Real Property

A person's principal place of residence is in Chicago. He purchased a 200-acre farm in Kentucky. The title search showed that the farm was located in Boone County, Kentucky, and Kenton County, Kentucky. The deed should be recorded in

Boone and Kenton counties in Kentucky

At a closing the buyer received a deed in which the grantor implied possession and ownership of the property. The buyer MOST likely received a

bargain and sale deed

A permanent reference monument used to establish elevations and altitudes above sea level is a

benchmark

A buyer purchased property but did not record the deed. Under these circumstances, the

buyer's interest is not fully protected against third parties.

A buyer could learn the exact boundary lines of a property by

paying for a stake survey

Personalty or chattels refer to

personal property

The type of legal description that would MOST likely be used to subdivide a tract of land for the development of a subdivision, or that is used to describe a vacant city lot, is the

lot and block

An appraiser has measured a building to compute the GLA. This means the appraiser measured the gross living area

above grade

The principle of appraising, which states that the maximum value is achieved when the property is in harmony with its surroundings, is the principle of

conformity

The survey that would have a POB and usually uses feet and inches as the units of measurements, is the

metes and bounds

When an owner sold a parcel of real estate, be gave the buyer a quitclaim deed. On receipt of the deed, the buyer may be certain that

all of the owner's interests in the property, as of the date of the deed, belong to the buyer

The owner gave the buyer a deed, which guaranteed that the property was not encumbered during the time the owner held title, except as noted in the deed. The type of deed the owner gave the buyer is a

special warranty deed

Sales or financing concessions, location, age and condition are example of

specific data

All of the following terms are associated with the economic characteristics of real estate EXCEPT

license

Which of the following BEST describes a lis pendens notice

A recorded notice that a property is in litigation that could result in a future lien being placed on the property

Which of the following covenants would NOT be found in a general warranty deed?

Covenant to renew

Which of the following would NOT be associated with testate succession?

Descent

Which of the following transfers is an involuntary alienation of property?

Eminent domain

Which of the following is TRUE regarding an abstract of title?

It contains information taken from public records

Which of the following is NOT a method that could be used to transfer ownership?

Lease

Mr. and Mrs. Buyer declined to purchase an owner's title policy, but the lender required them to purchase a lender's title policy. Six months after the closing, a man knocked on their door. He explained that he had an ownership interest in the property because his wife sold the property while he was in another country. The man at the closing table, who said he was the husband, was not. If the man's claim is true, are the buyers covered under the lender's policy?

No, because the buyers are not covered by the lender's policy

Which of the following is NOT usually prorated between buyer and seller at the closing?

Recording charges

Which of the following legal descriptions must include airspace above a datum?

Survey of a condominium

An owner transfers property to a buyer with a special warranty deed. Which of the following is TRUE?

The owner warranties are limited to the time he owned the property

An owner signed a deed conveying her property to her best friend. She told no one and placed the deed in her safe-deposit box. Several months later, she died intestate and the deed was found. Who receives the property?

The owner's heirs, as determined by the laws of descent and distribution

Which of the following is TRUE regarding a deed and title?

The purpose of a deed is to convey title from the grantor to the grantee

Which of the following statements is TRUE regarding title insurance

There are two types of title polices that may be purchased. The owner's policy covers the owner, while the mortgagee's policy covers the lender.

Which of the following is FALSE regarding taxes?

Unpaid ad valorem taxes could create a general lien on the property

While searching the internet, a buyer found property that she was interested in buying. State laws require the seller to disclose in the deed the actual selling price of the property. Can the buyer go to the county land records, conduct her own title search on the property, and determine what the seller paid for it?

Yes, because recorded records are public documents

At the closing table, the grantor executed a notarized deed. The grantee accepted the deed and took possession. Six months later, the grantor performed a title check and noticed that the grantee had not recorded the deed. Is there a valid transfer between the parties?

