Transfer Title

Question 1

A document that shows the history of a property

It shows the correct and previous titleholders of the property and any other recordings that may affect the property

Answer 1

Abstract

Question 2

Insurance that covers title defects or clouds of title

Answer 2

Title insurance

Question 3

Contains the following covenants
1.Covenant of seisin
2. Covenant of right to convey
3.Covenant for quiet enjoyment
5.covenant of warranty
6. Covenant of further assurances

Answer 3

Warranty Deed

Question 4

A promise that the grantor did not create any title defects but does not promise anything that occurred prior to the current ownership

Answer 4

Special warranty deed

Question 5

Does not make any promises only conveys what interest the grantor holds in the land

Answer 5

Quitclaim deed

Question 6

A third party obtains holds, and distributes money and property for the two primary parties (the buyer and the seller)

This occurs from the moment of an executed purchase agreement to the closing of the transaction

Answer 6

Escrow

Question 7

The culmination of the real estate transaction

Answer 7

Closing

Question 8

Holds property in trust as a neutral third party until contractual conditions are fulfilled

Answer 8

They bear fiduciary responsibility to both involved parties

Question 9

Shows the transference of money between the parties

The statement shows the money in the form of debit and credits of value to the parties

Answer 9

Closing statement

Question 10

The title insurance, origination fees, inspection fees, recording fee, flood certification, and other one-time costs that need to be paid before the sale closes

The buyer pays these costs unless other arrangements have been made (such as by concession from the seller)

Answer 10

Closing costs

Question 11

The process of placing documents into public record

This is done to give legal notice and protect interests within certain properties

Answer 11

Recording

Question 12

The profit that is realized from the sale of capital asset

It is the difference between the original purchase price and the increased sales price is lower than the original purchase price, the difference is referred to as capital loss.

Answer 12

Capital gain

Question 13

A tax deferral transaction that an investment property may enter

This is not a tax avoidance transaction. Instead, it allows taxes to be paid at a later time rather than upon the sake of an investment property

Answer 13

1031 exchange

Question 14

The term used for when real property is conveyed under the term of a will

Example: in my grandparents will they device the property to my parents

Answer 14

Devise

Question 15

The term used for when personal property is transferred under the terms of a will and may be shown under a bill of sale depending on whether it was a gift or from the sale the property

Answer 15

Bequest

Question 16

When a property owner without a will

Interstate laws of the jurisdiction will apply in determining proper heirs and which heir shall receive the personal and real property. These
Vary among jurisdictions

Answer 16

Interstate

Question 17

Ownership acquired by a non-owner for open continuous actual notorious hostile and exclusive possession of the owners property for the required statutory period (state law determines the duration)

Answer 17

Adverse possession

Question 18

An easement acquired by a non-owner due to open continues, actual, notorious hostile use of the owner land for the required statutory period

This does not require exclusive possession

Answer 18

Prescriptive easement

Question 19

The opportunity for a borrower to redeem a property that has entered foreclosed back from the lender

Equity of redemption occurs before the foreclosed sale, while right of redemption occurs after

Answer 19

Redemption

Question 20

When a borrower pays a defaulted mortgage loan in full, plus Interest and expenses that have accrued time frame and terms of the contract

This is the last chance for the borrower to retain the property

Answer 20

Equity of redemption (prior to foreclosure sale)

Question 21

Allows a borrower a window of time to pay the lender the balance of a delinquent loan,plus interest and expenses

In some states, this allows the borrower to regain possession of their home even after it has already been sold in foreclosure. However,the right of redemption does not exist in all states

Answer 21

Right of redemption (after foreclosure sale)

Question 22

in judicial foreciosure states, the lender
Will file lawsuit asking the court for the
Right sell the home and appiy the proceeds
the debt.Judicial foreciosure states, the lender
does not have to go through che court system to foreclosure on the home, so it may go through the process more quickly

Answer 22

Title taken by lender

Question 23

A court ruling that holds the borrower
responsible for any outstanding balance still
remaining on the loan after the foreclosure sale
The lender requests a deficiency judgment from
The court, who then makes a ruling on the case.
This process does not exist in every state

Answer 23

Deficiency Judgement

Question 24

When a property owner sells their property
for a lower price than the amount due on the

property’s mortgage
The mortgage lender approve the decision
to pursue a short sale, and all proceeds from a
short sale go to the lender, not the seller.

Answer 24

Short sale

Question 25

A property owned by a lender or the
government after the property failed to sell at a foreclosure auction
The lender will retawnership until the property that meets the lender’s
satisfaction.

Answer 25

Real Estate owned (REO)

Question 26

Which legal document
transfers a title of real estate from
oneperson to another?

A. Deed
B. Promissory note
C. Reversion
D. Plat

Answer 26

A: A deed is a legal document that transfers
title of property. A promissory note is a legal
document between the and the buyer
regarding the financing purchase. A reversion
is a property interest,a document. A plat is a
document used for legal descriptions.

Question 27

Which of the following may
NOT be required in a deed?

A Legal description
B Words of conveyance
C Common address
D ldentfcation of the grantor and grantee

Answer 27

C: A common address states where a property
approximately located.its not required to be in
a deed

Question 28

Which deed contains six covenants regarding the prior and the current title?

A. Quitclaim Deed
B. Warranty Deed
C. Specialty Deed
D. Legal Deed

Answer 28

B: A warranty deed contains the six covenants to a titie. A quitclaim deed does not make promises
regarding the title. A specialty deed does not
cover the titie prior to the current owner’s
ownership. A legal deed is not a type of deed.

Question 29

Richard gives Samar a warranty
deed. This deed contains
covenants regarding title. Which of the
following is not an applicable covenant?
A. Covenant of seisin
B. Covenant of right to convey
C. Covenant of intenticons
D. Covenants of further assurances

Answer 29

C Choice C is not a title covenant. Choices A B
D are covenants of title
awaranty deed.

Question 30

Which of the following is the term
for a title that is free of reasonable doubts
or a threat of litigation?

A. Abstract
B. Quitclaim deed
C. Warranty deed
D. Marketable title

Answer 30

D: A marketable title is a title that is free
from reasonable doubts or a threat of
litigation. An abstract, or abstract of titie, is a
document that shows the the history of a property A warranty deed is a legal
transfers a title along with six specific covenants.
A quitclaim deed does not maxe any promises
and onily conveys what interest the grantor holds in the land.