Anita is a new buyer. Luckily, ______ will help her before the sale and can reimburse her after the sale if a title issue arises.
Her buyer’s agent
Her title insurance
Seller credits
Seller disclosures
What’s the term for a notice given directly to and received by a person?
Actual notice
Constructive notice
Proper notice
UPS notice
Which one of the following is true about ownership or title to a property?
Constructive notice to the public of real property ownership occurs when the deed is recorded.
The last party to record has priority.
The seller is responsible for paying for owner’s and lender’s title insurance.
Title isn’t finalized until the deed has been recorded.
You’ve just received a trio from a title company. It contains an assessor’s map, property profile, and one other item. What is it?
CMA
Deed
Marketing report
MLS listing
Paula is bidding on a property that’s being sold at a foreclosure auction. She’s excited about the great deal she’s getting on the property after she finds out she submitted the winning bid. What could cause Paula’s great deal to turn into a nightmare?
The lender has the option to refuse her bid and revoke the deed transferring ownership to Paula.
The previous owner may redeem the property by paying Paula at least 50% of the property’s market value.
The title insurance company may charge her additional fees after closing to continue the title policy.
The title to the property may have hidden issues that could cost her a lot of money to clear.
What type of title insurance covers defects of an incorrect survey and boundary encroachments?
Extended title insurance
Homeowners insurance
Standard title insurance
Title survey and boundary insurance
Which document is used to establish proof of ownership?
Abstract of title
Chain of title
Deed
Title insurance
A title examiner has decided to limit the title search to the last 50 years. What type of title examination is this considered?
Abbreviated search
Complete search
Index search
Limited search
What can buyers do to protect themselves from title issues when purchasing property?
Ensure the seller’s name is on the deed.
File a lis pendens claim at the court before buying the property.
File a security agreement at the county clerk’s office.
Purchase title insurance.
What’s a marketable title?
A title that a relative has gifted
A title that has been granted by public grant
A title that is about to go on the market
A title that is clear and free of encumbrances
Which document is used to fix an error in the title history?
Correction deed
Limited search
Title examination
Title report
When Mark and Chrissy discovered that the seller of their recently purchased home had committed title fraud, they were told their title insurance policy wouldn’t cover the legal costs to clear the title to their property. What’s the most likely reason for this?
The title company was a scam organization.
They didn’t purchase lender’s title insurance.
They didn’t purchase owner’s title insurance.
They failed to make payments on their title insurance.
Which document provides the buyer with data about the property’s title record, legal description, and other matters that may need to be acted upon in order to obtain a marketable title?
Correction deed
Limited search
Title examination
Title report
When property changes hands, the deed is recorded and a fee is charged. What is the benefit to the grantee of having the deed recorded?
It impacts who owns the property.
It protects against foreclosure.
It puts the public on notice regarding ownership.
It’s required by law.
In a typical transaction, which of these title defects is unlikely to cause a problem for the buyer?
A faulty survey
An unrecorded lien
A past error in recording title transfer
The seller’s existing mortgage
What is the purpose of the title search?
To collect evidence that the title is a marketable title, meaning it’s clear and free of encumbrances
To ensure the current owner has the title to give to the buyer
To ensure the title is on the record at the local clerk recorder’s office
To insure the owner against any financial loss due to a defect in the title
Which title insurance policy will cover an owner’s legal expenses when problems with title occur?
Lender’s policy
Owner’s policy
Post-sale policy
Title issue policy
Which option is true if a deed is not recorded after closing?
The buyer must pay a fine to the seller.
The entire closing is void.
The property’s legal ownership can be challenged.
The title never changes hands from the seller to the buyer.
What type of notice results from publicly recording a title transfer?
Actual notice
Attorney notice
Constructive notice
Proper notice
Conrad just closed on the house he’s buying to fix up. Why should he follow up to be sure the deed has been recorded?
He can’t legally make any improvements to the property until the deed is recorded.
He doesn’t legally own the house until that occurs.
Recording provides actual notice that he owns the property.
Recording provides constructive notice that he owns the property.
Christina purchased a house from Thomas. When did she officially gain ownership of the property?
