Chapter 9 - Review questions

Complete list of the required components of a valid lease?

The names and signatures of the lessor and lessee Consideration (money or something of value given by the lessee to the lessor) Term of the tenancy Legal description of the property

A homeowner has run into some financial difficulty and has not been able to pay property taxes or income taxes. If liens resulted in a foreclosure sale, which of the following is the correct order for payment of the liens? (a) The city would be paid first. The IRS would be paid after the city, provided the sale produced enough funds. (b) All liens will be added together and each lienholder would receive their prorated share. (c) The IRS would be paid first. The county would be paid next. (d) The order of these two liens would depend solely upon the order in which they were filed.

(a) The city would be paid first. The IRS would be paid after the city, provided the sale produced enough funds.

What is a lease-option?

A lease in which the tenant has the option to purchase the property within a certain period of time.

What is a warrant in a deed?

A promise made by the grantor

What is an abstract?

Compilation of documents with a cover page, or caption, containing documents that may affect the title in addition to the chain of title.

What type of notice is considered to be the best proof of ownership? actual or constructive notice?

Constructive

The purpose of recording a deed in the public records is to give notice to all parties. which term refers to this type of notice?

Constructive notice

What does a Habendum Clause contain?

Description of the portion of the bundle of legal rights that are being conveyed.

Which type of easement involves two or more parcel of property and runs with the land?

Easement appurtenant

A new expressway is being built through a neighborhood. if the residents do not want to sell their land, what right would the government exercise to take the land?

Eminent Domain

What may a real estate licensee do with respect to model residential lease forms approved for use by the Florida Supreme Court?

Fill in the blanks

How are liens enforced?

Foreclosure

Which deed would be the best deed in regard to promises and guarantees from the grantee's point of view?

General Warranty

Which type of deed is most commonly used?

General Warranty

Which type of deed offers the best protection to the grantee?

General Warranty deed

A lease in which the tenant pays a fixed rent amount and the landlord pays all the expenses related to the property, is what type of lease?

Gross Lease

Which clause in the deed states the interest that is being conveyed?

Habendum

Which clause in a deed specifies the type of estate that is being conveyed from the grantor to the grantee?

Habendum clause

What is the term used to describe an individual who dies without leaving a will?

Intestate

Richard lost a lawsuit which had nothing to do with debts or obligations related to his property. The court imposed a lien on any of Richard's Properties to enable the party who filed suit to collect damages. What type of lien was imposed?

Judgement Lien

William rents a 2-bedroom home with a lease agreement that allows him to purchase the property within 5 years and apply a portion of his paid rent to the purchase price. What type of lease does William have?

Lease-Option

Michelle voluntarily placed a lien against her property as a pledge of security for repayment of a debt. What type of lien did Maria give to the creditor?

Mortgage Lien

Josie leases commercial space for her retail business. Under her lease agreement she pays a fixed rent plus a share of the property's expenses. What type of lease does Josie have?

Net Lease

What type of lease, that is often a commercial lease, requires the tenant to pay the rent, plus also separately pay taxes, insurance, and maintenance?

Net lease

What does the term title refers to in Real Estate?

Ownership

Mary and Louise open a beauty shop in a regional mall. The terms of their lease require that a portion of their business income, in addition to the periodic rent, be paid to the landlord. What type of lease do they have?

Percentage

What is the term used to describe a person who is appointed by a court to act for a decedent?

Personal Representative

Zoning is an exercise of which governmental power?

Police Power

Zoning is an example of which government limitation over private property rights?

Police power

Which type of clause is legally required to be included in a deed?

Premises Clause (or granting Clause)

Which lien attaches automatically to real property on Jan 1st of each year?

Real estate property tax lien

Sales associate Sally discovers that a property that she has listed has title defects which may render the title unmarketable or unmerchantable. What should sally do?

Sally should advise parties they deal with in a transaction to immediately record any documents associated with the transaction that could affect the title.

A five-year lease of a 10,000-SF warehouse prohibits assignment. after two years, the tenant is unable to continue with the full rent payment and arranges with another tenant to take over one-half of the space and pay one-half of the rent for the remaining term. What is this agreement called?

Sublease

Gross Lease

Tenant pays rents, landlord pays all expenses of property; most common form of residential lease

What is escheat?

The transfer of title of property to the state when the owner dies intestate and no lawful heirs can be located.

What is the function of a warrant in a deed?

To make a promise or guarantee ny the grantor to the grantee

Which type of warrant assures the grantee that the grantor has the legal rights to convey the property?

Warranty of Seisin

Which type of warrant assures the grantee that he/she will not suffer hostile claims against the ownership of the property?

Warranty of quiet enjoyment

What is the difference between a specific and a general Lien?

a lien may be specific to one property, or be general in nature and apply to any property the person may own.

What is a lis pendens?

a notice of pending lawsuit against a property owner that might affect the title to the property

What is a chain of title?

a timeline of recorded documents resulting from a search of the public records that links all past owners of a parcel of land from the root of title to the present day.

