Real Estate Law 9-10
A married couple is exempt from paying taxes on any capital gains under...?
$500,000
Andrew was pre-approved for a $200,000 loan. How much money will Andrew have to put down if he makes $275,000 offer on a property...?
$75,000
David's property is owned under the LLC 123 Bank Street LLC. If David decides to sell the property, how should the name of the seller appear on the contract...?
123 Bank Street LLC
What should a real estate agent have their client obtain before viewing any properties...?
A pre-approval letter from a lender
A condensed history, or summary of all transactions affecting a particular tract of land.
Abstract of Title
A condensed history, or summary of all transactions affecting a particular tract of land is known as a...?
Abstract of title
Which of the following is obtained as a result of a title search...?
Abstract of title
Express or implied knowledge of a fact.
Actual Notice
The express or implied knowledge of a fact is known as...?
Actual notice
This form of involuntary alienation involves the taking of property through the open, notorious, continuous, and hostile occupancy of the property...?
Adverse possession
Which of the following should be done if the seller agrees to offer the buyer a credit for defects found during the property inspection...?
Amend the original contract
When should the buyer and seller negotiate between real and personal property items...?
At the very beginning of the transaction
Any deed that recites a consideration and purports to convey the real estate; a bargain and sale deed with a covenant against the grantor's act is one in which the grantor warrants that grantor has done nothing to harm or cloud the title.
Bargain and Sale Deed
Which of the following is an example of a legal description of a property...?
Block and lot number
A term applied to the past series of transactions and documents affecting the title to a given parcel of land.
Chain of Title
The past series of transactions and documents affecting the title to a given parcel of land is known as...?
Chain of title
Which of the following items may be difficult to distinguish as real or personal property...?
Chandeliers
Title which is not encumbered or burdened with defects.
Clear Title
Title which is not encumbered or burdened with defects is known as...?
Clear title
The escrow agent typically serves as the...?
Closing agent
Title that is encumbered or burdened with defects.
Clouded Title
Title that is encumbered or burdened with defects is referred to as...?
Clouded title
Which of the following is required in a valid deed...?
Consideration
A fact, imputed to a person by law, which should have been discovered because of the person's actual notice of circumstances and the inquiry that a prudent person would have been expected to make.
Constructive Notice
In a closing statement, money to be received is referred to as a...?
Credit
In a closing statement, money to be received or credit given for money or an obligation given.
Credit
In a closing statement, an expense or money received against a credit is referred to as a...?
Debit
In a closing statement, an expense or money received against a credit.
Debit
A written document by which ownership of land is transferred from one party to another is referred to as a...?
Deed
A written document by which ownership of land is transferred from one party to another.
Deed
Which of the following is a credit reporting bureau...?
Equifax, TransUnion, Experian
The neutral third party holding funds or something of value in trust for another or others.
Escrow Agent
The neutral third party holding funds or something of value in trust for another or others is known as the...?
Escrow agent
In order to simplify the process, a real estate agent should only recommend one mortgage broker to their clients...?
F (False)
Individuals who are liable for a lot of debt will most likely obtain what type of loan...?
FHA-insured loan
A suit to quiet title is used to do which of the following...?
Fix a defect in title
A deed used to convey real property which contains warranties of title and quiet possession, and the grantor thus agrees to defend the premises against the lawful claims of third persons.
General Warranty Deed
A deed used to convey real property which contains warranties of title and quiet possession, and the grantor thus agrees to defend the premises against the lawful claims of third persons is referred to as a...?
General warranty deed
Which of the following deeds offers the most amount of protection to the buyer...?
General warranty deed
The lender's estimate of the borrower's settlement costs; RESPA is required to furnish it to the borrower at the time of the loan application.
Good Faith Estimate
A person who acquires an interest in land by deed, grant, or other written instrument is referred to as the...?
Grantee
A person who acquires an interest in land by deed, grant, or other written instrument.
Grantee
Ely is in the process of purchasing a new house. Since Ely will be acquiring title to the property, he is considered the...?
Grantee
The seller in a residential sales transaction is considered the...?
Grantor
person, who by a written instrument, transfers to another the interest in land.
Grantor
A standard settlement form required by RESPA.
HUD Form No. 1
What type of insurance do most lenders require of homebuyers...?
Homeowner's insurance
When representing a seller, what is the very first form the broker must have the seller review and sign...?
