Chapter 6 recordation, abstracts, and title insurance Quiz

33) you are standing in the backyard of a house that is offer for sale. You want to buy the house, but the fence around in the backyard appears to encroach on to the land of the next door's Neighbors. Which of the following would normally disclose such an encroachment? A. Abstract of title. B. Standard title insurance policy. C. Attorneys option of title. D. Current survey.

A current survey would disclose any encroachments on the property, but these would not be disclosed by in the abstract of Life, title insurance or an attorney's opinion of title

35) which of the following is true of a lender's policy of title insurance? A. The face amount of the policy is always equal to the acquisition of the property. B. the coverage increase as the loan is amortized. C. it makes expectations for claims that could have been anticipated by a physical inspection of the property. D. it is assignable to subsequent holders of the mortgage loan

A lender policy of title insurance is issued in an amount equal to the original amount of the mortgage loan, not the acquisition cost

27) protection against incomplete or deactive records of the title to land can best be obtained by securing? A. an Abstract of title. B. Title insurance. C. An attorney's option. D. A title Searchers opinions

Title Insurance provide the best protection against any incomplete or defective records of the title to land

45) a torrents certificate of title is more meaningful than and attorneys certificate of title because the? A. Torrens certificate is founded on judicial decision. B. Torrens certificate is founded on an option of the condition of the title. C. attorney is being compensated for his option. D. Torrens system is streamline

a Torrens certificate of title is found on a Judicial decision an attorney certificate of title is found on an option of the condition of the title

31) which of the following would commit an insurance company to issue a title policy? A. Preliminary title report. B. Binder. C. Lawyers option. D. Abstract of title.

a binder is a commitment to ensure the title to the property.

18) when one has trace the ownership of a parcel of land to the beginning of it recorded history, without reference to any incumbrances or other documents affecting the title, the result is an? A. Abstract of title. B. History of title. C. Chain of title. D. Record of title.

a chain of title is a historical record of ownership without reference to encumbrances or other documents affecting the title

11) which of the following would NOT usually be placed on record? A. Mortgage on the property. B. Month-to-month rental agreement. C. Deed to the property. D. Option to the purchase the property.

a month-to-month lease is not usually recorded. Deeds, mortgages, and options are usually recorded.

13) a prospective purchaser of real estate is presumed by law to have expected the? A. Building system B. public records pertaining to the land. C. Insurance policies covering the real estate. D. Financial status of the current owner of the real estate

a prospective purchaser of real estate is presumed to have expected both the land itself and the public records pertaining to the land

43) regarding a title suit, all of the following are true EXCEPT? A. it is judicial proceeding. B. It removes all claims to title other than the owners. C. it quiets those without a genuine interest in the property. D. It can be used to clear up a dispute title

a quiet title suit does not remove legitimate claims to title such as outstanding mortgages. it is a Judicial proceeding which requires the claim of those without a genuine interest in the property

46) a quiet title suit is necessary for a? A. Torrent certificate. B. Marketable title act. C. Title search. D. Abstract.

a quiet title suit is necessary for a Torrens certificate. Marketable title acts do not require a suit

24) a summary of all recorded documents affecting title to a parcel of land is called? A. A chain of title. B. An Abstract of title. C. A title report. D. A title insurance policy.

a summary of all documents affecting title to given parcel of land is known as an abstract of title

36) a title insurance policy issued for the protection of a lender who has taken real estate as collateral for a loan is called? A. A lender policy. B. Mortgage insurance. C. An owners policy. D. A borrower's policy.

a title insurance policy issued for lenders protection is called a lender's policy

4) once a person is aware of another's rights or interest in property, that person is said to have? A. Constructive notice. B. Legal notice. C. Inquiry notice. D. Actual notice.

actual notice is gained by what one has actually seen, heard, read or observed

16) in completing a title search, which of the following would an abstracter do first? A. check the grantor index to a certain that the present owner had not previously conveyed to someone else. B. check the grantee index to verify the present owners claim to title. C. check other public records such as court records, liens indexes, judgment rolls, and lispendens index D. trace the chain of title back to the original sale or Grant of land

an abstract will usually begin a title search by checking the grantees index, then The grantor index, then tracing the title back to its origin and finally checking the other public records as appropriate

