Real Estate, Chapter 3, Section 2 (Transfer by Deed), Pop Quiz Questions 2.1

All of the following are requirements for a valid deed, EXCEPT: A. acknowledgment B. adequate legal description C. signature of grantor D. words of conveyance

A. Acknowledgment is not a requirement for a valid deed. Acknowledgment is necessary for the deed to be recorded, but a deed that is not recorded may still be valid.

The provision in a deed that describes the type of estate the grantee will hold, which is sometimes referred to as the "to have and to hold clause," is also called the: A. habendum clause B. alienation clause C. exclusions and reservations clause D. transfer clause

A. The habendum clause is also called the "to have and to hold clause." It defines or limits the interest being conveyed in the deed.

Deborah sells her property to Juan, but Juan fails to record the deed. Which of the following statements is true about unrecorded deeds? A. The conveyance is invalid B. The deed is still valid between Deborah and Juan C. The deed provides constructive notice that Juan is the owner D. The property with the unrecorded deed will escheat to the county where it is located when Juan dies

B. A deed that is unrecorded is still valid between the grantor and the grantee. Without recording, however, it does not provide constructive notice of the grantee's interest to the public.

Marty is selling his home to Phil, but doesn't want the deed to state the actual consideration paid for the house. Which of the following is true? A. The deed doesn't need to state the actual price, but the price listed must be within 10% of the sales price B. The deed can state the consideration as $10.00 C. The actual price may not appear in the deed under any circumstances D. The actual price of the house must appear in the deed

B. Although not required, a recital of consideration in a deed is helpful because it indicates that the transfer is a sale and not a gift. However, the recital of consideration usually names some small amount to accomplish this, rather than the actual sales price.

With respect to a deed and title: A. the deed transfers title from the grantee to the grantor B. the deed conveys title from the grantor to the grantee C. a deed must be recorded to be valid, but title does not have to be recorded to show ownership D. an attorney must prepare the title, but a deed is usually prepared by the owner

B. The seller in a transaction will be the grantor of the deed that transfers title to the property to the buyer (or grantee).

Of the following documents, which is the only one signed by the sellers alone? A. First right of refusal B. Warranty deed C. Listing agreement D. Purchase and sale agreement

B. To be valid, a deed must be signed by a competent grantor. It isn't necessary for it to be signed by the grantee. The other options are all contracts that require the signatures of the seller and the other party (the buyer or, in the case of a listing agreement, the brokerage).

A deed must be acknowledged before it's recorded to: A. guarantee good title to the grantee B. validate the identity of the grantee C. verify that the deed was not signed under duress D. clear a cloud on the title

C. A person acknowledges a document by formally declaring to an authorized official (usually a notary public) that he signed voluntarily. A grantor acknowledges a deed in the presence of a notary public, who then attests that the signature is voluntary and genuine.

The document that would enable a listing licensee to sign a sales contract in the owner's absence would be known as a: A. covenant of right to convey B. habendum clause C. power of attorney D. power of sale

C. A power of attorney is a document that appoints a person to act on another person's behalf. The person who receives that authority is an attorney in fact.

A married couple decides to move to Italy and the wife quickly secures a job in the new country, leaving the husband to sell their home in the United States before he joins her. To transfer title to the property to a buyer, the husband should: A. sign his wife's name to the documents, after showing their marriage certificate to the escrow agent B. sign on behalf of his wife, since they are married anyway C. obtain a power of attorney from his wife so that he can sell the property D. sign by himself; her signature isn't necessary if she's out of the country

C. A power of attorney specifically authorizes a person to act on another's behalf. The wife's signature is required to transfer title to the buyer; if she cannot be present to sign the documents herself, then the husband should obtain a power of attorney from her, authorizing him to sign the documents on her behalf.

A deed is valid only if: A. the grantee signs it B. it is delivered into the hands of the grantor C. the grantor is legally competent D. the document is recorded through escrow

C. A valid deed must have a competent grantor. The grantee does not sign the deed. Recording the document is certainly advisable, but an unrecorded deed is not invalid.

A deed that is not signed by the seller is still considered valid as long as it: A. is executed by a competent relative of the seller B. is delivered to the buyer C. contains a covenant of seisin D. is signed by an authorized attorney in fact

D. The document used to assign legal rights to another person—for example, authorizing someone else to sign a contract and/or deed on one's behalf—is a power of attorney. The person who is appointed to act is known as an attorney in fact.