Information About Brokerage Services
Which of the following should not be included in the Special Provisions part of a contract...?
Information found in an addendum
Each page of the sales contract must be...?
Initialed
Which of the following may be prorated between the buyer and seller...?
Insurance premiums, Rents, Taxes
Transfer of title to real property as a result of a lien foreclosure sale, adverse possession, the filing of a petition in bankruptcy, or condemnation under power of eminent domain or upon the death of the titleholder, to the State when there are no heirs.
Involuntary Alienation
How does a pre-approval letter from a lender help a buyer...?
It gives the buyer an idea of how much they can afford
Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept.
Marketable Title
The seller must deliver which of the following at closing...?
Marketable title
Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept is known as...?
Marketable title
Which of the following Acts helps prevent consumers from getting charged higher than anticipated fees by lenders at closing...?
Mortgage Disclosure Improvement Act
When added to a contract, which of the following should be included in parenthesis...?
Nicknames
Items that are considered personal property should be included in the...?
Non-realty addendum
The buyer in a transaction typically hires a property inspector during which part of the closing process...?
Options period
Title insurance is commonly broken down into a lender's policy and a...?
Owner's policy
What should a buyer perform right before closing on a property...?
Perform a final walk-through
A step above prequalification, it involves verifying a purchaser's credit, down payment, and employment history.
Pre-Approval
This is a step above prequalification, it involves verifying a purchaser's credit, down payment, and employment history...?
Pre-approval
What is the first step in the loan process...?
Pre-qualification
Who should the buyer hire after having their offer accepted...?
Property inspector
The division of certain settlement costs between a buyer and seller is known as...?
Proration
The division of certain settlement costs between a buyer and seller.
Proration
To divide or prorate the taxes equally or proportionately to time of use, usually between seller and buyer.
Proration of Taxes
This refers to the dividing of taxes equally or proportionately to time of use, usually between the seller and buyer...?
Proration of taxes
A deed to relinquish any interest in property which the grantor may have, without any warranty of title or interest.
Quitclaim Deed
Which of the following Acts prohibits kickbacks and other referral fees between lenders and real estate brokers...?
RESPA
A federal law requiring the disclosure to borrowers of settlement (closing) procedures and costs by means of a pamphlet and forms prescribed by the United States Department of Housing and Urban Development.
Real Estate Settlement Procedures Act (RESPA)
RESPA does not apply to which of the following...?
Seller financing, The buyer's assumption of the seller's existing mortgage, A contract for deed
Which of the following is an example of voluntary alienation...?
Selling a property
A deed in which the seller warrants or guarantees the title only against defects arising during the period of his or her tenure or ownership of the property.
Special Warranty Deed
The effective date of a contract serves as the...?
Start date of the contract
Liens are generally prioritized based on which of the following...?
The date when the lien was recorded
Which of the following must be included in a sales contract...?
The effective date of the contract
The party's signatures in a contract must match which of the following...?
The legal names listed at the beginning of the contract
Which of the following is included in a lender's good faith estimate...?
The lender's loan origination fee
Which of the following is a common mistake found in contracts...?
The parties do not initial each page of the contract, The parties are not listed by their legal names, The legal description of the property is not included
Which of the following is needed in order to have an executory sales contract...?
The signatures of all parties involved in the contract
The evidence of right which a person has to the ownership and possession of land is referred to as...?
Title
The evidence of right which a person has to the ownership and possession of land, commonly considered as a history of rights.
Title
Insurance against loss or damage resulting from defects or failure of title to a given parcel of real estate.
Title Insurance
An examination of public records, laws, and court decisions to disclose the current facts regarding the ownership of real estate.
Title Search
Insurance against loss or damage resulting from defects or failure of title to a given parcel of real estate is known as...?
Title insurance
An examination of public records, laws, and court decisions to disclose the current facts regarding the ownership of real estate is known as a...?
Title search
The act of reviewing loan documentation and evaluating the borrower's ability and willingness to repay the loan and sufficiency of collateral value of the property is referred to as...?
Underwriting
The act of reviewing loan documentation and evaluation the borrower's ability and willingness to repay the loan and sufficiency of collateral value of the property.
Underwriting
An appraiser will document the appraised value of a house on the...?
Uniform Residential Appraisal Report
How should a property be described in a typical sales contract...?
Using the legal description of the property
Transfer of title freely by the owner.
Voluntary Alienation
