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Real Estate Exam! > Unit 9: Title, Deeds, and Ownership Restrictions > Flashcards

Unit 9: Title, Deeds, and Ownership Restrictions Flashcards

1
Q

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

A

Title

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2
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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3
Q

ownership of a freehold estate.

A

Legal title

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4
Q

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

A

Alienation

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5
Q

The transfer of title is accomplished with the owner’s control and consent.

A

Voluntary Alienation

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6
Q

True/False A deed is a written instrument used to convey an interest in real property. Thus, a deed conveys legal title. A deed is used to sell or gift real property to another person (or entity) during the owner’s lifetime.

A

True

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7
Q

Having left a will.

A

Testate

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8
Q

a legal instrument used to convey title to real and personal property after the person’s death.

A

Will

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9
Q

When a person dies intestate and the property either descends to the decedent’s heirs or transfers to the state through escheat.

A

Involuntary Alienation

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10
Q

Without a will.

A

Intestate

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11
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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12
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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13
Q

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

A

Eminent Domain

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14
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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15
Q

True/False At the time the buyer and seller sign a real estate sale contract, the buyer receives legal title to the property.

A

False. When the buyer and seller sign a real estate sale contract, the buyer receives equitable title to the property.

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16
Q

True/False In a will, the recipient of real estate is referred to as the devisee.

A

True

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17
Q

True/False Alienation is the act of transferring ownership, title, or interest in real property from one person to another.

A

True

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18
Q

True/False Transfer of title to property with a will is a type of involuntary alienation.

A

False. There are two types of voluntary alienation: by deed and by will. Conveyance of property according to a will is voluntary alienation because the person who left a will intended to gift property to a particular individual.

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19
Q

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

A

Actual Notice

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20
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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21
Q

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

A

Acknowledgment

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22
Q

True/False Recording a document in the county records provides constructive notice.

A

True

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23
Q

True/False Constructive notice has more legal priority compared with actual notice.

A

False. Actual notice and constructive notice have the same legal priority.

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24
Q

True/False Constructive notice provides the BEST evidence of ownership.

A

True

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25
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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26
Q

Condensed 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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27
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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28
Q

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

A

Title Insurance

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29
Q

Title insurance issued for the total purchase price of the property to protect the new owner against unexpected risks.

A

Owner’s Policy

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30
Q

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

A

Lender’s Policy

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31
Q

True/False The lender’s policy is transferable.

A

True

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32
Q

True/False The owner’s title insurance policy is issued for the mortgage amount.

A

False. The owner’s title insurance policy is issued for the total purchase price of the property.

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33
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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34
Q

Party who signs and gives a deed; seller.

A

Grantor

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35
Q

Party who receives a deed or grant; buyer.

A

Grantee

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36
Q

True/False Title to real property is transferred from the grantor to the grantee when the deed is voluntarily delivered and accepted.

A

True

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37
Q

True/False The granting clause defines the bundle of legal rights being conveyed to the grantee.

A

False. The granting clause states the grantor’s intention to transfer title to the grantee with words such as grants, bargains, and sells.

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38
Q

True/False Deeds must be signed by the grantor and the grantee.

A

False. Deeds must be signed by a competent grantor and two witnesses.

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39
Q

True/False The habendum clause states the type of estate being conveyed.

A

True

40
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

41
Q

A type of deed in which title is transferred and a limited number of warranties are made respecting title to or use of the property.

A

Bargain And Sale Deed

42
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

43
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

44
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. Also called a seizin clause.

A

Seisin

45
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

46
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

47
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

48
Q

A personal representative is an individual either appointed by will or by order of a court to settle the estate of a deceased person. The testator typically identifies a trusted person to serve as personal representative who will be charged with carrying out the provisions of the will under the direction of the court in which the will was probated. If an owner should die without leaving a will, the probate court having jurisdiction will appoint a personal representative to settle the decedent’s affairs. A personal representative’s deed is used to formalize and record the transfer of title. It should show the full consideration paid for the property and contain a covenant of no encumbrances.

A

Personal representative’s deed.

49
Q

A guardian acts on behalf of a minor (or other ward) and is also a fiduciary. Normally, the permission of a court is required for a guardian to sell or convey property belonging to the minor. When authorized by the courts, a guardian’s deed legally conveys the minor’s property.

A

Guardian’s deed.

50
Q

One of the essentials of a valid deed is a competent grantor. When an owner is declared legally incompetent or is committed to an institution, a committee is often appointed by the court to administer the affairs of the incompetent. The committee functions under the direction of the court if conveying or disposing of the incompetent’s estate. All members of a committee must sign the deed. A committee also must adhere to fiduciary disclosure requirements.

A

Committee’s deed.

51
Q

The instrument used to convey title to property sold for nonpayment of taxes. No covenants are given, and the buyer assumes all risks for title defects. Extreme caution should be taken when purchasing property at a tax sale.

A

Tax deed.

52
Q

True/False In a special warranty deed, the grantor will only defend the title during the grantor’s ownership.

A

True

53
Q

True/False The covenant of quiet enjoyment is found in a general warranty deed.

A

True

54
Q

True/False The deed that provides the greatest protection to the grantee is the special warranty deed.

A

False. The general warranty deed provides the greatest protection to the grantee.

55
Q

True/False The bargain and sale deed is the type of deed that is used for clearing existing or potential clouds on the title.

A

False. The quitclaim deed is useful for clearing existing or potential clouds on the title.