After the appraisal was completed
Prior to closing after approving the Loan Estimate
When actual notice of the deed was given to the mortgage company
With the transfer of deed from the seller to the buyer
As a licensee, you’re helping a couple buy a new home when you come across an issue that indicates there is a cloud on the title. What should you do?
Encourage the couple to move forward with the purchase and not worry about the clouded title.
File an affidavit with the court about the knowledge of the clouded title and tell the couple to move forward with the sale.
Keep moving forward with the sale but recommend the couple purchase title insurance to insure against any potential title problems.
Recommend the couple find another property to purchase, or ask the seller to settle the title through a quiet title action to clear any cloud before moving forward with the sale.
What special concern do foreclosed properties often present?
Buying the property at a discount may have tax implications.
The homeowners may or may not have property insurance.
The property sale may be subject to additional fees that will be passed to the new buyer.
There could be hidden title issues.
With regard to recorded documents in Florida, what kind of notice would be accepted in a court of law, in the absence of other kinds of notice, when the party could reasonably have inferred the notice from existing documents?
Actual notice
Constructive notice
Implied notice
Referred notice
Which one of the following protects the owner against financial loss if the real estate title has defects?
Abstract of title
Chain of title
Deed
Title insurance
Your buyer client is worried about title issues that may arise after closing. What do you remind your client about that will protect him?
Buyer Trust Fund
Litigation
Seller guarantees
Title insurance
Joaquin has filed a quiet title suit against Roger. What’s the purpose of this suit?
To clear up a cloud on title
To clear up a property line dispute
To exercise his right to quiet enjoyment of the property
To prohibit the seller from releasing the buyer’s name
What’s a trio?
A report that establishes the current market value of a home
A report that establishes the physical conditions of a property
A report that shows the history of losses on a personal property
A report that shows the parcel map, owner of record, and property profile
Why is it important to publicly record a deed?
The title insurance policy schedule of exceptions will include anything that’s publicly recorded.
Title insurance policies don’t cover publicly recorded events.
Title insurance policies must be publicly recorded to be legal.
Title representatives and attorneys who perform title searches look for documents that are publicly recorded.
What’s the term for a title examination that searches title history going back fewer than 60 years?
Correction deed
Limited search
Title examination
Title report
Which of these statements about title insurance is true?
“Lender’s policy” and “owner’s policy” are two names for the same thing.
Only the lender may purchase title insurance.
Title insurance coverage includes the service of a “title search” prior to the close of the sale.
Title insurance is an unnecessary expense.
Lisa purchased a home, and six months after the purchase, a stranger knocked on her door and told her he was the true property owner. After investigating, it turns out the person who sold Lisa the property had forged the deed without the true owner’s knowledge. What’s true about Lisa’s situation?
Her homeowner’s policy may protect her from loss.
Her lender must initiate a quiet title action to resolve the issue.
Her title insurance policy may protect her from loss.
The county clerk where the documents were recorded is liable.
Which document establishes path and proof of ownership?
Abstract of title
Chain of title
Deed
Title insurance
What’s a quiet title action?
A lien placed against a potential land owner for property purchased by another
An action to locate and notify all who may have some claim on the title, and determine the validity of all claims
A type of title insurance that reimburses the policyholder if the neighborhood is noisier than normal
A way to anonymously purchase property without filing the title or transfer on record
Which document is used to provide a summary of the title history?
Abstract of title
Chain of title
Deed
Title insurance
9sect.unit3.CeSh.PreLic.Qonly.txt
Which of the following is an instrument of conveyance?
Deed
Mortgage
Title insurance policy
A couple received a general warranty deed when they purchased their house from the previous owner. A couple of months after they moved in, their neighbor drove his four-wheeler across their property to access the lake front. The couple discovered that the previous owner and their neighbor agreed to an easement over the property several years earlier. Which general warranty deed covenant does this represent?
The covenant against encumbrances
The covenant of further assurances
The covenant of quiet enjoyment
The covenant of seisin
Which covenant term means that the grantor both has legal capacity to convey the title and also has the title to convey?
Further assurances
Quiet enjoyment
Right to convey
Warranty forever
A property owner who wishes to convey property to a new owner will generally use a ______.
