Section 4 - Transfer and Recording of Title

Juan purchased a property for $420,000 and financed $336,000 of it. The assessed value of the property is $387,000. The property appraisal came in at $432,000. Which of these amounts is used in calculating the property tax?

$387,000

Related to title insurance, what is "subrogation"?

A covered party grants permission to the title company to pursue the party who caused a claim or loss.

Land given to the government without compensation is best known as what?

A dedication by deed

Which of the following is a way in which property taxes could impact your clients?

A sale in the area may prompt a reassessment, impacting new buyers.

What is a transfer tax?

A tax that's applied to the transfer of property from one person to another

Which of these is excluded on a title insurance policy on Martha's property because of the schedule of exceptions?

A verbal lease agreement Martha has with her neighbor who leases Martha's garage

Points are usually acquired at which stage of the property ownership life cycle?

Acquisition

Li Meng purchased a property that had been owned by the same man for more than 40 years. The title search was clean. In the spring, she started seeing traffic on the path to her dock and discovered that the previous owner had always allowed the locals to use his path to get to the lake. What covenant may have been breached?

Against encumbrances

What is a title commitment?

An agreement by a title insurer to issue the final title insurance policy on the property

What information does Schedule A of a title commitment provide?

Basic facts related to the transaction and property, including a legal description

Why is a foreclosure more likely to have title issues than a non-foreclosure?

Borrowers who can't afford loan payments may have taken out other loans against the property.

You're working with buyers who are interested in trying to get a bargain in the form of a foreclosure. What should you tell them?

Buyers should take special care to ensure that any title issues are addressed.

What should a real estate professional do regarding property taxes?

Check the title report for property tax liens.

If a property has a legal claim against it, what is the property said to have?

Cloud on title

What type of notice results from publicly recording a title transfer?

Constructive notice

Which of the following is true about ownership or title to a property?

Constructive notice to the public of real property ownership occurs when the deed is recorded.

Eileen is a real estate professional who represents Shamalaya in her home purchase. What's Eileen's responsibility to Shamalaya regarding property taxes?

Disclose them to Shamalaya.

What steps can the real estate professional take to assist buyers with property taxes?

Disclose to buyers that a sale may prompt a reassessment.

After purchasing a property, what can Jeremiah do to clear a possible future claim on the property's title?

File a suit to quiet title.

Shana received a devise from her mother. What might this be?

Her mother's farm

What's the purpose of title insurance?

It protects the buyer against loss resulting from previously unreported title defects.

How does title insurance affect the lender?

It protects the lender from loss due to defective titles.

What's a typical reason that a seller might opt for a short sale?

Job loss or other financial problems

Voluntary alienation includes which of the following?

Kali intentionally transfers her property to Sandy.

Why might a buyer get a great deal on a real estate owned property?

Lenders and their shareholders don't like to keep properties on their books longer than necessary.

While any distressed property can have title transfer issues, why is an REO less likely to be subject to unpaid tax liens?

Lenders want REO properties to sell quickly, so they're likely to have resolved unpaid tax lien issues.

A title officer will perform a title search to ______.

Make sure there are no clouds on the title

Margo's accountant tells her that she's eligible to deduct the property taxes she paid last year. Select the statement about this deduction that's true.

Margo is in the ownership stage of the property ownership lifecycle.

What takes precedence over a deceased person's wishes to grant his property at death, even if those wishes are specified in the decedent's will?

Operation of law

Which document is used to give a buyer an overview of the title history and information about what is or isn't covered in an insurance policy?

Preliminary report

What can buyers do to protect themselves from title issues when purchasing property?

Purchase title insurance.

What's the purpose of a quiet title suit?

Remove any claims against a property's title

Capital gains fall into which stage of the property ownership life cycle?

Reversion

Which covenant term means that the grantor has legal capacity to convey the title and has the title to convey?

Right to convey

What's one reason that buyers might need additional cash at closing for a short sale?

Short sales don't clear liens from the title, so buyers may have to pay debts at closing.

What title guarantees will Jody have when she buys a property at a foreclosure auction?

The covenant of seisin

Henrietta is 17 years old. She wants to sell the property given to her by her grandmother. Which covenant provided by the general warranty deed may prevent her from doing so?

The covenant of the right to convey

Farquhar bought a house at a foreclosure auction. A few weeks later, he was notified that he couldn't take possession of or title to the property. What likely happened?

The previous owners redeemed the property by paying all mortgage payments and fees.

Which option is true if a deed is not recorded after closing?

The property's legal ownership can be challenged.

Anika is short selling her home. This means ______.

The sale won't bring in enough to pay off her loan

You know that a title search will need to be performed before a title insurance policy will be issued and your buyer's loan can be funded, but who or what entity can your client expect to conduct the title search?

The title insurance company

Paula is bidding on a property that's being sold at a foreclosure auction. She's excited about the great deal she's getting on the property after she finds out she submitted the winning bid. What could cause Paula's great deal to turn into a nightmare?

The title to the property may have hidden issues that could cost her a lot of money to

In which of these situations would the property most likely be conveyed with a trustee's deed?

Tim's property will be sold at auction in a foreclosure action.

Avery is about to close on his first home. What will protect him from financial loss if his ownership later comes into question?

Title insurance

What type of insurance protects a lender's collateral interest in a property that's being financed?

Title insurance

Which of the following protects the owner against financial loss if the real estate title has defects?

Title insurance

A quitclaim deed does which of these?

Transfers without warranty any interest or title the grantor has when conveying it.

When does a transfer tax become payable?

Upon recording of the deed

Christina purchased a house from Thomas. When did she officially gain ownership of the property?

With the transfer of deed from the seller to the buyer

Your aunt bequeathed you her property in her will, but you never received it. Instead, the property went to pay her tax bill. Is this legal?

Yes, due to operation of law