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Real Estate Exam > Unit 6/Class 6 > Flashcards

Unit 6/Class 6 Flashcards

1
Q

The basic requirements for a valid conveyance are governed by

A

state laws

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2
Q

Every deed MUST be signed by….

A

the grantor

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3
Q

A 15 year old recently inherited a parcel of real estate and has decided to seel it. if the 15 year old executes a deed conveying the property to a purchaser, such a conveyance would be….

A

voidable. because the individual is a minor

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4
Q

A form authorizing one person to execute documents for another is called a….

A

power of attorney

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5
Q

The grantee receives greatest protection with what type of deed?

A

General Warranty

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6
Q

Party Y receives a deed from Party X. the granting clause of the deed states, “I hereby remise, release, alienate, and convey to Y the following real property.” What type of deed has Y received?

A

Special warranty

**“I hearby remise, release, alienate and convey” is phrasing for special warranty deeds

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7
Q

Under the covenant of quiet enjoyment, a grantor ensures what?

A

That the title will be good against the title claims of third parties

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8
Q

What type of deed merely implies but does not specifically warrant that the grantor holds good title to the property?

A

bragain and sale

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9
Q

P signed a deed transferring ownership of P’s house to Q. To provide evidence that P’s signature was genuine, P executed a declaration before a notary. This declaration is known as a….

A

an acknowledgment

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10
Q

A resident of Denver bought acreage in a distant county, never went to see the acreage, and did not use the ground. An artist moved a mobile home onto the land, had a water well drilled, and lived there for 22 years. The artist may become the owner of the land if the artist is in compliance with the state law regarding….

A

adverse possession

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11
Q

What are two examples of involuntary alienation

A

Eminent Domain and escheat

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12
Q

A deed contains a promise that the title conveyed is good and a promise to obtain and deliver any documents necessary to ensure good title. This deed contains and example of which covenant

A

Further assurances

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13
Q

A deed contains a guarantee that the grantor will compensate the grantee for any loss resulting from the title’s failure in the future. This is an example of which covenant

A

Warranty Forever

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14
Q

A person who has died without a will has died….

A

intestate

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15
Q

Title to real estate can be transferred upon death by what type of document?

A

A will

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16
Q

Generally, where does a probate proceeding involving real property take plae

A

In both the county where the deceased resided and the county in which the property is locate.

(so there will potentially be 2 probates)

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17
Q

A deed states that the grantors are conveying all their rights and interests to the grantees to have and to hold. This is communicated in…

A

the habendum clause

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18
Q

A grantor who wants to limit his liability to his period of ownership should give the grantee what type of deed?

A

Special warranty deed

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19
Q

Mr. Green used an assumed name when he purchased a property. Two years later, Mr. Green sold the property using the assumed name to Mr. Smith. What is the status of Mr. Smith’s title?

A

Mr. Smith has legal title to the property

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20
Q

A seller enters into a sales contract with a buyer which stated that the seller was reserving an easement. When the deed is prepared, the reserved easement will most likely be found where?

A

Reservation and exemption portion of the deed

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21
Q

Six months after purchasing a property, a grantee discovered that his deed contained an error and only a portion of the property that he had purchased was conveyed to him. The grantor would be required to correct the error if the deed given tot he grantee contained the covenant of:

A

Further assurances

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22
Q

Involuntary alienation may occur whe:

A

An adverse possessor quiets a title

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23
Q

When a grantor is required to remove a cloud from a title, what kind of deed will they use

A

A quitclaim deed

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24
Q

After the death of a property owner it was discovered that he had no heirs. according to state law, the owner’s property will…

A

Revert to the state in which the property is located (Escheat)

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25
Q

The covenant of siezen in a deed, the deed states that the grantor:

A

is the lawful owner of the interest, such as fee simple, and has the right to convey the interest

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26
Q

The deed given to a buyer that offers him the most protection while creating the most liability for the seller would be a

A

general warranty deed

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27
Q

What is title?

A

The right to, or ownership of land, and can also be evidence of that ownership

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28
Q

Voluntary alienation is the transfer of title to real estate by….

A

gift or sale during one’s life using some form of deed

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29
Q

To create a valid deed, the grantor must fit what two requirementsa

A

Be of legal age and legally competent to execute the deed

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30
Q

The signature of the grantor by be acknowledged by who?

A

a notary public or other official authorized by the state in which the property is located.

