RE Unit 3 Quiz

Question 1

In a quitclaim deed, the grantor covenants

a. that the title is marketable.
b. nothing.
c. that he or she owns the property and has the right to convey title.
d. that he or she will defend any claims.

Answer 1

b. There are no covenants (promises) in a quitclaim deed.

Question 2

To be valid, a deed must have a

a. property description.
b. list of encumbrances.
c. competent grantee.
d. description of all improvements.

Answer 2

a. Valid deeds must contain a property (or legal) description.

Question 3

In regard to a deed, the term “execution” refers to

a. notarization.
b. recordation.
c. delivery and acceptance.
d. the signature(s) of the grantor(s).

Answer 3

d. Execution of a document refers to the act of signing it.

Question 4

The covenant affirming that the grantor holds title and has the right to convey it to another is the covenant

a. of further assurance.
b. against encumbrances.
c. of quiet enjoyment.
d. of seizin.

Answer 4

d. The covenant of seizin affirms that the grantor owns and has the right to convey title

Question 5

If a lender wanted to convey title on a foreclosed property with no warranties to the grantee, it would be logical to use a

a. quitclaim deed.
b. special warranty deed.
c. warranty deed.
d. sheriff’s deed.

Answer 5

a. A quitclaim deed conveys whatever title the grantor holds and gives no warranties or convents, past or future. This deed would allow the bank to have no future title claims or liabilities.

Question 6

The probate process

a. settles disputes between co-owners of property.
b. rules on warranty claims.
c. is required if the party died testate.
d. determines claims under adverse possession.

Answer 6

c. Probate is the process by which a deceased person’s instructions are carried out and is required if the party died testate (with a will).

Question 7

Which parties must sign a deed to make it valid?

a. Grantors only
b. Grantees only
c. Both grantors and grantees
d. Lessees only

Answer 7

a. The grantors sign (execute) the deed.

Question 8

Ownership in severalty refers to

a. more than one owner.
b. the right of survivorship.
c. ownership between husband and wife.
d. ownership by one person or entity.

Answer 8

d. Severalty refers to sole (severed) ownership.

Question 9

Which must always be TRUE of tenants in common?

a. Each tenant must have an equal ownership share.
b. Each tenant rents his or her share of the land.
c. Each tenant has the right of survivorship.
d. Each tenant must join in a conveyance of title to the property.

Answer 9

d. While shares in a tenancy in common may be unequal, each co-owner must sign the document(s) of title conveyance (deed, contract for deed).

Question 10

An unmarried couple living together wants to buy a house. If either one should die, they want the deceased’s share to go to his or her heirs.

Which form of ownership will they most likely choose?

a. Tenancy in common
b. Tenancy by the entirety
c. Joint tenancy
d. An estate in severalty

Answer 10

a. In a tenancy in common, the deceased person’s interest goes to his or her heirs. There is no right of survivorship.

Question 11

Which of the following would give the grantee the most protection?

a. General warranty deed
b. Limited warranty deed
c. Quitclaim deed
d. Bargain and Sale deed

Answer 11

a. The general warranty deed, in which the grantor gives five covenants and warranties, offers the grantee the most protection.

Question 12

Which of the following is NOT essential to the validity of a deed?

a. Recording
b. Competent grantor
c. Execution by the grantor
d. Words of conveyance

Answer 12

a. Deeds need not be recorded to be valid.

Question 13

When a couple buys property together and they do NOT specify a form of ownership, they are considered to be

a. joint tenants.
b. tenants in severalty.
c. tenants by the entirety.
d. tenants in common.

Answer 13

d. Multiple ownership by co-owners is a tenancy in common unless otherwise specified.

Question 14

Donna Maple owned a home in severalty. She died testate. After her death, her interest in the home transferred to

a. the remaining owners.
b. the devisee she named in her will.
c. the state in which she died.
d. the executor of her estate.

Answer 14

b. Sole owners may will their property to others. One who acquires title to real property by will is called a devisee.

Question 15

Conveyance of title occurs at the moment the

a. deed is delivered and accepted.
b. deed is recorded.
c. grantor receives the consideration.
d. deed is signed by the grantor.

Answer 15

a. Title transfers upon delivery and acceptance of the deed.

Question 16

The developer of a condominium wishes to relocate the boundaries of a condominium unit.

The developer should

a. terminate the property manager’s contract.
b. terminate the association’s master insurance policy.
c. file an amendment to the condominium declaration.
d. foreclose and sell the property at auction.

Answer 16

c. The declaration creates the condominium unit boundaries; therefore, the declaration will need to be amended for any changes.

Question 17

The deed that limits the grantor’s warranties to the grantor’s period of ownership is the

a. quitclaim deed.
b. special warranty deed.
c. general warranty deed.
d. trustee’s deed.

Answer 17

b. The covenants in a special (limited) warranty deed relate only to the grantor’s period of ownership.

Question 18

A right acquired by a non-owner through use of the lands of another is an easement

a. by expression.
b. appurtenant.
c. by prescription.
d. by necessity.

Answer 18

c. When one person uses the land of another for a specific purpose, without permission, the user could acquire an easement by prescription.

Question 19

A party that takes possession of another’s real property without permission may at some future date be able to claim?

a. Title due to adverse possession
b. Prescriptive easement rights
c. A qualified fee estate
d. Reversionary rights

Answer 19

a. A party that takes possession of another’s real property without permission actually, openly, continuously, exclusively, notoriously, and hostilely for the minimum statutory period may be able to go to court and claim title to the property.

Question 20

All of the following are necessary for a valid deed EXCEPT

a. the signature of the grantee.
b. words of conveyance.
c. a legal description.
d. the names of the parties.

Answer 20

a. The deed is signed by the grantor(s) only.

Question 21

The form of ownership in which each owner owns and finances their individual unit plus owns a share of common elements is called

a. condominium.
b. severalty.
c. cooperative.
d. partnership.

Answer 21

a. In a condominium, the owner owns and finances an individual unit. In a cooperative, the owner finances the shares of stock that represents ownership in the cooperative and has a propriety lease providing rights of possession to the unit.

Question 22

Which of the following is most closely associated with the voluntary alienation of real property?

a. A bill of sale
b. Adverse possession
c. A deed
d. Easement by necessity

Answer 22

c. A deed is an example of voluntary alienation, reciting that the grantor willingly severs his ownership to the property and conveys it to another.

Question 23

In a limited partnership, the limited partner’s liability is

a. the same as all the other partners.
b. limited to whatever amount the general partners deem appropriate.
c. the same as all the other the general partners’ liability.
d. limited to the amount of their investment in the partnership.

Answer 23

d. A limited partner’s liability is limited to the amount of their investment in the partnership.

Question 24

With tenants in common, the obligation to pay the property taxes is

a. based on the shares of ownership.
b. shared equally since shares must be equal in this form of ownership.
c. the obligation of whichever owner survives.
d. the responsibility of both the individual and other owners.

Answer 24

d. The obligation to pay property taxes in tenancy in common belongs to both the individual and the owners as a group because, from the taxing authority’s point of view, taxes are due for the property as a whole regardless of which owner pays them. If one of the owners fails to pay a portion of taxes, the government can come after the entire group. The individual owners may then go after each other to recover their fair share of taxes paid.

Question 25

The person who signs the deed and conveys title is called the

a. trustor.
b. lessor.
c. grantee.
d. grantor.

Answer 25

d. The grantor is the only party that signs the deed.