A-3 Title Transfer - Deeds and Title Insurance

Question 1

A broad form title insurance policy is usually bought for the benefit of the:
A. buyer
B. New home buyer
C. Purchaser under a land contract
D. Lender

Answer 1

D - Lender

Question 2

A quit claim deed is commonly used to:
A. Convey title
B. release an interest in title
C. secure a loan
D. cloud the title to real property

Answer 2

B - release an interest in title

Question 3

Marketable title is all of the following EXCEPT:
A. Merchantable title
B. title to land that is free from encumbrances except those revealed
C. title a court would compel a purchaser to accept
D. perfect title

Answer 3

D - perfect title

Question 4

a warranty deed covenants the grantee against a loss by:
A. casualty
B. defective title
C. property damage
D. eminent domain

Answer 4

B - defective title

Question 5

an interest in title to real property, not government owned, obtained by action at law based on adverse possession best describes:
A. acquisition
B. squatter's rights
C. Prescription
D. homesteading

Answer 5

C - prescription

Question 6

An example of involuntary alienation is where title to real estate passes by:
A. Quit claim deed
B. Trust deed
C. Grant deed
D. Sheriff's deed

Answer 6

D - Sheriff’s deed

Question 7

A "Title Plant" is a:
A. Collection of constructive notice information
B. Subdivision map collection
C. Policy of title insurance
D. Publisher of title insurance policies

Answer 7

A - Collection of constructive notice information

Question 8

First grant or patent in a chain of title is issued by:
A. U.S. Government Patent Office
B. A sovereign power
C. The recorder of deeds
D. The grantee of a simple deed

Answer 8

B - A sovereign power

Question 9

An Affidavit of Value requires which of the following?
A. Grantor's name and signature
B. Grantee's name and signature
C. Sales price of the property
D. All of these

Answer 9

D - All of these

Question 10

That which is not title, but gives the appearance of title is:
A. Color of title
B. Exoneration
C. Alienation
D. Subordination

Answer 10

A - Color of title

Question 11

Which type of will does NOT require witnessing?
A. Holographic
B. Nuncupative
C. Formal
D. All require witnessing

Answer 11

A - Holographic

Question 12

Which of the following would have the weakest claim to title?
A. a person living on a property with an unrecorded deed
B. a person living off the property with an acknowledged deed
C. a person living off the property with a recorded deed
D. a person living on the property with a recorded deed

Answer 12

B - A person living off the property with an acknowledged deed

Question 13

If a property on which there is a lender’s policy of title insurance is sold and the loan is assumed:
A. The lender’s title policy is cancelled
B. The lender’s insurance policy continues in force
C. Policy is assumable if approved by title company
D. New grantee must financially qualify with the insurance company

Answer 13

B - The lender’s insurance policy continues in force

Question 14

What is the maximum number of grantees that can be named in a deed?
A. Two
B. Four
C. Any number
D. Ten

Answer 14

C - any number

Question 15

Which of the following type deeds would NOT give a bona fide buyer insurable quality of title to realty?
A. Warranty deed
B. Special warranty deed
C. Quit claim deed
D. Bargain and sale deed

Answer 15

C - Quit claim deed

Question 16

When issuing a policy of title insurance, the title company is least likely to make an on-site inspection or survey if the policy is:
A. an ALTA policy on a residence
B. an extended coverage policy on a residence
C. an extended coverage policy on rural property
D. a standard policy of title insurance on a residence

Answer 16

D - a standard policy of title insurance on a residence

Question 17

Recordation of a deed is the responsibility of the:
A. Grantor
B. Grantee
C. Lendor
D. Vendor

Answer 17

B - Grantee

Question 18

The clause in a deed which sets forth or limits the extent of the interests in the title being conveyed is:
A. the demising clause
B. the testimonium clause
C. the habendum clause
D. the indenture clause

Answer 18

C - habendum clause

Question 19

Which of the following items is NOT considered to be an element of a deed?
A. Covenants
B. the habendum
C. the moratorium
D. the testimonium

Answer 19

C - the moratorium

Question 20

Which of the following is INCORRECT?
A. a grant deed implies that the property described is free from encumbrances except those revealed and that the grantor has not previously conveyed the property.
B. a grantor of a property is always a seller (vendor)
C. a quit claim deed does not always convey title
D. none of these

Answer 20

B - a grantor of a property is always a seller (vendor)

Question 21

A deed which includes all statutory covenants and one warranty is called:
A. limited warranty deed
B. special seizin deed
C. general warranty deed
D. bargain and sale deed

Answer 21

A - limited warranty deed

Question 22

Delivery of a deed legally takes place:
A. only when the grantor physically hands the deed to the grantee
B. when the grantor hands the deed to a neutral third party
C. when grantor hands the deed to a neutral third party with conditions and instructions to hand to the grantee
D. only when both the grantor has delivered and the grantee has received the deed

Answer 22

C - when grantor hands the deed to a neutral third party with conditions and instructions to hand to the grantee

Question 23

Which of the following is NOT an appurtenance and does NOT pass with a standard warranty deed?
A. Trade fixtures
B. trees
C. shrubs
D. window blinds