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31
Q

What type of deed provides the greatest protection

A

General warranty deed

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32
Q

What are the two warranties included in the special warranty deed

A

that the grantor received title

that the property was not encumbered during the time the grantor held title

33
Q

What are the details of a bargain and sale deed

A

Implies that the grantor holds title and possession

no warranties against encumbrances

34
Q

What deed provides the least protection?

A

Quitclaims deed

35
Q

Details of quitclaims deed?

A

no covenants
No warranties
conveys only whatever interest the grantor may have when the deed is delivered

36
Q

What kind of special stamps may be required to transfer a deed?

A

Transfer tax stamps

37
Q

Involuntary alienation is a type of transfer of title to property that is usually by operation of law. Using the government’s power of ________, property can be taken for a public purpose, with _______ paid to the owner. In a foreclosure, property is taken by a _______ for nonpayment of a debt secured by __________. In the process called _______, property is taken by the state when no heirs of the deceased can be found.

A 
eminent domain
just compensation
creditor
real property
escheat
38
Q

Property can be acquired by __________ when someone who is not the lawful owner takes exclusive possession of the property for the length of time specified by state law in a way that is ONCHA. What does ONCHA stand for.

A

Adverse possession

Open, Notorious, Continuous, Hostile, and Adverse to the interest of the true owner.

39
Q

Transfer of title by will occurs when someone dies _______

A

testate (leaving a valid will, prepared as required by state law)

40
Q

A devise is a conveyance of property by _____
A demise is a conveyance of property by _______
A bequest or legacy is a gift of _________

A

will
lease
personal property

41
Q

To pass title to property on death, a will must be ________ and ________.

A

Filed with the court

probated

42
Q

Can wills supersede state laws protecting inheritance rights of a surviving spouse (dower/curtsy) or homestead?

A

No - state laws supersede wills

43
Q

When a person dies intestate (without a will), transfer of title occurs under a state’s ___________

A

statute of descent and distribution

*The laws of the state where real property is located govern property distribution

44
Q

Title is your legally recognized evidence of ownership. how is Title transferred?

A

Through a deed

45
Q

The word alienation means to….

Conveyance of title may take place ______ or ________

A

transfer a title

voluntary or involuntary

46
Q

What are the four ways title can be conveyed

A

through a deed
through a will
by descent
by legal action

47
Q

what is the main purpose of a deed?

A

To convey title to real estate.

Deeds also show evidence of ownership or title

48
Q

Who prepares the deed

A

Attorney

49
Q

Real property is transferred by a _______

Personal property is transferred by a ___________

A

deed

bill of sale

50
Q

When a title is conveyed by deed, the party giving the title is called the ______; the party receiving the title is the _________; most deeds are prepared by ________

A

grantor
grantee
attorney

51
Q

Unless prohibited by state law, title can be held in a fictitious name, however, title cannot be….

A

given to a fictitious person

52
Q

Consideration is anything of value. Consideration in a deed can be _______ or _______. Although the actual amount of consideration does not have to be recited in a deed, it usually is. What are two examples of consideration

A

for love and affection

the purchase price paid for the property

53
Q

What are the seven requirements for a valid deed

A 
Grantor 
Grantee
Legal Property Description
Consideration
Granting Clause 
Reservations and Exceptions
Signatures
54
Q

What is the granting clause in a deed

A

States the rights and interest the grantee will receive

contains the words that convey title, ie i hereby grant and convey…

55
Q

“To have and to hold” is what part of the deed?

A

The habendum

It defines the extent of ownership but is not required

56
Q

How can deed restrictions be terminated

A

By agreement
abandonment
court action
passage of time

57
Q

Reservations vs. exceptions in a deed

A

Reservations - a right retained by the grantor

Exceptions - can be a portion of the property excluded from the sale or something that the grantee agrees to accept with the tile, such as a lien

58
Q

What about the signatures of a deed?

A

Grantor MUST sign

Generally, grantees do not sign deeds.

59
Q

Condition vs. Restriction

A

Both limit the use of the property in a way, but if you break a condition you can ose title. If you break a restriction you may be sued or required to fix whatever is not supposed to be there, but you wont lose title

60
Q

An acknowledgement is a formal declaration made before a public official, such as a notary. A deed does not have to be acknowledged by a notary to __________; however, it must be acknowledged to _______ into the public records

A

convey a title

record a deed

61
Q

Does a deed have to be recorded to have a valid transfer

A

No, but it is HIGHLY encouraged

62
Q

Recording gives constructive notice to the world and protects the owner’s interest from claims by third parties. What does constructive notice mean?

