Unit 4

Question 1

Alienation

Answer 1

Is the act of granting real estate ownership

Question 2

Private grant

Answer 2

From government to individual using a deed

Question 3

Public grant

Answer 3

From government to individual using a land patent

Question 4

Dedication

Answer 4

From individual to government using a recorded plat

Question 5

Deed

Answer 5

Conveys title to real estate

Question 6

Bill of sale

Answer 6

Conveys title to personal property

Question 7

Competent grantor

Answer 7

18/sane/sober
Seller = grantor; buyer = grantor

Question 8

Identifiable grantee

Answer 8

Need not be competent

Question 9

Consideration

Answer 9

Money, promises, anything of value

Question 10

Granting Clause

Answer 10

Words of conveyance
Seller is making a grant

Question 11

Habendum Clause

Answer 11

Name type of estate

Question 12

Seizin

Answer 12

Grantor owns the land
Grantor has lawful authority to sell

Question 13

Encumbrances clause

Answer 13

No unspecified encumbrances

Question 14

Delivery to and acceptance by the grantees

Answer 14

Title passes upon acceptance by the grantee

Question 15

Personal representatives deed

Answer 15

Conveys a deceaseds interest

Question 16

Guardians deed

Answer 16

Conveys a minors interest

Question 17

Committees deed

Answer 17

Conveys an incompetents interest

Question 18

Other ways of obtaining title

Answer 18

Transfer by will is considered voluntary

Question 19

Adverse possession

Answer 19

Involuntary transfer

Question 20

Establishes priority of interests

Answer 20

“First in time, first in right”

Question 21

System allows us to search claims

Answer 21

Inspect property for visible claims
Inspect public records for recorded claims

Question 22

Documentary stamp tax paid _____ upon recording a deed

Answer 22

by seller

Question 23

How much is the stamp

Answer 23

$.70 per $100 (or portion) of price

Question 24

$99,910 ./. $100 each stamp

Answer 24

(999.1) 100 stamps

Question 25

Documentary state tax paid _______ on each new or assumed note

Answer 25

by borrower

Question 26

Intangible tax paid _______ upon recording a new mortgage only

Answer 26

by borrower

Question 27

$.002 (2 mils) per $1 of new mortgage recorded

Answer 27

80,000 x .002 = 160

Question 28

Deed tax =

Answer 28

100,000/100 =1,000 stamps x.7 =700

Question 29

Note tax

Answer 29

80,000/ 100 =800 stamps x .35 =280

Question 30

Intangible tax =

Answer 30

$.002 x $80,000 =$160

Question 31

Total tax sellers =

Answer 31

$700 deed tax ;

Question 32

Total tax toborrow =

Answer 32

$280 note tax + $160 intangible tax =$440

Question 33

Testate means dying with a will; intestate means without a will

Answer 33

Transfer by will is considered voluntary

Question 34

Adverse possession

Answer 34

Involuntary transfer

Question 35

Establishes priority of interests

Answer 35

“First in time, first in right”

Question 36

System allows us to search claims

Answer 36

Inspect property for visible claims
Inspect public records for recorded claims

Question 37

EXTENDED COVERAGE POLICY

Also protects against problems that are not recorded but would probably be discovered by inspection of the property:

Answer 37

A. Adverse possession
b. Encroachment
C. Easement by prescription
d. Unrecorded construction lien

Question 38

Owners policy (traditionally standard coverage)

Answer 38

Protects owners and heirs while they have an interest
Not transferable

Question 39

Mortgage lenders policy

Answer 39

Protects lender and assigns for the loan amount
Transferable

Question 40

Debit to buyer is anything that increases the amount of money the buyer brings to the closing

Answer 40

Bet

Question 41

Earnest money

Answer 41

New mortgage to lender

Question 42

Seller responsibility for unpaid taxes

Answer 42

New mortgage to seller

Question 43

Seller responsibility for interest on assumed mortgage

Answer 43

Assumed mortgage

Question 44

Credit to seller is anything that increases the amount of money the seller takes from closing

Answer 44

Sales price, prepaid taxes, mortgage escrow balances