CRE: Law and Practice 6 Exam

A House sold at $138,240 which was at a loss of 4% . What was the original cost of the house?

144000

In order to acquire title by adverse possession in Colorado the claim would requires 18 years of possession, unless the claimant has color of title and pays taxes on the property, then period of possession required is:

7 years

Which of the following is not considered evidence of marketable title?

A certificate of title by a broker

Proper recordation of documents affecting title and interest to real estate legally provides:

Constructive notice

The Torrens System is most commonly used in which part of Colorado?

Eastern

"Marketable title" means that the ownership and possession of property is readily transferable since it is free from valid claims by outside parties. Which of the following would NOT be acceptable as evidence of marketable title?

General warranty deed

Which title insurance guarantees against every threat:

NO TITLE INSURANCE POLICY INSURES AGAINST EVERY THREAT!

A defect or a cloud of title of a property is best cured by:

Quitclaim deed

Which of the following would be used to clear a defect from a recorded deed?

Suit to quiet title

Which of the following is accepted as evidence of marketable title?

Title insurance policy

Essential elements for a deed include:

Words of conveyance

A deed that contains no warranties, but in which the grantor does give up his own rights or claims, is known as:

a quitclaim deed

When Anthony purchased his home, the title insurance company's report included all of the following EXCEPT:

a record of all previous owners of the property

In the purchase of real estate, the buyer is held responsible for facts and information obtainable through:

constructive notice

When the grantor (the owner) offers the grantee (the buyer) a General Warranty Deed transfering ownership; the grantor warrants that the property is free from liens and encumbrances through which Covenent?

covenant against encumbrances

RESPA applies primarily to:

first loans for residential properties

Instruments affecting real estate are recorded with the County Clerks office, in the county where the property is located, to:

give constructive notice to the world of the interest in a particular parcel of property the instrument purports to create

A standard title insurance policy indicates:

if there are any judgment liens on the property, if the property is free and clear of all encumbrances, what the current condition of the title is, subject to stated exceptions

A purchaser of real estate is generally entitled to receive from a seller the kind of title the courts describe as:

marketable

An abstract of title usually is accompanied by a(n):

opinion

It is important for the Title Company to know what type of loan the purchaser is obtaining for the purposes of:

preparing the promissory note and deed of trust

Deeds recorded with the county recorder:

provides constructive notice of ownership

A title insurance policy differs from property and liability insurance policies in a variety of ways including:

the statute of limitations for a cause of action commences at the time loss or damage occurs, and not the date the policy is issued, the premium for a title insurance policy is payable only once, and the policy remains in effect for as long as the insured or his heirs own the property, title policies cover claims arising from defects existing in the past, rather than those that may occur in the future

Which of the following situations would cause a deed to create tenancy in common instead of joint tenancy with right of survivorship?

the three parties agree to divide the property 40 per cent, 30 per cent, 30 per cent between them

A contract or document that protects (subject to specific exceptions) against loss due to defects of public record and against hidden risks such as forgeries is called:

title insurance

The best assurance of good title, that a real estate purchaser can obtain, is:

title insurance

Under the Torrens system:

title passes when the registrar issues a new Torrens certificate

RESPA requires the use of a:

uniform settlement statement in every transaction

A written document that provides for the transfer of title of property owned by the deceased is a(n):

will