Which statement best describes the difference between actual notice and constructive notice? a. Actual notice is provided by physical possession, whereas constructive notice is achieved by recording documents in the public records. b. Actual notice is provided when a deed i recorded in the public record, whereas constructive notice is implied by possession of legal papers c. Actual notice provides evidence of legal ownership, whereas constructive notice does not provide evidence of legal ownership. d. actual notice provides the best evidence of ownership since it has a higher legal priority than constructive notice.

a. Actual notice is provided by physical possession, whereas constructive notice is achieved by recording documents in the public records.

All of the following are required in a deed for the deed to be valid, EXCEPT: a. The Sales price b. The signature of the competent grantor and two witnesses c. A legal description of the property and the legal rights being conveyed. d. A granting clause or words of conveyance

a. The Sales price

All of the following statements about a lease are accurate, EXCEPT: a. a lease agreement must be in written form b. A lease creates a legal interest in real property but does not convey ownership c. Through a lease, a lessor grants the right of occupancy and use to the lessee d. A valid lease can be entered into only by legally competent parties.

a. a lease agreement must be in written form it can be oral or in writing.

All of the following statements about a quitclaim deed are accurate, EXCEPT: a. a quitclaim deed warrants that the grantor owns and has the legal right to convey the property b. a quitclaim deed can be used in a divorce action when one spouse relinquishes his or her interest in the property to the other spouse. c. a quitclaim deed is the quickest and least expensive way to cure defects in title d. A quitclaim deed can be used to remove an easement from a property.

a. a quitclaim deed warrants that the grantor owns and has the legal right to convey the property

All of the following statements about an easement in gross are accurate, EXCEPT: a. an easement in gross is an unauthorized physical intrusion onto property owned by another, such as a fence built over the property b. the owner of an easement in gross can sell the easement to another entity c. a utility easement is an easement in gross d. The owner of an easement in gross can give ip the easement to the property owner by a quitclaim deed.

a. an easement in gross is an unauthorized physical intrusion onto property owned by another, such as a fence built over the property

All of the following are required conditions by which an owner may lose title to another person by adverse possession, EXCEPT a. the claimant has remained in possession of the property with the permission of the owner. b. The tru owner "slept on his rights" and failed to eject the trespasser who is claiming ownership c. there has been open, adverse, hostile, and exclusive possession of the property for a period of at least seven continuous years. d. the possessor has paid all real estate taxes for all years in possession of the property.

a. the claimant has remained in possession of the property with the permission of the owner.

All of the following statements about deed restrictions (restrictive covenants) are accurate, EXCEPT: a. Deed restrictions are usually placed against multiple properties by a developer or builder b. Deed restrictions are government limitations placed on the use of property to protect the public c. Deed restrictions may limit virtually anything that is not contrary to law, such as architectural style, paint color, fencing and landscaping. d. Enforcement of deed restrictions is the responsibility of the affected property owner.

b. Deed restrictions are government limitations placed on the use of property to protect the public

All of the following are superior liens, which take precedence over junior liens, EXCEPT: a. Special Assessment lien b. Mortgage lien c. Real estate property tax lien d. Federal estate tax lien

b. Mortgage lien

Which transfer of ownership would be considered an example of voluntary alienation? a. transfer of property to the state resulting from an individual who died intestate, with no known heirs. b. Transfer of title to an heir upon the death of an individual who died testate. c. transfer of ownership to an individual resulting from open, adverse, hostile, and exclusive possession of the property for a period of 7 continuous years. d. transfer of property to legal heirs upon the death of an individual who died intestate.

b. Transfer of title to an heir upon the death of an individual who died testate.

Which of the following would be use to cure a defect in title of real property? a. mortgage b. quitclaim deed c. title insurance d. Contract for purchase and sale

b. quitclaim deed

All of the following statements about an opinion of title are accurate, EXCEPT: a. An opinion of title is written statement of opinion b. An attorney forms an opinion of title after reviewing the abstract from a title search c. An attorney's opinion of title is a guarantee that the title is good. d. An attorney can be sued if his or her opinion of title is later determined to have been faulty.

c. An attorney's opinion of title is a guarantee that the title is good.

All of the following statements about eminent domain are accurate, EXCEPT: a. a property owner is entitled to just compensation for the taking of his or her property under eminent domain b. A condemning authority must pay all costs associated with a condemnation proceeding c. Eminent domain allows government to obtain ownership of private property for any type of use deemed necessary. d. A property owner is entitled to negotiate with the condemning authority to arrive at a price for his or her property.

c. Eminent domain allows government to obtain ownership of private property for any type of use deemed necessary.