56
Q

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

A

Police Power

57
Q

Conditions placed by developers that affect how the land can be used in an entire subdivision.

A

Restrictive Covenants

58
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

59
Q

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

A

Easement Appurtenant

60
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

61
Q

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

A

Easement By Prescription

62
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

63
Q

Unauthorized use of another person’s property.

A

Encroachment

64
Q

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

A

Gross Lease

65
Q

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

A

Net Lease

66
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

67
Q

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

A

Variable Lease

68
Q

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

A

Ground Lease

69
Q

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

A

Assignment

70
Q

A lessee leasing a property to a third party for a period of time less than the original lease. Also called subletting.

A

Sublease

71
Q

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

A

Lien

72
Q

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

A

General Lien

73
Q

A judgment lien is an involuntary lien attaching to real property when a judgment is obtained against the owner. A judgment lien is a general lien on all property of the debtor (unless specifically exempt by law) in the county where the judgment was recorded into the public records. In Florida, a judgment lien remains a lien on real property until it has been paid or expires by passage of time.

A

Judgment lien.

74
Q

Florida does not have a state income tax. However, failure to pay federal income taxes can result in a lien on property of the delinquent taxpayer. A federal tax lien, once filed, becomes a lien on all property owned by the taxpayer at the time of filing as well as on all future property acquired by the taxpayer until the lien is satisfied.

A

Income tax (IRS) lien.

75
Q

Estate tax is a federal tax on a deceased person’s taxable assets. Estate taxes are levied on the total value of a deceased person’s money and property and are paid out of the decedent’s assets before any distribution to beneficiaries. Estate tax liens are general liens because they attach to all the decedent’s property. However, only the wealthiest estates pay federal estate tax.

A

Estate tax lien.

76
Q

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

A

Specific Lien

77
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

78
Q

A lien that takes priority over all other liens.

Real estate (property) tax liens, which become a lien January 1 each year
Special assessment liens
Federal estate tax lien (at time of death)

A

Superior Lien

79
Q

Priority is based on the date of recording in the public records.

Mortgage liens
Judgment liens
Vendor’s liens
Income tax (IRS) liens

A

Junior Lien

80
Q

True/False Deed restrictions are a type of government restriction on ownership.

A

False. Deed restrictions are a type of private restriction on ownership.

81
Q

True/False Property tax liens, special assessment liens, and judgment liens are the three types of superior liens.

A

False. The three types of superior liens are property tax liens, special assessment liens, and federal estate tax liens. Judgment liens are a type of junior lien because their priority is based on the date of recording.

82
Q

True/False A property tax lien is a general lien.

A

False. A property tax lien is a specific lien because it attaches only to one property.

83
Q

True/False A mortgage lien is a voluntary lien against real property that pledges the property as security for the debt.

A

True

84
Q

In which type of deed does the grantor warrant to defend the title solely against acts by the grantor or the grantor’s representative?

A) Quitclaim
B) General warranty
C) Bargain and sale
D) Special warranty

A

D) Special warranty

85
Q

A single person dies without a will. After a period of time, the State of Florida obtained title to the property of the deceased person. What power entitled the state government to acquire the deceased person’s property?

A) Foreclosure rights
B) Escheat
C) Adverse possession
D) Eminent domain

A

B) Escheat

86
Q

Which type of lease is based on income from the tenant business?

A) Variable
B) Percentage
C) Net
D) Gross

A

B) Percentage

87
Q

A husband and wife have title to a property in both names. Which action is required to convey the title to the property?

A) Recorded
B) Signed by the grantee
C) Notarized
D) Signed by the husband and wife

A

D) Signed by the husband and wife

88
Q

A business owner has a five-year variable lease. The first year of the lease calls for rent of $25.50 per square foot based on a beginning index of 188. The index increases to 195 at the beginning of the second year. What is the new rental rate per square foot?

A) $26.75
B) $26.70
C) $26.45
D) $26.25

A

The answer is $26.45. Solution:

195 ÷ 188 = 1.037234

1.037234 × $25.50 = $26.45

89
Q

A woman has six months remaining on her lease. She assigns two of the remaining months to another person to use the property while she is on vacation in Europe. What is this called?

A) Assignment
B) Partial lease
C) Sublease
D) Variable lease

A

C) Sublease

90
Q

Which restriction is always a public restriction?

A) Restrictive covenants
B) Easement
C) Lease by a government agency
D) Eminent domain

A

D) Eminent domain

91
Q

Which alienation is voluntary?

A) Will
B) Escheat
C) Descent
D) Eminent domain

A

A) Will

92
Q

Which type of title insurance policy is transferable?

A) Mortgagor
B) Lender
C) Owner
D) Vendor

A

B) Lender

93
Q

Which type of lien is a specific lien?

A) Income tax
B) Vendor’s
C) Judgment
D) Estate tax

A

B) Vendor’s

94
Q

Requirements for a valid deed do NOT include

A) voluntary delivery and acceptance.
B) the signature of a competent grantee.
C) a granting clause.
D) a legal description.

A

B) the signature of a competent grantee.

95
Q

The owner’s title insurance policy is issued for

A) the loan balance and is transferable.
B) an amount no greater than the purchase price and is not transferable.
C) an amount no greater than the purchase price and is transferable.
D) the loan balance and is not transferable.
Explanation

A

B) an amount no greater than the purchase price and is not transferable.

Real Estate Exam! (20 decks)

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