Deed
Lease
Mortgage
Title abstract
Which required deed clause contains the phrase “to have and to hold”?
Acknowledgment and recording
Granting clause
Habendum clause
Warranty clause
When the government takes private land for public use, compensation is required. This taking process is known as __________.
Deed restriction
Eminent domain
Escheat
Police power
A homeowner owned an acreage in a rural area. They sold a small portion of it to a neighbor in an informal transaction but made no record of the sale or change of ownership. A developer offered the homeowner several million dollars for the entire acreage, and they eagerly accepted the offer. What covenant is the homeowner in danger of violating?
Against encumbrances
Quiet enjoyment
Seisin
Warranty
Which term refers to the person conveying title, often called the “party of the first part,” in a deed?
Grantee
Grantor
Notary public
Witness
Which of the following is an included covenant(s) in a warranty deed?
Covenant of encumbrances
Covenant of right to convey
Covenant of seizure
Covenants of seizure, encumbrances, and right to convey
Which type of deed releases any rights of the grantor to the property to the grantee and clears any clouds on a title, but does not offer any warranties to the grantee?
Bargain and sale deed
Executor’s deed
Quitclaim deed
Referee’s deed
Which of these terms describes the actions that are required to effect a transfer of title by deed?
Acknowledgment
Delivery and acceptance
Granting clause
Habendum
Which option must be included on a deed for it to be valid?
A named beneficiary for inheritance purposes
County treasurer’s approval and signature
List of all neighboring property owners
Names of grantor/grantee
Which of the following could be a valid deed?
A napkin with both parties’ signatures and an oral agreement to sell the land
An oral agreement between two trusted individuals
An oral agreement between two trusted individuals and witnesses
A written document containing all of the required elements and adhering to all document formatting requirements
A property was sold using a general warranty deed. Which one of these statements is true?
Either the buyer or the sellers can convey the property.
The buyer is the grantee.
The buyer is the grantor.
The sellers are the grantees.
In order to convey real property, which one of the following documents would you use?
Deed
Mortgage
Title insurance
Joe Bob is the grantor of a deed, and is in the final stages of transferring a deed to the new owner, Frank. What must Joe Bob do in order to satisfy delivery and acceptance of the deed to Frank?
Deliver the deed to Frank, his agent or attorney, or the title company issuing the title
Get Frank’s signature on the official acceptance letter notarized and recorded at the county clerk’s office.
Send the deed via certified mail so that the shipment is officially tracked
Submit delivery and acceptance paperwork to the Board of Submission and Acceptance
Which type of deed contains the strongest and broadest form of title guarantee?
A bargain and sale
Full covenant and warranty
Quit claim
Special
Which term refers to the person receiving title, often called the “party of the second part,” in a deed?
Grantee
Grantor
Notary public
Witness
Bob and Kate entered into a private agreement that Kate could cross Bob’s property to get to an orchard behind their two properties. This is an example of ______________.
A lien
An easement
Escheat
Taxation
A ______ is a method of conveying real property from one party to another.
Deed
Power of attorney
Recordation
What phrase or words are required on a deed and are considered an “act of conveyance”?
“Between ____ and ____.”
“Forever and always”
“Grant and convey”
“Witnesseth and acknowledged”
Mark is a buyer who wants to know which words in a deed make it clear that the property is being conveyed with the full bundle of rights. What words should Mark look for?
Absolute ownership
Fee simple
Grant and convey
In habendum
A private limit on how land can be used that is created when a property is developed is known as __________.
A deed restriction
A lien
Escheat
Police power
Which term describes an oath by a subscribing witness, such as a notary public, that the grantor’s signing of the deed is a voluntary act and enables a deed to be recorded?
Acknowledgment
Grantee
Granting clause
Habendum clause
You sign an agreement to rent your cousin’s property for a year. This is an example of __________.
A deed restriction
A lease
Eminent domain
Escheat
When Ruby purchased her property, she agreed to allow it to be subject to foreclosure if she didn’t pay her property taxes. What restriction is this an example of?
Easement
Escheat
Lease
Lien