Which of the following is a correct combination regarding alienation of property? a. Voluntary alienation - deed, will, eminent domain b. Voluntary alienation- deed, escheat, will c. InVoluntary alienation- Adverse possession, eminent domain, escheat d. Voluntary alienation- will, deed, Eminent domain.

c. InVoluntary alienation- Adverse possession, eminent domain, escheat

Liens may be specific to one property or be general in nature and apply to any property the person may own. Which of the following liens is a general lien? a. Construction Lien b. Property tax lien c. Judgment lien d. Mortgage lien

c. Judgment lien

All of the following are required elements of a valid deed, EXCEPT: a. Granting Clause b. Premises clauses c. Signature of the grantee d. Signature of the grantor

c. Signature of the grantee

Which of the following is the warrant in a deed in which the grantor assures the grantee freedom from hostile claims against their ownership? a. Habendum Clause b. Warrant of Seisin c. Warrant of quiet enjoyment d. Reddendum Clause

c. Warrant of quiet enjoyment

All of the following statements about a lien are accurate, EXCEPT: a. a lien can be placed against a property voluntarily by the owner or involuntarily by a creditor b. if the property owner fails to pay the lien holder, the lien holder can sue to have the property sold so that payment may be made from the proceed of the sale. c. a lien is used to transfer title from a property owner who owes a bent to another party d. A lien is a financian claim against a property that is used to secure the payment of a debt or other obligation owed by a property owner.

c. a lien is used to transfer title from a property owner who owes a bent to another party

Which of the following is required for a valid deed? a. must be notarized b. must be recorded c. must be witnessed d. must be acknowledge

c. must be witnessed

Which of the following is required to obtain title by adverse possession? a. possession of the property for one month b. pay the taxes on the property for two years c. notorious, open, hostile, adverse and exclusive possession of the property for 7 years or more consecutive years. d. Open and continuous use for 20 or more years.

c. notorious, open, hostile, adverse and exclusive possession of the property for 7 years or more consecutive years.

What activity regarding residential leases may a real estate licensee engage in?

can fill in the blanks on model residential lease forms approved by the Florida Supreme Court covering a period of one year or less. however, a licensee CANNOT modify the form in any way or add attachments or addenda.

All of the following statements about a deed are accurate, EXCEPT: a. the party who conveys ownership is known as the grantor; the party to whom ownership is conveyed is known as the grantee b. A deed is used to accomplish alienation of title c. to be valid, a deed must be in writing d. The grantee must sign the deed.

d. The grantee must sign the deed.

All of the following statements about title insurance are accurate, EXCEPT: a. there is no florida law that requires borrowers to obtain title insurance. b. mortgage lenders may require a borrower to obtain a lender's title insurance policy before making a loan c. a mortgagor's title insurance policy protects a borrower against loss that results from a title defect and is not transferable to another owner. d. a mortgage lender obtains a mortgagee title insurance policy to protect itself against loss that results from a title defect.

d. a mortgage lender obtains a mortgagee title insurance policy to protect itself against loss that results from a title defect.

If a property is foreclosed because the owner failed to make mortgage payments, and also failed to pay property taxes and federal income taxes, which of the following lien holders has the highest priority? a. Federal Government b. Mortgage lender c. Homeowners' association d. county government

d. county government

Which of the following is a valid reason for the government to utilize its eminent domain power? a. the town council wishes to sell land containing a closed government office building b. the city council has decided that it would prefer that a developer tear down historic homes, and replace them with a private condo complex c. government has decided to build a new shopping center in conjunction with a private developer d. government has decided to build a new interstate highway by-pass of the city to help move traffic more quickly.

d. government has decided to build a new interstate highway by-pass of the city to help move traffic more quickly.

Which of the following statements is true regarding an attorney's opinion of title? a. it guarantees the title b. it guarantees the authenticity of the documents c. it is the same as title insurance d. it is rendered after an examination of an abstract

d. it is rendered after an examination of an abstract

Which statement is correct concerning a quitclaim deed a. the only warrant contained in the deed is the warrant of seisin b. the grantor cannot transfer ownership under a quitclaim deed c. a quitclaim deed transfer temporary title d. it may be used to cure defects in title.

d. it may be used to cure defects in title.

Which instrument transfers title from one individual to another?

deed

Which condition correctly describes the requirement for a lease longer than one year to be enforceable?

in writing, signed by landlord, and witnessed by two people

What is an easement by prescription as defined by Florida statutes?

is a right of access that is created by 20 years or more of continuous and uninterrupted use of a portion of another party's property.

What is descent and distribution?

is a statutory system created by law that provides for the involuntary transfer of title to legal descendants upon the death of an individual who dies intestate.

What is an assignment of lease?

occurs when a lessee transfers all of the leased space for the entire remaining leased period

What does "title to real property" refer to?

ownership of specified rights that form an estate. the type of estate is based on all or specified portions of the bundle of rights that include possession, disposition, enjoyment, exclusion, and control

What determines the priority of construction liens?

the date on which the first material were delivered or labor was first performed on the property.

What determines the priority of Junior Liens?

the earliest the lien was recorded

For what is a personal representative's deed used?

to convey the property of a person who dies intestate.

What is a sublease?

transfer less than 100% of the space that has been leased, or makes a transfer of use of the property for a shorter period-of-time. The original lessee remains responsible for payments.

What is Alienation of Title?

transferring or conveying ownership from one party to another.