Answer 23

A - trade fixtures

Question 24

You pay cash down to the mortgage. What completes the transaction?
A. signing of the purchase contract
B. Delivery of the deed to the grantee
C. signing of the mortgage
D. signing of the affidavit of value

Answer 24

B - delivery of the deed to the grantee

Question 25

``` A devise is an example of a/an______________ conveyance A. Involuntary B. Deductive C. Testamentary D. Defeasible ```

Answer 25

C - Testamentary (definition: of, relating to, or bequeathed or appointed through a will.)

Question 26

``` A natural person will ordinarily deed his property by: A. quit claim deed B. general warranty deed C. special warranty deed D. disclaimer deed ```

Answer 26

B - general warranty deed

Question 27

``` There are four major title evidences. Which one is in common use in Arizona? A. Abstract and opinion B. title insurance C. torrens certificate D. Certificate of title ```

Answer 27

B - title insurance

Question 28

``` Under the _____, the grantor warrants that at the time of delivery, he or she has the right to convey legal title. A. covenant of seizin B. covenant of further assurance C. covenant of quiet enjoyment D. covenant of title ```

Answer 28

A - covenant of seizin

Question 29

``` Which of the following warrants title by the seller for them and under them only? A. general warranty deed B. special warranty deed C. quit claim deed D. disclaimer deed ```

Answer 29

B - special warranty deed

Question 30

``` The main difference in the various types of deeds is in their: A. warranties B. execution C. encumbrances D. legal description ```

Answer 30

A - warranties

Question 31

``` Which of the following will a standard policy of title insurance insure against? A. forgery B. unrecorded encumbrances C. mining claims D. building codes ```

Answer 31

A - forgery

Question 32

``` Which of the following deeds would give a buyer the greatest protection in a purchase? A. Deed in Lieu of Foreclosure B. quit claim deed C. warranty deed D. bargain and sale deed ```

Answer 32

C - warranty deed

Question 33

A definition of involuntary alienation is: A. title to property cannot be taken away without the owner's consent B. aliens may not hold title in fee simple C. title to property can be conveyed by action of the court D. the court can take a person's property without compensations

Answer 33

C - Title to property can be conveyed by action of the court

Question 34

Deeds are recorded: A. to provide constructive notice of their existence B. Because the law requires it C. to guarantee ownership D. to eliminate all other claims on title

Answer 34

A - to provide constructive notice of their existence

Question 35

``` Which of the following is NOT synonymous with "title"? A. Right B. degree of interest C. possession D. estate ```

Answer 35

C - possession

Question 36

``` Which of the following will NOT transfer real estate? A. Will B. Bill of sale C. Involuntary alienation D. voluntary alienation ```

Answer 36

B - Bill of sale

Question 37

``` Which of the following is NOT necessary for a valid transfer of title to real estate? A. signing of the deed B. acknowledgement of the deed C. delivery of the deed D. recording of the deed ```

Answer 37

D - recording of the deed

Question 38

Who has the weakest claim to title? A. a person living on the property with a deed B. a person living off the property with a recorded grant deed C. a person living off the property with a quit claim deed D. a person living on the property with a recorded grant deed

Answer 38

C - a person living off the property with a quit claim deed

Question 39

``` When purchasing a piece of property in which your spouse is not to have any interest, which deed would be used to relinquish any rights to the property? A. quit claim deed B. gift deed C. disclaimer deed D. releasing deed ```

Answer 39

C - disclaimer deed

Question 40

``` Which of the following documents would be used to remove a cloud on title? A. special warranty deed B. quit claim deed C. disclaimer deed D. bargain and sale deed ```

Answer 40

B - quit claim deed

Question 41

An affidavit of value would be used in which of the following circumstances? A. to assist the assessor in determining property taxes B. to verify property square footage C. to transfer title to the buyer D. to remove existing liens on the property

Answer 41

A - to assist the assessor in determining property taxes

Question 42

``` At what point does recordation take place? A. docket and page number are assigned B. at close of escrow date C. the date the document was signed D. the date the document was notarized ```

Answer 42

A - docket and page number are assigned

Question 43

``` An easement created by open, continuous and exclusive use for 10 years is called: A. an easement by implication B. an easement by necessity C. an easement by prescription D. an easement by encroachment ```

Answer 43

C - an easement by prescription

Question 44

``` When a buyer receives a standard title policy it would cover: A. questions of survey B. lender's rights C. incompetent grantors D. mechanics liens ```

Answer 44

C - incompetent grantors

Question 45

``` when a condition is placed in a deed a violation of the condition could result in which of the following? A. forfeiture B. escheat C. estoppel D. encroachment ```

Answer 45

A - forfeiture

Question 46

``` When a non-navigable stream recedes the land belongs to the adjacent property owner by: A. adverse possession B. easement by prescription C. reliction D. riparian rights ```

Answer 46

C - reliction

Question 47

``` When the law allows for tacking this would refer to which of the following easements? A. appurtenance B. prescription C. in gross D. necessity ```

Answer 47

B - prescription