26) S, an abstract or, repair the abstract on property being conveyed to B. Should B's titled later proved to be defective, s could be held liable if the title defense was based on? A. a forged deed and the chain of title. B. a spouse unextinguished down rights. C. an unrecorded deed to the property. D. A mistake do to negligence in searching the title

an abstracter is responsible for mistakes due to negligence, but is not held responsible for forgot it Deeds, unextinguished dower rights or unrecorded deeds

25) in the normal course of events, when an abstract of title is sent to an attorney for examination, the attorney will render a? A. Option of title based on the facts contained in the abstract. B. certificate of title which guarantees the title to be a recorded in the abstract. C. Survey of title based on the abstract. D. Title insurance policy commitment

an attorney's record as to who holds the fee title to a property and any rights or interest held by others is known as an option of title

42) which of the following will usually provide the greatest Assurance to an owner that the title to his property is marketable? A. Attorney certificate of title. B. Owners policy of title insurance. C. preliminary title report. D. Mortgagee's policies of title insurance

an owner's policy of title insurance provides greater Insurance of marketable title than an attorney certificate of title, a preliminary title report of a mortgagee's policy of title insurance

8) an unrecorded deed to land is binding upon? A. the parties to the deed B. subsequently purchasers C. the public generally D. subsequently lenders

an unrecorded deed is binding up the parties to the deed, but not to subsequent purchaser, subsequent lenders, or the public generally

41) the purchase of title insurance eliminates the need for? A. Casualty Insurance. B. A survey of the property. C. Constructive notice. D. None of these.

as soon as Title Insurance insures only the title to the property, the need for Casualty Insurance, constructive notice and a survey of the property are not eliminated

21) which of the following would NOT ordinarily be checked and searching a title to a parcel of land? A. Judgement records. B. Lien records. C. Chattel mortgage records. D. Liz pendens index

chattel mortgage records are records of mortgage on personal property and would not normally be checked when searching Land Titles

15) the purpose of having a person signature acknowledge is to? A. Construct a paper trail for a transfer tax purposes. B. Make the document admissible to the public record. C. Notify family members directly of the signature. D. Provide a seal from the notary public, without which the property may not be financed.

documents are acknowledged to make certain that the person signing the document is the same person as the one named in the document, that the siding was voluntary and to make the document admissible for recordation

7) documents are recorded by? A. Placing the original document on the file in the recorders office. B. Submitting the original document which the photocopy and placed on file. C. Posting a photo copy of the original document on the property. D. Posting the name and mailing address of the owner on the

documents are recorded by submitting the original documents which is then photocopied and placed on fire

17) instruments are recorded in the public records and what order? A. Alphabetical order, based on the grantees last name. B. chronological order, as received for recordation. C. according to the date of instrument. D. alphabetical order, based on the grantor's last name

instruments are recorded in chronological order, as receive for recordation

14) deeds and other instruments which affect Land Title should be recorded? A. Immediately after delivery or execution. B. Within 5 business days, excluding Sundays. C. Just prior to putting the property up for sale. D. Only if the owner compensates selling the property.

instruments should be recorded immediately after delivery to provide constructive notice and to establish property of claim

6) instruments affecting land transfers are recorded in the jurisdiction in which the? A. Parties to the instrument maintain legal residence. B. Land is situated C. instrument is created. D. Tax rate is lowest

instruments which affect land transfers are recorded by the jurisdiction in which the land is situated

38) should a title insurance company elect to fight a claim in court, the legal expenses incurred will be? A. deducted from the coverage under the policy. B. assume by the title insurance company without affecting the coverage. C. Shared by the insured and the insurance company. D. Paid by the insured

legal expenses incurred fighting a court claimed are assumed by the title insurance company and are not deducted from any letter settlement with the insured

40) marketable title to real estate is title which is? A. Absolutely free of any possible defect. B. Fee of Reasonable Doubt as to ownership. C. Issued by a court after completion of a quiet title action. D. insured by a title insurance company

marketable title is title which is free of Reasonable Doubt as to ownership of the property.

