(5) Real Estate Title Transfer - Quizzes/Exams

True

(T/F) A formal declaration before a notary is known as an acknowledgment.

True

(T/F) A general warranty deed absolutely guarantees good title regardless of flaws of title, unrecorded claims, undisclosed encumbrances, or fraud.

True

(T/F) A quitclaim deed is sometimes used to clear title defects.

True

(T/F) An Attorney's Opinion is based on the Abstract of Title.

True

(T/F) An administrator is someone named by the court to administer an intestate succession.

True

(T/F) Information about a property that is hand delivered to an interested party would be considered as giving actual notice.

True

(T/F) The Habendum Clause specifies the type of estate being transferred.

True

(T/F) The method by which improvements or personal property become real property is through attachment.

True

(T/F) The right of disposition gives an owner the right to sell, will, lease, or give away his property rights.

A Special Warranty Deed (The bargain and sale deed guarantees more than the quitclaim, but not as much as a warranty deed. It conveys title without explicit guarantees, but does imply that title is good. There is an assurance that the grantor does in fact, possess the rights which he is conveying. The Bargain and Sale Deed with Covenant is a special type of bargain and sale deed which includes a covenant assuring the grantee that the grantor has done nothing to encumber the property during the time he has owned it. This covenant, in effect, turns the deed into a special warranty deed.)

A Bargain and Sale Deed with Covenant is equivalent to:

Abstract of Title (The attorney writes his opinion after reviewing the abstract. He then issues a certificate of title. The chain of title is a continuous linking of owners stretching back to the original land grant.)

A brief summary of all recorded instruments which have affected the title to a property

Grantor

A deed must be signed by the:

Quitclaim Deed (The bargain and sale deed is only slightly better than a quitclaim deed. It does not have any explicit guarantees. The special warranty deed guarantees title only for the time period that the seller owned the property. The partition deed is used in a partition suit.)

A deed which makes no promises of ownership at all

Public Dedication (The voluntary conveyance of title as a gift from a private owner to the government is known as PUBLIC DEDICATION. A subdivider, for example, may publicly dedicate a certain area of a subdivision as land to be used for streets and parks.)

A developer may transfer ownership of the streets and parks in a subdivision through a:

Acknowledgment

A formal declaration before an authorized person, usually a public notary, made by the person signing the deed, that he is the grantor and that he has signed the deed of his own free will

Statutory Will

A formally prepared will, usually by an attorney, witnessed and signed

Intestate

A person dying without a will is said to have died

Testate

A person who dies leaving a will

Legatee

A person who inherits property in a will

Administrator (When a testator dies, his will is admitted to probate. This is a court proceeding designed to establish the validity and authenticity of the will, and allow the legatees, creditors, and other interested parties to claim their shares of the estate. An executor, or executrix, if female, is usually appointed in the will to carry out the instructions of the will. If not, the court will appoint an administrator for that purpose.)

A person who is appointed by the court to carry out the terms of a will

Acknowledgment (Acknowledgement is a statement that the person executing a document has done so of his own free will, and that he is in fact the person whose signature appears on the document.)

A statement saying that a person signing the document has done so of his own free will and that he is the person whose signature appears on the document is a/an

Abstract of Title

A summary report of what was found in the public records when the title search is done, beginning with the original owner and giving a chronological list of all recorded instruments including liens and encumbrances is a/an:

Lis Pendens

A term which means pending litigation

Paying Unpaid Taxes Filing a Suit to Quiet Title Using a Quitclaim Deed

A title defect, or cloud on a title may be removed in several ways:

B. forged documents

A title insurance policy generally covers all of the following EXCEPT: A. mistakes in the public records B. forged documents C. incompetent sellers D. unrecorded deeds

Mortgagor's (or Borrower's) Policy

A title insurance policy that protects the borrower is a _________. It is good for the full amount of coverage as stated on the policy and for as long as the owner or his heirs have an interest in the property.

Mortgagee's (or Lender's) Policy

A title insurance policy that protects the lender who takes the property as collateral for a loan. (It protects only the amounts owed on the loan, and the insured amount is reduced as the loan is paid off.)

Bargain & Sale Deed

A type of deed that guarantees more than the quitclaim but less than the special warranty deed

General Warranty Deed

A type of deed which grants title free of defects past and present

Nuncupative Will (Only personal property may be transferred by this type of will. It must be witnessed, and the witness must commit the testator's words to writing. The testator must be legally competent for nuncupative and holographic wills to be binding.)

