Transfer of Title
All of the following persons may act as escrow agents except: Select one: A. brokers B. neutral third persons C. salespersons D. attorneys
C. salespersons
A house sold for $109,000, with the buyer making a 20% down payment. The grantor's tax is based on the: Select one: A. downpayment B. loan amount C. selling price D. none of the above
C. selling price
What is the covenant in a deed where the grantor guarantees that no one has any interest in the property that will disturb the grantee's possession? Select one: A. the covenant of further assurances B. the covenant against encumbrances C. the covenant of quiet enjoyment D. the covenant of seisin
C. the covenant of quiet enjoyment
A court action to remove a cloud from the title is called an action or suit: Select one: A. for specific performance B. for title insurance C. to quiet title D. of legal injunction
C. to quiet title
What is the biggest risk to a lender when it forecloses on a mortgage? Select one: A. It will not be able to collect from second trust holders B. It cannot recover enough money to satisfy the existing debt C. It is difficult to sell foreclosed property D. The lender could assume the role of property manager
D. The lender could assume the role of property manager
A quitclaim deed may be used to: Select one: A. transfer ownership of a fee simple estate B. transfer interest in a life estate C. terminate an easement D. any of the above
D. any of the above
What term best describes the process of taxing real estate according to its value? Select one: A. ad valorem B. assessment C. appraisal D. special assessment
A. ad valorem
A condensed history of the documents affecting real property is known as: Select one: A. the chain of title B. an abstract of title C. an abstract of judgments D. an affidavit of title
B. an abstract of title
Which of the following statements about title insurance is NOT true? Select one: A. the policy will include a list of exclusions B. it serves many of the same functions as homeowner's insurance C. it will insure the owner against losses arising from title defects D. it will generally include exclusions for unrecorded easements
B. it serves many of the same functions as homeowner's insurance
Each closed real estate transaction requires a report to be filed with the IRS on Form 1099-S. Required information includes the seller's name, social security number, and: Select one: A. buyer's name and social security number B. the selling price of the property C. the name of the mortgage lender D. a description of the property
B. the selling price of the property