23) a person who searches Land Titles as an occupation may be known as a? A. Abstractor B. Title paralegal. C. Title surveyor. D. Court officer.,

one who is engaged and searching Land Titles as an occupation May be referred as an abstractor or as a title searcher

22) a lis pendens index is? A. an index of existing leases on property. B. And index of pending lawsuit. C. A trace index. D. A train of title.

pending lawsuits are indexed in the lispendens index

10) prioritt of a recorded instrument is determined by the day of? A. acknowledgement B. delivery to the grantee. C. The instrument. D. recordation

proprietary of recorded instrument is established by the date of recordation

2) notice provided by recording an instrument in the public record is? A. Real Property noticed. B. Actual notice. C. constructive notice. D. County Court notice

recording an instrument in the public records provides both legal notice and constructive notice

12) records in the public recorder's office may be inspected by the? A. Attorney's only. B. The general public. C. Only government Personnel. D. Court staff only

records in the Public Records Office are public records and available for inspection by anyone

19) among the sources which might have to be check to establish and unbroken chain of title would be? A. Criminal court records. B. Title Insurance records. C. County Income records. D. Judgment rolls.

records of the Civil courts, probate courts, mortgage records and judgement rolls, all might have to be check to establish an unbroken chain of title

39) a homeowner has a title insurance policy in the amount of $30,000 on his home. A claim was filed against the property and the title insurance company paid out $10,000 to settle the claim. The coverage under the policy will continue at? A. $10,000. B. $20,000. C. $30,000. D. $40,000.

the $10,000 pay to settle the claim would be deducted from the coverage, leaving $20,000 coverage remaining

37) when both and owners and a lender's policy for title insurance I purchase simultaneously? A. The cost will be the total of normal premiums for both policies. B. The combined cost is slightly more than for an owners policy alone. C. There is no extra charge for the lender's policy. D. The cost of the lender's policy is deducted from the owners policy

the combination cost for both and owners and Lenders Title insurance policy is slightly more than the cost of an owner's policy alone

20) the name of the borrower would be file alphabetically in the? A. mortgage index. B. Mortgagor index. C. Liz pendens D. Lenders index

the name of the borrower would be filed alphabetically in the mortgagor index

29) title insurance companies were originally organized to provide protection for? A. The buyer of real property. B. The seller of real property. C. The real estate agent. D. Attorneys and abstractors.

the original purpose of title insurance was to provide protection for attorneys and abstracters

34) premium for a title insurance policy is? A. Paid annually. B. Paid semi-annually. C. A single premium, paid upon Insurance. D. Including in the monthly mortgage payment.

the premium for a title insurance policy is a single premium, paid only upon insurance

5) the public recorder's office? A. Serves as a central information system for documents pertaining to interest in land. B. Is the agency of the federal government. C. Is an agency of the state government. D. Is accessible to attorneys only

the public recorder's office is a central information station for documents pertaining to an interest in land. It keeps up by the local, not the federal, government.

1) the statue of frauds established that requirements that? A. written Deeds be used to show transfer of ownership. B. all Deeds be recorded in the public records. C. A system of public records be established. D. Anyone claiming ownership of land visibly occupy the land

the statue of frauds require that written Deeds be used to show ownership.

3) an investor is considering the purchase of 100 unit apartment building that is fully occupied. Which of the following would be true? A. The investors should search the public records for copies of the tenants rental agreements. B. No chain of title report is needed because the property is an income property. C. The tenants are charged with inquiring as to the rights of the new owner. D. By their presence, the tenant are given constructive notice of their right to be there

the tenants give constructive notice by their occupants and the investor should make inquiry as to the rights of each tenant. Apartment rental agreements are rarely reported

30) before I title insurance company will issue a title insurance policy on a property? A. The property must be physically inspected by a representative of the title insurance company. B. A title report must be prepared showing the apparent condition of the title. C. The improvements on the property must be insurance. D. the deed of conveyance must be prepared.

title insurance companies require a title report showing that apparent condition of the title before sharing a title insurance policy. No physical inspection of the property is required

47) title insurance policies are issued to protecting against something? A. Happening in the distant future. B. Happening in the foreseeable future. C. Which happens in the past. D. Which happened in the past 40 years.

title insurance cover events that happened in the past but which are discovered after taking title the property

28) protection against a lost occasioned by which of the following would not be covered by title insurance? A. Forge Deeds, or Deed incompetent. B. undistinguished downer or courtesy rights. C. Claims by undisclosed or missing hairs. D. Destruction of improvements by a tornado.

title insurance is not Casualty Insurance and does not insure against a loss arising from any form of casualties such as a tornado, fire, Etc