Transfer of Title - Chapter 2

The purpose of a recording act is to: Select one: A. Ensure title is marketable B. Raise revenue C. Create a local public record D. Protect property owners

Create a local public record

For closed real estate transactions, a report must be filed with the IRS on form 1099-S. Required information includes the seller's name, social security number, and: Select one: A. The buyer's name and social security number B. The selling price of the property C. The name of a mortgage lender D. A description of the property

The selling price of the property

A deed delivered in escrow is given to: Select one: A. A neutral third party B. The mortgagee C. The buyer's attorney D. The seller's attorney

A neutral third party

Escrow may be used in which of the following situations? Select one: A. When property is purchased and secured by a deed of trust B. In an exchange of property C. With a contract for sale D. All of the above

A. When property is purchased and secured by a deed of trust B. In an exchange of property C. With a contract for sale

Tax assessment of real property according to value is known as: Select one: A. Appraisal B. Ad valorem C. Replacement cost D. Accretion

Ad valorem

A quitclaim deed may be used to: a. transfer ownership of a fee simple estate b. transfer interest in a life estate c. terminate an easement d. any of the above

a. transfer ownership of a fee simple estate b. transfer interest in a life estate c. terminate an easement

A condensed history of the documents affecting real property is known as: a. the chain of title b. an abstract of title c. an abstract of judgments d. an affidavit of title

an abstract of title

Which statement is NOT true about title insurance? a. the policy will include a list of exclusions b. it serves many of the same functions as homeowners' insurance c. it will insure the owner against losses arising from title defects d. it will generally include exclusions for unrecorded easements

it serves many of the same functions as homeowners' insurance

A court action to remove a cloud from the title is called an action or suit: a. for specific performance b. for title insurance c. to quiet title d. of legal injunction

to quiet title