Transfer of Title and Real Property Flashcards
Which of the following would be used to clear a defect from the title records?
A suit to quiet title
The recorded history of all matters that affect the title to a specific parcel of real property is
A chain of title
The best assurance of good title that a real estate purchaser can obtain is
A title insurance policy
Which of the following is NOT a means of title transfer by involuntary alienation?
Will
Which of the following is NOT a necessary condition of eminent domain?
A)
Use benefits the public.
B)
Property owner is protected by due process of law.
C)
Just compensation is paid to the property owner.
D)
Property is to be given to the owner of a quasi-public corporation.
The answer is D.
A North Carolina property sells for $300,000 and is financed by a 90% loan. What is the excise tax for the property?
$600
Divide sales price (not loan amount) by $500.
$300,000 ÷ $500 = $600
In a real estate transaction, excise taxes are the responsibility of
The seller
The recording of a deed
gives constructive notice of the ownership of real property
A man owned property as a tenant in common with his two best friends. Years later, the man was adjudged legally incompetent and moved into a nursing home. During his stay at a nursing home, the man wrote a will leaving his entire estate to the nursing assistant assigned to his care. The man was survived by three children when he died. After his death, his real estate interests passed to
his children by the law of intestate succession
explanation: Every state, including North Carolina, has a law known as a statute of descent and distribution. When a person dies intestate (without having left a will), the decedent’s real estate and personal property pass to the decedent’s heirs according to this statute.
A buyer wanting to make sure title to the property is protected from others having priority of interests would
record the deed
A property is under contract for a sales price of $357,800. The buyer will assume the seller’s outstanding loan balance of $225,000, secure a second mortgage for $100,000, and pay the remainder in certified funds at settlement. On the settlement statement, the seller will be charged excise tax in the amount of
$716
$357,800 ÷ 500 = $715.60, round up to $716
The excise tax to be paid on a North Carolina property selling for $175,000, with $25,500 down and the buyer assuming an existing mortgage of $149,500, is
$350
$175,000 SP ÷ $500 = $350
The person who examines the chain of title and prepares an opinion of title for a parcel of real estate
writes a brief history of the record of ownership of the property.
When a title examination is conducted, the title examiner lists each instrument in chronological order along with information relative to taxes, judgments, special assessments, surveys, easements, and the like. The title examiner concludes with an opinion of title indicating which records were examined and when, and stating the examiner’s opinion of the quality of the title.
Instruments affecting real estate are recorded in the public records of the county where the property is located because
recording gives constructive notice to the world of the rights and interests in a particular parcel of real estate.
the instruments must be recorded to comply with the terms of the county recording laws.
1 only
Which type of deed merely implies but does NOT specifically warrant that the grantor holds good title to the property?
Bargain and sale
Explanation: A bargain and sale deed contains no express warranties against encumbrances. However, it does imply that the grantor holds title and possession of the property. Because the warranty is not specifically stated, the grantee has little legal recourse if title defects appear later. In some areas, this deed is used in foreclosures and tax sales.
