively convey any present interest, claim, or title to real property that the seller (grantor) may own.

A

quitclaim deed

40
Q

A covenant in a deed that warrants that the grantor (seller) holds the property by virtue of a fee simple title and has a complete right to dispose of same.

A

seisin

41
Q

Claims that affect only the property designated in the lien instruments or agreements.

A

specific liens

42
Q

A lessee leasing a property to a third party for a period of time less than the original lease (also referred to as subletting).

A

sublease

43
Q

Having left a will.

A

testate

44
Q

Evidence of ownership of real property, such as a deed.

A

title

45
Q

A policy of insurance that protects the holder from any loss resulting from defects in the title.

A

title insurance

46
Q

An examination of all of the public records to determine whether any defects exist in the claim of title.

A

title search

47
Q

An agreement for the tenant to pay specified rent increases based on a predetermined index (CPI) at set future dates.

A

variable lease

48
Q

A provision in a deed guaranteeing that the seller will for all time defend the title and possession for the buyer.

A

warranty forever

49
Q
  1. Which type of easement gives an electric company the authority to install and maintain electric power lines?
A

In gross

50
Q
  1. Rent is $1,800 per month plus 3 percent of gross sales. The total rent for last month was $2,400. The gross sales for the same month were
A

$20,000

1800-2400 = 600

600 / .03 = 20,000

51
Q
  1. Courts at various levels have ruled that
    a. constructive notice is superior to actual notice.
    b. actual notice is superior to constructive notice.
    c. neither constructive notice nor actual notice is required.
    d. constructive notice and actual notice have equal legal priority.
A

D

52
Q
  1. A 92-year-old man is being forced from his home because of a governmental taking. The home has been in his family for four generations. What recourse, if any, does he have?
A

He may request a condemnation proceeding to protest the amount of compensation being offered by the governmental body

53
Q
  1. For a deed to be valid, a competent
A

grantor and two witnesses must sign the instrument.

54
Q
  1. The type or form of deed most commonly used to clear clouds on the title of real property is the
A

quitclaim deed.

55
Q
  1. If the sale contract does not specify the type of deed to be delivered, the seller is required to provide a
A

general warranty deed.

56
Q
  1. The process of taking property under the power of eminent domain is called
    a. escheat.
    b. foreclosure.
    c. condemnation.
    d. voluntary alienation.
A

C

57
Q
  1. The type of deed in which the grantor does not warrant the title in any manner EXCEPT agaisnt the grantor’s acts or the acts of the grantor’s representatives is called a
A

special warranty deed.

58
Q
  1. The covenant against encumbrances in a deed is designated to guarantee that the
A

grantor has not encumbered the property in any manner except as noted on the deed.

59
Q
  1. The purpose of recording a deed is to
A

give constructive notice of ownership.

60
Q
  1. In answering questions pertaining to quality of title, real estate licensees are
    a. required to give opinions because of their role as experts.
    b. required to advise prospective buyers to have a lawyer render an opinion or obtain title insurance.
    c. allowed to give their opinions because of their role as experts.
    d. allowed to give their opinions only when specifically asked by the buyer.
A

B

61
Q
  1. The seisin clause in a deed specifies
A

that the grantor actually owns the property and has the right to sell it.

62
Q
  1. The deed that contains the covenant guaranteeing that the grantor will forever be responsible for warranting title and will defend the title and possession is a
    a. general warranty deed.
    b. special warranty deed.
    c. public patent deed.
    d. bargain and sale deed.
A

A

63
Q
  1. An owner placed a condition in the deed that stipulated that a commercial building could NOT be erected on the property until at least the year 2020. This is an example of
    a. police power.
    b. a deed restriction.
    c. subdivision restrictive covenant.
    d. governmental restriction on ownership.
A

B

64
Q
  1. When a lis pendens is filed properly with the county clerk, it becomes a type of
    a. attachment on the subject property.
    b. vendor’s lien.
    c. constructive notice.
    d. easement by prescription.
A

C

65
Q
  1. Which lien is first in priority?
    a. A property tax lien effective on January1, 2011
    b. A special assessment lien certified on December 31, 2010
    c. A first mortgage lien filed on July 15, 2011
    d. A construction lien filed on November 30, 2010
A

A

66
Q
  1. A married couple signed a contract to purchase a home in a residential subdivision. When the couple had the lot surveyed before closing, they discovered that the contractor had built the neighbor’s garage three inches inside the west boundary of their lot . The garage in its present location is an example of
    a. a deed restriction.
    b. an easement by prescription.
    c. an implied easement.
    d. an encroachment.
A

