Forms of Ownership, Transfer, and Recording of Title Exam

Deed

A ______ is a method of conveying real property from one party to another.

Ownership, possession, and control for someone's lifetime

A life estate can best be described as ______.

File a suit to quiet title.

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

Accreation

Alluvion describes new deposits of land that are the result of what natural process?

Periodic estate.

An example of this type of leasehold estate is a month-to-month lease.

Her title insurance

Anita is a new buyer. Luckily, ______ will help her before the sale and can reimburse her after the sale if a title issue arises.

Personal Property

Beneficiary interest in land that's part of a land trust is considered ______.

Estate for years

Cedric is opening a model railroad shop, but he knows that he'll only run the store until his partner finishes law school. He signed a three-year lease, after which the lease will terminate. What kind of leasehold is this?

With the transfer of deed from the seller to the buyer

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

Connor, as grantor

Connor was the seller and Duke was the buyer when Connor sold his property. Who conveyed the title?

Involuntary

Conveyance of property by escheat is an example of _______ alienation.

Trustor

Darren set up a land trust so that his children could benefit from his real estate investments after he dies. He asked his financial advisor Tom to manage the trust. Darren is the ______.

Enjoyment

Derrick was thrilled to find out that the land he purchased includes several small caves. He's been spelunking for about three years and looks forward to exploring the caves on weekends. Which real property right allows him to do so?

Exclusion

Elvin owns 150 acres of prime hunting land. Every year, he gets requests from private groups that would like to use his land for a day or two during hunting season. He sometimes grants these requests, but this year, he's decided to only use it himself with his friends. Which right in the bundle of rights says that he can say no to these requests?

Tenancy in Common

Eva, Stella, and Lynn owned a vacation home two blocks from the beach. Sadly, Stella passed away over the winter, so when summer arrived, Eva and Lynn shared the home with Stella's nephew Drew, to whom Stella willed her share of the property. What type of ownership is this?

Prior appropriation

Hal and Sara own a 212-acre farm. Their property is landlocked, but they have permitted water rights to use the stream located six miles away for irrigation purposes. What kind of water rights do they hold?

The covenant of the right to convey

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?

vouluntary

Hope's mortgage created a lien against the property she purchased with the mortgage. What kind of lien is this?

The landlord doesn't charge a percentage of sales until the tenant's sales exceed a break-even point.

How does the term "break-even point" relate to percentage leases?

Divide the monthly base rent by the percentage the landlord established.

How is the break-even point calculated for a percentage lease?

Descent

If Carol and Doug Shields died intestate, their estate would be conveyed to their heirs through which method of alienation?

It passes to his wife.

Kirby died. If his wife survived, and he lived in a community property state, what happens to the property he owned jointly with his wife?

A bargain and sale deed may come with or without covenants of warranty.

Lynette purchased a property under a bargain and sale deed. Which statement best describes the covenants Lynette's deed provides?

A periodic Estate

Malcolm loves his apartment, even though he's rarely there. His job in international development has him on the road for months at a time. He doesn't have to worry about missing out on his lease renewal, though, because he has ______.

Marsha's second mortgage on the property, which she plans to get next January

Marsha's title insurance policy was issued on closing day, which was June 18. The policy lists the standard exclusions as well as requirements for the company to issue the policy, such as paying off existing recorded liens. Which one of these will NOT be addressed in the schedule of exceptions?

Living trust

Martin placed all of his real estate investments in a trust, and the proceeds are distributed through the trust to his son Nathan. Martin still manages the properties indirectly, and Nathan currently benefits, as he's past the required beneficiary age of 18. What type of trust is this?

Beneficiary

Martin placed all of his real estate investments in a trust, and the proceeds will be distributed through the trust to his son Nathan. In this situation, Nathan is the ______.

Control

Philip owns land in a state where growing marijuana is illegal. He wants to set up a small marijuana growing operation and export to states where marijuana has been legalized. He asks his attorney about the possibility. "No," his attorney explains. "It's not possible. Although you own the property outright, the right of ______ only allows you to manage the property in ways that are legal in this jurisdiction.

enjoyment

Property owner Craig likes to sunbathe in the nude in his nice, private backyard. What part of the bundle of rights allows him to do this legally?

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

Related to title insurance, what is "subrogation"?

An absolute net lease has no legal defenses if Simon fails to pay.

Simon is looking for a facility for a large grocery distribution operation. He found two options, one of which is offering him a triple net lease, and the other an absolute net lease. Why is his attorney arguing against the latter?

His heirs, as described in his will or the state law of descent, will get the property.

Simon recently passed away. He owned title to his property in severalty, as a fee simple absolute estate. What will happen to his property?

Nets

Taxes, insurance, and maintenance are property expenses that are sometimes covered in a tenant's lease payment. These are collectively referred to as the _______.

Act of Conveyance

The element of a deed that signifies the grantor's intention to transfer title to the grantee is the ______.

eminent domain

Through which method of involuntary alienation may the government take private land for public use?

percentage

Tyra owns a nail salon that's located in a strip mall. Her rent every month includes $1,800 base rent and 10% of her gross sales. What kind of lease does Tyra have?

A defect on a title that can be monetary or physical

What is an encumbrance?

There could be hidden title issues.

What special concern do foreclosed properties often present?

The covenant of seisin

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

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

What's the purpose of title insurance?

The strip mall

When Edmund died, he left several properties to his heirs. He owned a grocery store and a campground outright, and a strip mall that was held in a living trust. Which of the properties, if any, did NOT have to go through the probate process after his death?

Part of the process

When you close on a condo, a title search, deed transfer, and recordation are ______.

The covenant of further assurances

Which covenant requires the grantor to execute any necessary legal documents (within his power) necessary to fix title defects discovered after closing?

Preliminary report

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?

The tenant stays after the right to possess has terminated.

Which of the following describes an estate at sufferance?

Deed

Which of the following is an instrument of conveyance?

An easement runs across the property, permitting Jane's neighbors to access the neighborhood boat dock.

Which of these situations might be addressed by a subject to clause or limitations in the deed Jane is using to convey property to Moira?

Rights of redemption window with REOs may have expired.

Which of these statements about the homeowner's right of redemption is true?

It provides an attorney's opinion of the title.

Which one of the following is a characteristic of an abstract of title?

Clouds on title

Which one of these is a potential title issue with a foreclosure?

The deed includes an act of conveyance.

Which one of these statements accurately represents one of the required elements in a deed?

The grantor is not mentally competent

Which one of these would void a deed that's intended to convey property?

Joint Tenancy

Which ownership type is defined by four unities: time, title, interest, and possession?

Few states require an abstract of title when conveying property.

Which statement accurately describes an abstract of title?

Fee simple absolute

Which type of estate gives the owner condition-free interest in a property? This type of estate conveys the highest possible interest.

Title representatives and attorneys who perform title searches look for documents that are publicly recorded.

Why is it important to publicly record a deed?

It's owned as an estate in severalty.

Widget Corporation just bought land on which it plans to build a new manufacturing facility. How is the land owned?

Title Insurance

Your buyer is worried that after she closes on her property, she'll find out someone else has a claim to its ownership. What can reassure her?