Chapter 1 Quiz

A condensed history of title, consisting of a summary of the original grant and all subsequent conveyances and encumbrances relating to a particular parcel of real estate, is called an: Select one: a. Abstract of title. b. Accounting of title. c. Assurance of title. d. Affidavit of title.

a. Abstract of title Chain of title is not as complete. Affidavit is the swearing that there have been no encumbrances incurred since the title search

All are involuntary methods of conveying property EXCEPT: Select one: a. Quitclaim deed. b. Escheat. c. Condemnation. d. Adverse possession.

a. Quitclaim deed

An abstract of title is a full summary of the title history, with a statement of all recorded liens and encumbrances. Select one: a. True b. False

a. True

Bare legal title lacks the usual rights and privileges of ownership. Select one: a. True b. False

a. True

Inquiry notice is legal notice presumed by law. Select one: a. True b. False

a. True

Most incorporated cities and counties in the United States have land records. Select one: a. True b. False

a. True

Alienation refers to change of ownership, not just by a deed. Select one: a. True b. False

a. True Alienation refers to any change of ownership.

A title insurance policy would likely protect the policyholder against each of the following, EXCEPT: Select one: a. Unrecorded easements. b. Recorded deeds that were forged. c. Recorded deeds signed by a mentally incompetent grantor. d. Title problems caused by a confusion over similar names.

a. Unrecorded easements. Title insurance policies usually do not cover unrecorded documents.

Which best describes marketable title? Select one: a. reasonably free from the risk of litigation over possible defects b. the right to obtain ownership to property when title is held in another's name c. proof of ownership d. statement of opinion of the title's status

a. reasonably free from the risk of litigation over possible defects

Which is an example of constructive notice? Select one: a. recording documents in the land records b. telling a person that you have an easement across his land c. Receipt of a building permit. d. a neighbor telling you about a mineral right he has to your land

a. recording documents in the land records

An owner's title insurance policy will protect against: Select one: a. The loss of property through foreclosure. b. A person who has a superior claim. c. Damage caused by a fire. d. Flood damage.

b. A person who has a superior claim. Protects circumstances before effective policy date.

What is the most common way to determine if there are any encumbrances related to a particular piece of property? Select one: a. Obtain a certificate of title. b. Conduct a title search. c. Prepare an abstract of title. d. Request an affidavit of title from the court.

b. Conduct a title search.

The term "alienation" most directly refers to: Select one: a. Foreclosure. b. Conveyance of property. c. Ownership. d. Chain of title.

b. Conveyance of property. Alienation means to sell or convey title.

An acknowledgement means that you agree to what you signed. Select one: a. True b. False

b. False An acknowledgement is a formal declaration made by a person who has signed a document before an authorized officer, usually a notary.

Constructive notice means that an individual has seen or been given actual information or documents. Select one: a. True b. False

b. False Constructive notice means information has been made available to the public.

Surveys just measure the boundaries of land. Select one: a. True b. False

b. False Surveys measure boundaries, locate improvements, and determine the existence of easements, encroachments and setbacks.

Which of the following is NOT true about title insurance? Select one: a. The policy will include a list of exclusion. b. It is the same 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 is the same as homeowner's insurance.

Title to a property which is free from reasonable doubt as to who is the owner is called: Select one: a. Clear title. b. Marketable title. c. Clean title. d. Color of title.

b. Marketable title.

The system which provides notification of ownership rights and claims by certain creditors against real property is created by the: Select one: a. Federal constitution. b. State recording act. c. Federal legislation. d. State statute of frauds.

b. State recording act.

A type of land title system whereby owners receive a registered certificate of title through the court is the: Select one: a. Basel system. b. Torrens system. c. Judicial order system. d. Common law system.

b. Torrens system.

Which is NOT an inherent title right? Select one: a. possession b. right to have a pig farm c. occupancy d. use

b. right to have a pig farm

The legal process of "tacking" relates to an adverse possession claim under: Select one: a. Eminent domain. b. Descent and distribution. c. Color of title. d. Assemblage.

c. Color of title

A cloud on title can be removed by: Select one: a. A quitclaim deed only. b. A quiet title action only. c. Either a quitclaim deed or a quiet title action. d. Neither a quitclaim deed nor a quiet title action.

c. Either a quitclaim deed or a quiet title action.

Joe Moocher found an abandoned farm, moved in, and notified the owner of his possession and use of the property. Which of the following actions would allow Joe to file an adverse possession claim? Select one: a. If the owner gives Joe permission to stay on the property. b. If the owner serves Joe with a legal notice ordering him to leave. c. If the owner does nothing. d. If Joe pays the owner rent.

c. If the owner does nothing. All other actions would stop adverse possession claims.

A buyer is considering the purchase of some vacant land. The buyer notices a well-worn path near the edge of the property line. What type of notice would this buyer have regarding an easement across this property? Select one: a. Actual notice. b. Constructive notice. c. Inquiry notice. d. No notice whatsoever.

c. Inquiry notice.

Which of the following protects against defects in a title? Select one: a. Homeowner's insurance. b. Private mortgage insurance (PMI). c. Owner's title insurance. d. FHA mortgage insurance (MIP).

c. Owner's title insurance. Title insurance protects title. Homeowners insurance protects against physical ailments.

Which of the following is NOT true about a title search? Select one: a. It is an examination of public records. b. The purpose is to determine defects in the chain of title. c. The title searcher goes back at least 100 years. d. It is usually performed by a title company or title abstractor.

c. The title searcher goes back at least 100 years.

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

Which of the following is not a type of title? Select one: a. bare legal title b. naked title c. full title d. equitable title

c. full title

Which is NOT a cloud on title? Select one: a. a valid first mortgage b. a recorded contract for deed under which the buyer has defaulted but the contract has not been removed c. lack of a recorded certificate of title insurance d. a recorded mortgage that has been paid in full but not released

c. lack of a recorded certificate of title insurance

An abstract of title would contain: Select one: a. The name of the original owner. b. A record of all encumbrances, liens, mortgages and court actions. c. A record of any transfer of title by devise. d. All of these choices.

d. All of these choices.

A document that is based on a full examination of the public record but frequently only identifies the present owner of record and lists only the existing encumbrances is called a(n): Select one: a. Abstract of title. b. Title search. c. Title insurance summary. d. Certificate of title.

d. Certificate of title

One would normally use a survey to identify all of the following EXCEPT: Select one: a. Legal location of the property. b. Violations of the zoning set-back ordinances. c. Encroachments of the property. d. Liens on the property.

d. Liens on the property. A survey uncovers physical things such as set-back violations and encroachments.

Samuel is interested in purchasing a parcel of land and wants to examine any recorded documents relating to this parcel of land. Samuel may do this with authorization from: Select one: a. The current owner. b. The civil court having jurisdiction. c. A magistrate. d. No one.

d. No one. It's public information.

Each of the following statements about title is true, EXCEPT: Select one: a. A seller who has title which is reasonably free from doubt has marketable title. b. A seller who has color of title has a defect against the title. c. The chain of title is the history of conveyance and encumbrances of the property. d. The Torrens System is the most common method of recording title in the United States.

d. The Torrens System is the most common method of recording title in the United States. It is somewhat rare.