Unit 9 - Conveyance of Title (Questions)

What type of will is conveyed by handwriting the individual's desires? A) Holographic B) Statutory C) Executed D) Primary

Holographic

Which of the following are traditionally covered by a standard title insurance policy? A) Changes in land use due to zoning ordinances B) Unrecorded rights of persons in possession C) Unrecorded liens not known to the policyholder D) Improperly delivered deeds

Improperly delivered deeds

the grantors promise to compensate the grantee if title fails at any future

covenant of warranty forever

The gift of real property by will is called a devise. True False

True

The sale of a property is an example of voluntary alienation. True False

True

Which type of deed is used by a trustee? A) Quitclaim deed B) Deed of trust C) Reconveyance deed D) Trustee's deed

Trustee's deed

Which of the following is NOT covered by a standard title insurance policy? A) Incompetent grantors B) Unrecorded rights of parties C) Forged documents D) Incorrect marital statements

Unrecorded rights of parties

A title search in the public records may be conducted by A) anyone. B) attorneys and abstractors only. C) anyone who obtains a court order under the Freedom of Information Act. D) attorneys, abstractors, and real estate license holders only.

anyone

An abstract of title does NOT provide evidence of title unless it is accompanied by a A) letter of insurance coverage. B) letter of warranty. C) copy of the title insurance policy. D) certificate of title.

certificate of title.

Standard coverage in an owner's title insurance policy would cover all of the following EXCEPT A) forged documents. B) incompetent grantors. C) changes in land use brought about by zoning ordinances. D) defects found in public records.

changes in land use brought about by zoning ordinances.

The legal presumption that information may be obtained by an individual through due diligence is A) constructive notice. B) priority. C) none of these. D) actual notice.

constructive notice.

warrants the property is free from liens, unless expressly stated

covenant against encumbrances

the grantor's promise to obtain any other documents necessary to convey good title

covenant of further assurance

makes the grantor liable for damages if the grantee's title is found to be inferior

covenant of quiet enjoyment

A title search is an examination of which of the following? A) All public records to determine if there are any defects in the chain of title B) The records of the conveyances of ownership C) All of these D) Tax records, special assessments, and other recorded liens

All of these

In states with transfer taxes, what is the typical time frame for paying the transfer tax? A) During an executor contract B) At the time of recording the deed C) Before the buyer moves into the property D) At closing

At the time of recording the deed

Which type of deed merely implies but does NOT specifically warrant that the grantor holds good title to the property? A) Special warranty B) Bargain and sale C) Quitclaim D) Trust deed

Bargain and sale

A sells a portion of property to B, and B promptly records the deed in the appropriate county office. If A tries to sell the same portion of property to C, which of the following statements is TRUE? A) C has been given constructive notice of the prior sale because B promptly recorded the deed. B) Because C's purchase of the property is the more recent, C will have priority over B's interest, regardless of when B recorded the deed. C) C has been given actual notice of the prior sale because B promptly recorded the deed. D) Because C purchased the property from its rightful owner, C is presumed by law to be aware of B's prior interest.

C has been given constructive notice of the prior sale because B promptly recorded the deed.

Which of the following is NOT proof of ownership? A) Certificate of title B) Title insurance C) Torrens title D) Deed

Deed

Which of the following is not covered by an extended policy? A) Defects that may be discovered by an inspection B) Defects and liens listed in the policy C) Certain unrecorded liens D) Rights of parties in possession

Defects and liens listed in the policy

The words of conveyance are found in which clause? A) Reservations clause B) Acceleration clause C) Granting clause D) Habendum clause

Granting clause

Chain of title includes liens and encumbrances. True False

False

It is common in real estate transactions for buyers to search public records for evidence of title. True False

False

Real property can always be conveyed by nuncupative and holographic wills. True False

False

When a person dies testate, real estate and personal property pass to the decedent's heirs according to the state's statute of descent and distribution. True False

False

The grantee receives the greatest protection with which type of deed? A) Bargain and sale with covenant B) General warranty C) Quitclaim D) Executor's

General warranty

Which of the following is TRUE about the recording of documents? A) Recording real estate documents provides constructive notice of their contents to the world. B) To be recorded, real estate documents must first be registered with the court. C) All real estate documents must be recorded to be valid. D) Recording real estate documents provides actual notice of their contents to the world.

Recording real estate documents provides constructive notice of their contents to the world.

Which of the following is TRUE? A) While personal property can always be conveyed by a nuncupative will, real property cannot. B) No states permit real property to be conveyed by nuncupative wills or holographic wills. C) Some states do not permit real property to be conveyed by nuncupative wills or holographic wills. D) While personal property can always be conveyed by a holographic will, real property cannot.

Some states do not permit real property to be conveyed by nuncupative wills or holographic wills.

Which of the following is TRUE regarding a transfer tax in Texas? A) The taxpayer purchases tax stamps from the county clerk's office in the county in which the deed is recorded. B) The transfer tax may be paid by either the buyer or seller. C) The tax is payable at the time the deed is recorded. D) Texas does not have a transfer tax.

Texas does not have a transfer tax.

The mortgagee received a title insurance policy on the property a buyer is pledging as security for the mortgage loan. Which of the following is TRUE? A) The amount of coverage increases as the borrower's equity increases. B) The amount of coverage is commensurate with the loan amount. C) The policy guarantees that the buyer's equity will be protected. D) The policy is issued for the benefit of the buyer.