A will made orally by a testator who is near death

Holographic Will (This type of will is not recognized in some states. Louisiana recognizes this type of will but call it an olographic will.)

A will that is written by the testator and in his own handwriting, dated and signed by him, but not witnessed by any other person

Will

A written instrument by which a person arranges for the conveyance of his property to take effect after his death

Deed (In Louisiana the instrument used to transfer property is called a conveyance.)

A written instrument by which title to real property is formally transferred from one party to another

Adverse Possession (Adverse Possession is the acquisition of title to property by possession of the property for a statutory number of years. In order to claim title, the occupancy and possession of the property must be continuous, open, hostile, exclusive and notorious. The adverse possessor must occupy the property he claims continuously, for a period of from five to thirty years, as determined by state law.)

Acquiring property through possession is known as:

a. acquisitive prescription.

All of the following are examples of transfer by accession EXCEPT: a. acquisitive prescription. b. accretion. c. reliction. d. attachment.

d. Eminent domain (Eminent Domain is the right to acquire private property, by government, for public use. Lands thus acquired must be used for specific public purposes and the owners affected must be justly compensated for their loss of title. The government's right of eminent domain is expressed through court action known as condemnation.)

All of the following are types of voluntary transfer EXCEPT: a. Public grant b. Public dedication c. Private grant d. Eminent domain

Codicil

An addition to an existing will by which changes in the provisions of the will are made

Encroachment (Encroachments are unauthorized intrusion of a building or other improvement onto the land of another person. The owner of the land that is being encroached upon has the right to force the owner of the encroachment to remove it. Failure to do so may injure his title. A survey identifies an encroachment.)

An unauthorized intrusion of a building or other improvement onto the land of another person

Promise

Another word for "covenant"

d. Any of the above. (A contract is not valid unless each party has pledged to exchange something of value with the other party. The consideration exchanged may be tangible or intangible and may include granting the legal right to do something, or making a promise not to do something. There are two types of consideration: a. valuable: Valuable consideration refers to items of material value, such as real property, money, etc. b. good: Good consideration refers to things of abstract value such as the promise for love, affection, friendship or loyalty.)

Consideration is required in a valid deed. Consideration can be in the form of: a. Money b. Love c. Affection d. Any of the above.

Alluvion

Deposits of soil that occur from the natural processes of nature and result in the increase in the size of a property

No, but it should be recorded to give notice to third parties (Unrecorded deeds are valid between the parties, but must be recorded in order to give notice to third parties.)

Does a deed have to be recorded to be valid?

Constructive (All documents that create, transfer or encumber a property must be recorded in the public records, to protect the interest of the grantee and insure future marketability of title. Public recording involves the registration or enrollment of an instrument - deed, mortgage, etc. - with some local government official, usually the county clerk or county recorder. This is known as constructive notice.)

Filing documents in the public records at the court house is considered to be what type of notice?

Actual Notice

First hand information regarding a property

Verification & Acknowledgment

Have to do with establishing the validity of a document

Five

How many covenants does a general warranty deed contain?

The next person who acquired the property

If a title is clouded by defects such as unsatisfied liens, a lis pendens (pending litigation), unreleased judgments, unpaid taxes or other such encumbrances or defects which prevent the owner from enjoying his full rights of ownership, such defects will be passed along to ___________ unless the title is cleared.

Tacking (If two or more adverse claimants occupy the same property in succession, the years of their occupancy may be combined for the benefit of the most recent claimant. This adding together of years to meet the statutory requirements of possession is known as tacking.)

If two or more adverse claimants occupy the same property in succession, the years of their occupancy may be combined for the benefit of the most recent claimant. This adding together of years to meet the statutory requirements of possession is known as:

Conveyance

In Louisiana, the instrument used to transfer property

Acquisitive Prescription (If a claimant occupies a parcel of property in good faith, it may become his in ten years; if in bad faith, it takes thirty years.)

In Louisiana, the term for adverse possession:

a. surviving spouse. (Laws of succession vary from state to state, but typically, they will satisfy the interest of heirs in the following order: surviving spouses and children, followed by the deceased's grandchildren, parents, siblings, and other more distant relations. In states recognizing community property as a form of husband and wife co-ownership, the entire estate is transferred to the surviving spouse. In most other states, the deceased's estate is usually divided among the surviving spouse and children.)

