RE Unit 9

The person who prepares an abstract of title for a parcel of real estate A. Writes a brief history of the title after inspecting the county records for documents affecting the title B. Issues a certificate of title C. Inspects the property D. Insures the condition of the title

A

Which of the following is acceptable as the evidence of marketable title? A. A trust deed B. An affidavit C. A title insurance policy D. A warranty deed

A title insurance policy

A title search in the public records may be conducted by A. Anyone B. Attorneys and abstractors only C. Attorneys, abstractors, and real estate licensees only D. Anyone who obtains a court order under the freedom of information act

A. Anyone

Which of the following are traditionally covered by a standard title insurance? A. Improperly delivered deeds B. Unrecorded rights of parties in possession C. Unrecorded liens not known to the policy holder D. Changes in land use due to zoning ordinances

A. Improperly delivered deed

When a claim is settled by a title insurance company, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is known as what? A. Subrogation B. Abstract of title C. Escrow D. Subordination

A. Subrogation

A purchaser went to the county building to check the records, which showed that the seller was the grantee in the last recorded deed and that no mortgage was on record against the property. The purchaser may assume which of the following? A. The seller did not mortgage the property B. The seller has a good title C. No one else is occupying the property D. All taxes are paid and no judgement are outstanding

A. The seller did not mortgage the property

If a property has encumbrances, it A. Cannot be sold B. Can be sold if a buyer agrees to take it, subject to the the encumbrances C. Cannot have a deed recorded without a survey D. Can be sold only if title insurance is provided

B

The body of law that covers such topics as security agreements, financing statements, and bulk transfers is the A. Parol evidence rule B. Uniform Commercial Code C. Statue of Limitations D. American Land Title Association

B

The documents called title evidence include A. Abstract title B. Title insurance C. Warranty deeds D. Security agreements

B

When the title insurance company settles a claim, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is known as A. Surety bonding B. Subrogation C. Caveat emptor D. Subordination

B. Subrogation

To give notice of a security interest in personal property items, a lien holder must record which of the following? A. Security agreement B. Chattel agreement C. Financing statement D. Quitclaim deed

C. Financing statement

A title insurance policy with standard coverage generally covers all the following EXCEPT A. Incompetent grantors B. Incorrect marital statements C. Rights of parties in possession D. The forged documents

C. Rights of parties in possession

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

D

The date and time a document was recorded help establish which of the following? A. Subrogation B. Marketable title C. Chain of title D. Priority of rights

D

The part of the title insurance policy that sets forth all of the encumbrances and defects that will NOT be insured against is called the A) schedule of defects. B) citation clause. C) nonexclusionary clause. D) exclusions.

D) exclusions.

To be eligible for recording in PA, a document must be in writing, properly executed and A. The signature verified B. Countersigned C. Witnessed D. Acknowledged

D. Acknowledged

Evidence of the kind of estate and all liens against a parcel of real estate can usually be proven by A. A foreclosure suit B. A recorded deed C. A court suit for specific performance D. One of the forms of proof of ownership

D. One of the forms of proof of ownership

When a title insurance policy is being issued, the public records are searched and the title company's record of title is continued to date. When the title examination is complete, the title company notifies the parties in writing of the condition of the title. This notification is referred to as a. a chain of title b. a report of title or commitment for title insurance c. a certificate of title d. an abstract

b. a report of title or commitment for title insurance After examining public records, the title insurance Company issued what may be called a preliminary report of title or a commitment to issue a title policy.

A couple is frantic because they cannot find their deed and now want to sell the property. They a. may need to file a suit to quiet title b. will have to buy title insurance c. do not need the original deed in order to sell, if it was recorded d. should execute a replacement deed to themselves

c. do not need the original deed in order to sell, if it was recorded If the deed has been recorded when S took title her interest is a matter of public record; he does not need the original document in order to transfer title to a purchaser.

A seller delivered title to a buyer at closing. A title search had disclosed no serious defects, and the title did not appear to be based on doubtful questions of law or fact or to expose the buyer to possible litigation. The seller's title did not appear to present a threat to the buyer's quiet enjoyment, and the title insurance policy provided was sufficient to convince a reasonably well-informed person that the property could be resold. The title conveyed would commonly be referred to as a(n) A. An abstract of title B. A certificate of title C. An attorney's opinion of title D. A marketable title

marketable title