D

67
Q
  1. When a pathway to a property has been used continuously and without interruption for more than 20 years, it creates an
    a. implied easement.
    b. encroachment.
    c. alienation by adverse possession.
    d. easement by prescription.
A

D

68
Q
  1. Soon after a man’s death a deed was discovered in his desk. The deed is for the man’s home and it deeded the property to a charitable organization. The man is survived by his son Andrew, who discovered the deed. The man died intestate. Based on this information, the house belongs to the
    a. state because the man died intestate
    b. charitable organization because the deed conveyed ownership to it.
    c. legal heir because the deed was never delivered and accepted.
    d. legal heir because the deed was not signed by the grantee.
A

C

69
Q
  1. The owner’s title insurance policy is
    a. issued for an amount no greater than the purchase price of the property and is transferable.
    b. issued for an amount no greater than the purchase price of the property and is not transferable.
    c. a separate policy for the amount of the unpaid balance of the mortgage and is transferable.
    d. a sperate policy for the amount of the unpaid balance of the mortgage and is not transferable.
A

B

70
Q
  1. A retail business rents a space in a mall. The lease calls for a base rent of $1500 a month plus 5 percent of the annual gross sales that exceed $360,000. If the annual gross sales are $472,000, what is the total annual rent for the business?
    a. $7,100
    b. $23,600
    c. $36,000
    d. $41,600
A

B

71
Q

Mortgagor gives, Mortgagee receives. Which is the mortgaror and which is the mortgagee : bank or borrower?

A

Borrower / buyer is mortgagor

Bank is mortgagee

(Borrower gives the mortgage to the bank saying “I will pay”)

72
Q

True or false: A mortgage is a loan

A

False.

The mortgage is a promise to pay the loan. A guarantee, that “if I don’t pay, you get the house back.”

73
Q

Which is the lender and which is the lendee: bank or borrower?

A

Bank is the lender

Borrower / buyer is the lendee

74
Q

Which is the lessor and which is the lessee: landlord or tenant

A

Landlord is the lessor

Tenant is the lessee

75
Q

Mortgage is sometimes called a

A

Trust deed

76
Q

What are the 3 parties or entities involved in a trust deed?

A

Trustee

Trustor

Beneficiary

77
Q

In a trust deed situation who is the trustor?

A

The buyer / borrower.

The trustor gives. The buyer has legal deed the house; they are “entrusting” (giving) it to a trustee.

78
Q

In a trust deed situation who is the trustee?

A

The Trustee receives. The trustee is a neutral 3rd party that holds the security (the deed) in trust to guarantee the borrower will pay the bank back.

79
Q

In a trust deed situation, what is the bank called?

A

The beneficiary.

The bank benefits if the trust gets broken. The bank is protected by the trust deed.

80
Q

Is a mortgage a voluntary or involuntary lien?

A

Voluntary.

The buyer chooses to borrow money.

81
Q

A right or interest in real property other than ownership or tenancy interest. (Such as a lien) A claim against the property.

A

Encumbrance

82
Q

True or false: A mortgage is an encumbrance

A

True

83
Q

True or false. Any lien is an encumbrance, and any encumrance is a lien

A

False.

Any lien is an emcumbrance, but not all encumbrances are liens

84
Q

“Encumber” means

A

To restrict or burden

85
Q

A document that uses a property to secure the payment of a debt or the discharge of an obligation

A

Lien

86
Q

True or false: A voluntary lien does not have to be recorded

A

True. (But it’s a good idea)

87
Q

A real estate transaction is not complete until

A

It is recorded. (County Treasurer)

88
Q

Lien against just one property

A

Specific lien

89
Q

Lien against all properties of the owner

A

General lien

90
Q

What kind of lien would property taxes create?

A

Involuntary, specific.

(Going against just one property)

91
Q

A written instrument that makes a property collateral for a loan

A

Trust deed (deed of trust)

92
Q

A mechanichs lien may be established as of the date

A

The work began, or the materials were furnished

93
Q

True or false: A mechanic’s lien may take priority over all liens

A

False. Taxes and special assessments can take priority.

(However mechanic’s liens can take priority over mortgages if the work began before first mortgage)

94
Q

First in time, first in right

A

Priority of liens

IA Real Estate Test Prep (53 decks)

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