In states recognizing community property as a form of husband and wife co-ownership, upon the death of a spouse the entire estate is transferred to the: a. surviving spouse. b. children. c. heirs named in the will. d. spouse and children equally.

Condemnation

In the Common Law states the act of taking private property for public use is called:

Special Warranty Deed (In a special warranty deed the grantor claims no responsibility for claims of ownership or encumbrances from the period before he owned the property.)

In which type of deed does the grantor guarantee the title only during the time that he actually owned the property?

Lenders

Mortgagee title policies protect against _________ loss?

c. The son owns the house. (In order for the deed to be valid it must be delivered to the church and accepted.)

Mr. Jones died testate leaving everything to his son. While going through his father's desk the son finds a deed signed and dated by his father leaving the house to his church. Which of the following is true? a. The church owns the house. b. No one owns the house because it wasn't mentioned in the will. c. The son owns the house. d. Ownership of the house must be decided under intestate laws.

Remove a cloud on the title (The quitclaim deed makes no promises at all. The grantor simply relinquishes any claim to title which he may or may not have had. The quitclaim deed conveys whatever title the grantor possesses, whether it is a clear, unimpaired title, a defective title claim or no title interest at all. Quitclaim deeds are used frequently for removing clouds on title.)

Quitclaim deeds are often used to:

Constructive Notice

Recording a transfer of property documents in the public records of the court house

Involuntary Transfer & Involuntary Alienation

Terms for transfer of title without permission of the owner:

d. All of the above. (The word disposition means to dispose of. Disposition can be by sale, will, or grant.)

The "right of disposition" means the right to: a. Sell your property. b. Will your property. c. Donate your property. d. All of the above.

Accession (Although this is a type of involuntary transfer, it is treated separately because no deeds or other legal instruments are involved.)

The acquisition of real property through natural or artificial causes, or acts of God is is a type of involuntary transfer called:

Adverse Possession

The acquisition of title to property by possession of the property for a statutory number of years

Probate (When a testator dies, his will is admitted to probate. This is a court proceeding designed to establish the validity and authenticity of the will, and allow the legatees, creditors, and other interested parties to claim their shares of the estate.)

The court proceeding designed to establish the validity and authenticity of the will, and allow the legatees, creditors, and other interested parties to claim their shares of the estate

Condemnation (Eminent Domain - the right to acquire private property, by government, for public use. Lands thus acquired must be used for specific public purposes and the owners affected must be justly compensated for their loss of title. The government's right of eminent domain is expressed through court action known as condemnation.)

The government's right of eminent domain is expressed through court action

Reliction

The gradual exposure of land behind a receding waterline. When the water level of a lake, river, or stream drops, the land exposed becomes a part of the adjoining property.

Alluvion

The gradual increase in the size of a property as the result of some natural process is called accretion. The land deposited by this process is called:

Quiet Enjoyment Seizen Warranty Forever Further Assurance Against Encumbrances

The guarantees in a general warranty deed are of:

Covenants

The guarantees or promises made in a deed stating what is being guaranteed.

Curtesy

The husband's interest in his wife's estate at her death

Erosion

The loss of property by wearing away of soil by wind, water, etc.

Vendor Vendee

The party conveying title is known as the grantor (* ________ in Louisiana). The party receiving title is known as the grantee (* ________ in Louisiana)..

Grantor

The party conveying title is known as the:

Grantee

The person receiving title is known as the:

Condemnation

The process of state, local, or federal government in taking private property for public use

Eminent Domain

The right of the federal, state, or local government to take private property for public use

5 to 30 years (In order to claim title, the occupancy and possession of the property must be continuous, open, hostile, exclusive and notorious. The adverse possessor must occupy the property he claims continuously, for a period of from five to thirty years, as determined by state law.)

The time period for acquiring property through adverse possession can range from:

B. are in the public records

Title insurance generally covers defects that: A. are known to the buyer B. are in the public records C. are listed in the deed D. none of the above

d. All of the above.

Title problems could include which of the following? a. encroachments. b. technical errors. c. hidden defects in public records. d. All of the above.