A

Constructive notice implies that a person has knowledge of a fact.

63
Q

For a deed transfer to be valid, what last step must occur

A

Deed must be delivered to the grantee, and the grantee has to accept it

64
Q

What are the four kinds of deeds, from most to least desirable/protective?

A

General Warranty
Special Warranty
Bargain and Sale
Quitclaim

65
Q

A deed conveys a _____

A

title

66
Q

What are the highlights of a General Warranty deed

A
  • guarantees the title forever
  • Grantor has the most liability, Grantee most protected
  • Contains 5 covenants/promises: Seizen, against encumbrances, quiet enjoyment, further assurance, and warranty of title
67
Q

There are five covenants/promises of a General warranty deed. Describe each:

(1) Covenant of Seizen
(2) Covenant Against Encumbrance
(3) Covenant of Quiet Enjoyment
(4) Covenant of Further Assurance
(5) Covenant of Warranty of Title

A

(1) Covenant of Seizen - guarantees that the grantor has the right to sell and is in possession of the property (the quantity and quality of the title)
(2) Covenant Against Encumbrance - nothing that would burden the title, such as liens
(3) Covenant of Quiet Enjoyment - promising that the grantee can enjoy his ownership without claims against the title from third parties
(4) Covenant of Further Assurance - if there is ever a problem with the title (cloud), the grantor will fix it or fix errors in the deed
(5) Covenant of Warranty of Title - guarantee that the grantor will pay for the cost to defend the title forever

68
Q

What are some Special Warranty deed highlights?

A
  • The warranty is limited to the period of ownership

- Grantor just promising that they didn’t hurt it while they had it

69
Q

Highlights of Bargain and Sale Deed

A
  • No warranties
  • Only imply ownership and possession
  • Common with foreclosures
70
Q

Details on Quitclaim deed?

A
  • No warranties
  • No guarantees
  • Conveys only whatever interest the grantor may have when the deed is delivered
  • Frequently used to cure a title defect (if the grantor’s name is misspelled, a quitclaim deed with the correct spelling may be executed to the grantee to perfect the title.
71
Q

A _______________ is used by a trustee to return title to the trustor. For example, when a loan secured by a deed of trust has been fully paid, the beneficiary notifies the trustee. the trustee then conveys the property back to the trustor.

A

Reconveyance Deed

72
Q

Deed of Trust vs. Deed in Trust

A

Deed of trust:
Title Theory States
Also called a Trust deed; Acts like a mortgage but is not one. Trustor conveys title to a third party (trustee) who holds the title for the beneficiary (lender). When the debt is paid, the trustee uses a reconveyance deed to give title back to the trustor.

Deed in Trust:
Lien Theory States
Used to convey title from the trustor to the trustee when a property owner places his property in a trust.
Trustee has legal title to the property, beneficiary holds equitable title.

73
Q

__________ is used to convey title to property that is transferred by will or by court order

A

Executor’s deed

74
Q

How are transfer tax stamps charged?

A

Usually charged as a rate on the sale price of the property such as $1.00 per $1,000 dollars of the sale price.

*This is the transfer tax charged when a title is transferred and recorded

75
Q

Title to property may be transferred without the owner’s consent by __________. What are methods that this can happen?

A

involuntary alienation.

foreclosure, eminent domain, tax sales, escheat, intestate (without a will) succession

76
Q

Also known as title by prescription, ___________ allows title to be acquired by someone who uses the land of another for a statutory period of time. In order to claim title through this means, they have to meet the following: (POACHER)

A

Adverse Possession

Possession
Open
Actual and Notorious
Continuous
Hostile
Exclusive
Right of Claim
77
Q

An adverse possessor becomes the legal title holder when he ______ the title. What is a quiet title suit?

A

quiets the title

legal action to establish ownership

78
Q

DIE WITH WILL
A property owner who has a will is said to have died ______, or with a will. _____ is the conveyance of real property through a will. The deceased who leaves the real estate to another is called a ________ and the party receiving the real estate is the _________.
_______ means to leave personal property to another through a will.

A 
testate 
DeVise 
Devisor
Devisee 
Bequeath

Real Estate Exam (19 decks)

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