The amount of coverage is commensurate with the loan amount.

What happens if a will has been modified? A) The court will dismiss the entire will and determine distribution to the heirs. B) If the modification is notarized, then the modification stands. C) The court will decide how the document should be probated. D) The modification will be ignored, and the original will be used.

The court will decide how the document should be probated.

During probate proceedings, public records are examined to determine whether any defects exist in the chain of title. True False

The statement is false. A title search is an examination of all of the public records to determine whether any defects exist in the chain of title.

Which of the following is NOT a requirement for making a will? A) The testator must be of legal age. B) The drawing of a will must be voluntary. C) The will must be delivered to the person receiving the property while the testator is still alive. D) A testator must have legal capacity to make a will.

The will must be delivered to the person receiving the property while the testator is still alive.

warrants the grantor has the right to convey title

covenant of seisin

A marketable title is free of serious defects and does not expose the purchaser to litigation. True False

True

Constructive notice is the legal presumption that information may be obtained by an individual through due diligence. True False

True

Probate is a formal judicial process that proves or confirms the validity of a will, determines the precise assets of a deceased person, and identifies the people to whom the assets are to pass. True False

True

A person who dies testate can transfer title to his real estate upon his death through which type of document? A) Will B) Warranty deed C) Quitclaim deed D) Special warranty deed

Will

All of the following would be considered evidence of marketable title EXCEPT A) a certificate of title by a real estate attorney. B) a title commitment or title insurance policy. C) a certificate of title by a real estate broker. D) an abstract of title with a legal opinion.

a certificate of title by a real estate broker.

All of the following may be used to prove ownership EXCEPT A) a Torrens certificate. B) a certificate of title. C) title insurance. D) a deed.

a deed.

An owner of real estate was declared legally incompetent and was committed to a state mental institution. While institutionalized, the owner wrote and executed a will. The owner later died and was survived by a spouse and three children. The real estate will pass A) to the owner's spouse. B) to the heirs mentioned in the owner's will. C) according to the state laws of descent. D) to the state.

according to the state laws of descent.

A homeowner signed a deed transferring ownership of his house to a friend. To provide evidence that his signature was genuine, he executed a declaration before a notary. This declaration is called an A) affirmation. B) affidavit. C) acknowledgment. D) estoppel.

acknowledgment

An individual who has searched the public records and inspected the property has acquired direct knowledge of anyone with an interest in that parcel of real estate. This is called A) constructive notice. B) title search. C) actual notice. D) direct knowledge investigation.

actual notice.

The possession of property by an adverse possession claimant must be A) notorious. B) hostile. C) all of these. D) open.

all of these.

All of the following would be revealed by a title search EXCEPT A) a mortgage. B) a special assessment. C) an encroachment. D) a recorded mechanic's lien.

an encroachment.

Standard title insurance protects the buyer from A) defects found in public records. B) all of these. C) defects known to the buyer. D) unrecorded liens not known by the policyholder.

defects found in public records.

Heirs are associated with A) descent and distribution. B) testate. C) testator. D) probate.

descent and distribution.

When a person dies testate, title to real property transfers to the A) devisee. B) deceased person's heirs. C) descendant. D) testator.

devisee

Under the covenant of quiet enjoyment, the grantor A) ensures that the title will be good against the title claims of third parties. B) warrants that she is the owner and has the right to convey title to the property. C) promises to obtain and deliver any instrument needed to make the title good. D) guarantees to compensate the grantee if the title fails in the future.

ensures that the title will be good against the title claims of third parties.

For a will to be valid, it must be A) involuntarily made. B) executed. C) recorded. D) written by an attorney.

executed

Another name for transfer tax is A) stamp tax. B) delinquent tax. C) grantor's tax. D) declaration tax.

grantor's tax.

A person who has died without a will has died A) testate. B) under the acknowledgment clause. C) in valid conveyance. D) intestate.

intestate

Title to property may be transferred without the owner's consent by A) sales contract. B) involuntary alienation. C) gift. D) voluntary alienation.

involuntary alienation.

When a person dies, ownership of real estate A) passes via the laws of decent and distribution. B) must go through probate. C) passes immediately. D) passes upon notice to all the devisees in a will.

passes immediately.

The person who prepares an abstract of title for a parcel of real estate A) insures the condition of the title. B) inspects the property. C) searches the public records and then summarizes the events and proceedings that affect the title. D) issues title insurance.

searches the public records and then summarizes the events and proceedings that affect the title.

To be valid, a deed must include all of the following EXCEPT A) name of the grantee. B) legal description. C) tax. D) consideration.

tax

A person who has died with a will has died A) under the acknowledgment clause. B) intestate. C) testate. D) in valid conveyance.

testate.

A will can be altered by the A) executor. B) devisees. C) testator. D) heirs.

testator.

The maximum loss for which the company may be liable is A) the amount of the loan. B) the face amount of the policy. C) the sale price of the property. D) none of these.

the face amount of the policy.

Every deed must be executed by A) both the grantee and grantor. B) the grantee. C) the mortgagor. D) the grantor.

the grantor.

Actual notice is A) all unrecorded documentation. B) inheritance taxes. C) when the information is available and someone has been given it and actually knows it. D) the order of when documents or liens were recorded.

when the information is available and someone has been given it and actually knows it.