Unit 7✅

An owner decides to sell property and discovers that there is a lien on the title for a swimming pool that the owner paid off 10 years ago. The pool company is out of business. What is the owner to do? A) The seller could bring a suit to quiet title. B) The owner will not be able to sell the property. C) The buyer will have to pay off the lien. D) None of these are possible.

A

At a typical closing, how many title policies are issued? A) Two B) One C) Four D) Three

A

Extended coverage in an owner's title insurance policy would cover which of the following? A) Unrecorded liens not known by the policyholder B) Changes in land use brought about by zoning ordinances C) Defects and liens listed in the policy D) Defects known to the buyer

A

Proof of ownership is A) evidence that title is marketable. B) subjective and depends on what the buyer requires. C) the deed from seller to buyer. D) necessary only if there is a cloud on the title.

A

Public records can help establish which of the following? A) All of these B) Liens C) Encumbrances D) Ownership

A

Who is usually responsible for providing marketable title to the property? A) The seller B) The title company C) The buyer D) The mortgage company

A

A buyer who wants to know whether the title for a property is in good standing would order A) a deed of trust. B) an abstract. C) a suit to quiet title. D) a deed.

B

A deed that has not been recorded will NOT provide A) competent parties. B) constructive notice. C) an essential element. D) actual notice.

B

A title company will NOT cover against defects A) caused by incompetent grantors. B) that appear in a title search. C) resulting from an incorrect marital statement. D) caused by forged documents.

B

An examination of the public records to determine the relevant documents related to transfers of a property is called A) a chain of title determination. B) a title search. C) a marketable title inspection. D) a public records examination.

B

At MOST closings, what is the number of title policies issued? A) Six B) Two C) Four D) Three

B

Defects and liens listed in the title policy are included in the policy as A) credits. B) exclusions. C) debits. D) coverages.

B

In some areas of the country, acceptable proof of title is an abstract and A) sworn statement of the current property owner. B) attorney's opinion of title. C) deed. D) judicial opinion.

B

Standard coverage in an owner's title insurance policy would cover all of the following EXCEPT A) forged documents. B) changes in land use brought about by zoning ordinances. C) incompetent grantors. D) defects found in public records.

B

The encumbrances and defects that will NOT be insured against under a title insurance policy are included in A) the schedule of defects. B) the list of exclusions. C) the citation clause. D) the nonexclusionary clause.

B

What does a suit to quiet title do? A) Determines damages B) Resolves clouds on title C) Forecloses on behalf of a lender D) Divides property among the owners

B

Which of the following would NOT be acceptable evidence of ownership? A) Abstract B) Deed to the current owner signed by the last seller C) Title insurance policy D) Attorney's opinion

B

Which of the following would cause a cloud on title? A) Gap in the chain of title B) All of these C) A recorded lien that was paid off but not released D) Missing the name of the grantor

B

Which statement BEST explains why instruments affecting real estate are recorded? A) Failing to record will void the transfer. B) Recording gives constructive notice to the world of the rights and interests claimed in the identified parcel of real estate. C) Recording proves the execution of the instrument. D) The instruments must be recorded to comply with the terms of the statute of frauds.

B

A cloud on the title to a parcel of real estate is A) removable by any previous owner of the property. B) usual and no hindrance to transferring title to the property to a new owner. C) resolved by an action to quiet title. D) a gap in the chain of title that can be cured by filing a notice of cloud on the title.

C

A document that protects against hidden risks, such as forgeries and loss due to defects in the title, and is subject to specific exceptions is called A) an abstract of title. B) a certificate of title. C) a title insurance policy. D) a chain of title.

C

A standard title search would reveal all of the following EXCEPT A) property tax liens. B) recorded easements. C) parties in possession. D) a deed restriction of record.

C

Standard title insurance protects the buyer from A) defects known to the buyer. B) all of these. C) defects found in public records. D) unrecorded liens not known by the policyholder.

C

Where are the encumbrances and defects that will NOT be insured against under a title insurance policy stated? A) Citation clause B) Nonexclusionary clause C) List of exclusions D) Schedule of defects

C

A title that has no defects that could carry over as a problem for the next property owners is called A) an encumbered title. B) a certified title. C) a suit to quiet title. D) a marketable title.

D

Chain of title is MOST accurately defined as A) a report of the contents of the public record, including all legal proceedings, regarding a particular property. B) an instrument or document that protects the insured parties (subject to specific exceptions) against defects in the record of a property's ownership. C) the examination of the record and hidden risks such as forgeries, undisclosed heirs, errors in the public records, and so on. D) the record of a property's ownership.

D

MOST contracts state that the seller is responsible for providing what type of title to the property? A) Clear B) Indefeasible C) Absolute D) Marketable

D

When A recorded the deed received from B, the legal consequence of the recording was to A) give B assurance of holding a first lien. B) transfer title. C) protect B from existing adverse claims. D) serve as constructive notice of A's interest.

D

Which of the following occurs under the Torrens system? A) Title passes when the grantee's application for registration has been approved and the real estate has been registered. B) The original deed is mailed to the buyer after it has been registered. C) The Torrens official performs exactly the same functions as the recorder of deeds. D) The registration of a title can be canceled by the owner at any time.

D