Yes, the grantor signed and the buyer accepted a notarized deed, so the transfer is valid between the parties

A buyer wishes to take title to a property with a deed that best protects his interest. The buyer should ask for

a fee simple interest conveyed by a warranty deed

All of the following documents would MOST likely be recorded EXCEPT

a sales contract

The state, county, and municipal sales tax is many times used as general revenue and is normally a debit to the seller on the Closing Disclosure. It is sometimes called a documentary stamp tax and may also be called

a transfer tax

An owner is entitled to all land that accumulates from the deposit of soil by the action of water. The deposits of the additional soil are called

alluvium

An annual crop that is considered personal property is called

an emblement

All of the following are intended to convey legal title to real estate EXCEPT

an equitable title

An appraiser is hired to develop and communicate

an estimate of a property's market value

The principle of appraising, which states that a property's value will adjust with any change such as a change of zoning from residential to commercial, or a factory closing, is the principle of

anticipation

An appraiser does NOT

average the prices of properties that have recently sold

Expenses involved in the closing of a real estate transaction are shown on the settlement as a

debit to either the buyer or the seller

A closing is scheduled to take place April 15. In January, the owner paid the taxes for the entire year, and the buyers are assuming responsibility for taxes attributable to the period following the closing. At the closing, on the settlement statement, the adjustment made for property taxes appears as a

debit to the buyer and a credit to the seller

Some time ago, a special assessment was levied against a property for sidewalk and street improvements in front of a house. Under the agreement with the purchaser, the buyers will not assume the special assessment. If the assessment has not been paid off prior to the closing, the amount remaining due will appear as a

debit to the seller

A testamentary trust means the trust was established by a

deceased person's will

The four elements of value are

demand, utility, scarcity and transferability

Location or situs, is one of the major factors in determining the value of a property. Another factor that the appraiser will review is the ability of the community to attract income and business. This is called the community's

economic base

Rising interest rates are an example of

external obsolescence

Economic, locational, environmental, and external obsolescence refer to

factors affecting value outside of the propertys boundary lines

Oversized or undersized sections are called

fractional sections

The linear measurement of a property along the street line or water line is

front footage

A house built in the 1940s has never had any of the electrical panels updated. this appraiser would classify this aspect of the house as

functional obsolescence

The survey that uses the terms check, township, and sections is the

government survey

For a deed to be valid, the

grantor must be legally competent

The life cycle of a community is defined by stages of development. These include

growth, stability, decline and gentrification

The words to have and to hold in a deed define the ownership that is being transferred. This phrase is called the

habendum clause

The physical characteristic of real estate that means that every parcel of land is different is called

heterogeneity

A smaller home is surrounded by larger, more expensive homes. The value of the smaller home will

increase because of the larger, more expensive properties

When a buyer is required to purchase a mortgagee's title policy, the title insurance policy will

indemnify the lender against some, but not all, of the possible defects in the title

All of the following actions would create a cloud on the title EXCEPT

mortgage release

Littoral water rights are found in the deed of a property whose boundary lines are on a

navigable lake

A defect or cloud on the title to property may be perfected by

obtaining quitclaim deeds from all other interested parties

Assemblage is the process of merging two or more parcels of real estate into one parcel. The value that is created by assemblage is called

plottage

Fructus naturales is classified as

real property

The right to possess, control, enjoy, exclude, and dispose of real property is only found in the definition of

real property

An area of land that is 1-by-1 mile is a

section and contains 640 acres

Normally, a deed is considered valid even if

signed by an authorized attorney-in-fact rather than the seller

A couple contracted with a builder to construct their retirement home and paid cash for the property. At closing, they had their attorney represent them and they purchased an owner's title policy. Three months later, it was determined that the builder had not paid the subcontractors. Before the title company will make a payment to settle the claim, the owners will need to

subrogate their rights to the title company

A buyer's offer was accepted. To determine the value, the appraiser will MOST likely be hired by the

third-party clearing house

Personal property attached to a rented space in order to conduct a business is called a

trade fixture

For a deed to be recorded, it must be acknowledged. The primary purpose of acknowledgment is to

verify that the deed was signed without duress

An owner's title insurance policy normally covers all of the following EXCEPT

zoning changes