Chapter 22 Review: Title Search and Deeds

Question 1

In order for a document to be recorded at the registry of deeds, it must be ___________________ by a public official who certifies the signing of the document

Answer 1

acknowledged or notarized

Question 2

Under a Race statute, the buyer who records _____ is the legal owner

Answer 2

first

Question 3

Under a Notice statute, the second buyer gets title if the prior owner

Answer 3

did not record

Question 4

Under a Race-Notice statute, a second buyer who records ____ and who does not have _____ of a prior sale is the owner. (Maine is a Race-Notice state.)

Answer 4

first

notice

Question 5

Legal notice that anyone can find if they look for it at the registry of deeds is called _________ notice

Answer 5

constructive

Question 6

Actual notice occurs when the party has _______ ________ of the information.

Answer 6

actual knowledge

Question 7

A ________ lien is placed against both real and personal property; an example is an IRS lien

Answer 7

general

Question 8

A ______ lien is placed against a specific property

Answer 8

specific

Question 9

A mortgage is an example of a ______ lien

Answer 9

voluntary

Question 10

A mechanic’s lien, placed by a carpenter who was not paid for his labor, is a type of ________ lien

Answer 10

involuntary

Question 11

When a property is sold, the senior lien is paid _____. Property taxes and special assessments are always paid before any other lien

Answer 11

first

Question 12

Junior lienholders are paid in the order of ______ at the registry of deeds

Answer 12

recording

Question 13

A document recorded at the registry of deeds that notifies the public that real estate is the subject of a lawsuit is called a ___ ______

Answer 13

lis pendens

Question 14

A U______ C________ C____ financing statement notifies the public and the title examiner that there is something in the property for which the owner owes money (like a furnace)

Answer 14

Uniform Commercial Code

Question 15

An encumbrance is anything that diminishes the

Examples are liens, mortgages, judgments, lis pendens, easements, encroachments, deed restrictions and zoning ordinances.

Answer 15

value or use of the property

Question 16

The person who is professionally trained to conduct a title search is an ________________.

Her first step is to establish a _____________ that goes back ________ to a ______________.

Then she develops the _______________ which is a condensed history of anything that affects the title

Answer 16

abstractor or title examiner
chain of title
40 years 
warranty deed
abstract of title

Question 17

The title company attorney prepares the

Answer 17

Certificate of Title

Question 18

Any claim that creates a problem and has to be cleared before the title can be transferred is called a _______ on the title

Answer 18

cloud

Question 19

Unlike other types of insurance, title insurance will cover

Answer 19

past mistakes

Question 20

Lender’s title insurance covers the

Answer 20

loan balance

Question 21

Owner’s title insurance is for the

Answer 21

purchase price

Question 22

Voluntary alienation is accomplished with a deed. The owner/seller is the _____ and the buyer is the ______. To convey title, all owners/sellers must sign the ____. Only the grantors sign the deed. Their signatures must be acknowledged by a notary in order for the deed to be recorded at the registry of deeds

Answer 22

grantor
grantee
deed

Question 23

The granting or habendum clause states the ________of the grantor (fee simple absolute, life estate in reversion, etc.).

Answer 23

intention

Question 24

In a warranty deed, the covenant of _____ assures the grantor has the right to sell the property.

The grantor guarantees that there are no undisclosed ____________ in the covenant against encumbrances.

The grantor guarantees that there will be no claims against the title in the covenant of _______________.

The grantor promises to defend title forever in the __________________.

The grantor promises to do anything to defend the title in the covenant of ________________

Answer 24

seisin
encumbrances
quiet enjoyment
covenant of warranty forever
further assurances

Question 25

If a seller does not want to guarantee title back in time, but only for the time of her ownership, she would grant a ________________ deed

Answer 25

Special Warranty

Question 26

A _______________ deed implies ownership and possession, but does not contain any warranties

Answer 26

Bargain and Sale

Question 27

A _____________deed transfers title or releases interest in a property; the owner makes no warranties about the title

Answer 27

Quit Claim

Question 28

A person responsible for the settlement of a decedent’s estate may grant a ___________________ deed

Answer 28

Personal Representative

Question 29

When real estate is given to a person named in a will, it is said to transfer by

Answer 29

devise

Question 30

A person who receives real property when someone dies without a will receives it by

Answer 30

descent

Question 31

Five types of involuntary alienation include:

Answer 31

``` Mortgage foreclosure Eminent domain Tax lien foreclosure Escheat Adverse Possession ```

Question 32

To assert ownership by adverse possession, one must meet five conditions:

Answer 32

``` Continuous and uninterrupted use (for 20 years in most states) Open and notorious use Adverse to the true owner’s possession Hostile Claim of right ```

Question 33

In addition to being transferred by a deed, voluntary alienation may be accomplished by devise, descent, or ________ which occurs when someone gives property to the government.

Answer 33

dedication