Encroachments Technical Errors Hidden Defects in Public Records Judgments or Liens Unrecorded Documents

Title problems could include:

c. Both A and B

Title to real property may be transferred without the owner's consent. This type of transfer is known as: a. Involuntary transfer b. Involuntary alienation c. Both A and B d. Quitclaim

D. signature of grantee

To be valid, a deed must have all the following EXCEPT: A. names of grantor and grantee B. consideration C. description of property being conveyed D. signature of grantee

d. Any of the above. (Actual means firsthand information regarding a property which is known by a single interested party, or which should be known by this party. Hand delivering a deed or employing a professional surveyor to determine the actual dimensions of the land he purchased would constitute actual notice. A second meaning of actual notice involves the notice a person gives through his physical occupation of a property, or by his public announcement of his interest in a property.)

Types of actual notice include: a. Hiring a surveyor to establish property lines. b. Handing delivering a copy of a deed. c. Physical occupation of a property. d. Any of the above.

Certificate of Title (After the abstract is done, it is then sent to an attorney for legal examination of the title evidence. The attorney gives an opinion as to who the owner is and as to anyone else with a legitimate interest in the property. The attorney then gives a certificate of title, which is his opinion, written, signed, and attached to the abstract.)

Upon completion of an abstract of title, the attorney gives an opinion as to who the owner is and as to anyone else with a legitimate interest in the property. The attorney then gives a ____________ stating his opinion which is signed and attached to the abstract.

Only things that happened in the past (Title insurance protects only against the past, not the future. Title policies are taken out with a one time, lump sum payment, and are not transferable.)

What does title insurance protect against?

The grantor only

What signatures are required on a deed or conveyance?

Sheriff's Deed (A Sheriff's Deed conveys property sold by court order to satisfy a debt.)

What type of deed conveys property sold by court order to satisfy a debt?

State Laws (When a person dies without leaving a valid will, he dies intestate. In this case, state law determines how his property will be divided. An administrator is named by the court to administer an intestate succession.)

When a person dies without a will, what determines how his property will be divided?

Public Dedication (An example of this would be when a subdivider publicly dedicates a certain area of a subdivision as land to used for streets or parks.)

When a private party gives land to the government it is known as a:

Probate

When a testator dies his will must go through a court proceeding called:

Subrogation (A title insurance company determines whether the title is insurable based on a review of the public records. Once the title company makes a payment to settle a claim, the company generally acquires the right to any remedy or damages available to the insured. This right is called subrogation.)

When a title company has made a payment to settle a claim covered by a policy, the title company then has a right to any remedy or damages available to the insured. This is called:

Escheat (Hint: The phrase to remember this terms is "every state cheats".)

When an owner dies without leaving a will and without heirs, his property reverts to the state. The term for this is:

Attachment (Real property interests may be gained, lost or transferred by artificial means. Improvements on real property, for example, fixtures, may become permanent property additions. Even improvements made in error, a garage built on the wrong lot, for example, can, in some cases, become part of the property to which they are attached, if they were made without the owner's consent.)

When personal property becomes permanently attached to real property it becomes a part of the real property. This is called:

Public Grant

When the government gives land to a private party it is called a:

Granting Clause (Granting Clause expresses the grantor's intention to convey, grant, give, sell or release his real property interest to the grantee, using specific WORDS OF CONVEYANCE.)

Which clause in a deed contains the actual words of conveyance?

D. All of the above

Which of the following are types of Involuntary Transfer? A. Eminent Domain grantor. B. Escheat C. Adverse Possession D. All of the above

D. all of the above

Which of the following are types of specialty deeds? A. administrator's deed B. executor's deed C. sheriff's deed D. all of the above

D. eminent domain

Which of the following is NOT a type of voluntary transfer? A. public grant B. private grant C. public dedication D. eminent domain

d. All of the above. (A title defect, or cloud on a title may be removed in several ways. One way is by paying unpaid taxes. Another way is by filing a Suit to Quiet Title. A third method is use of the Quitclaim Deed, whereby a third party releases any claim to the title.)

Which of the following is/are ways of clearing title defects? a. paying unpaid taxes. b. filing a suit to quiet title. c. using a quitclaim deed. d. All of the above.

Trustee's Deed (The Deed in Trust is used for conveying title to a trustee as security for a loan. The Trustee's Deed conveys property out of trust.)

Which type of deed conveys property out of a trust?

Quitclaim Deed

Which type of deed provides the LEAST protection for the grantee?

Accretion

the gradual, physical increase in the size of a property as the result of some natural process, usually the action of water