Chapter 4

Question 1

Words of Conveyance

Answer 1

Wording in a deed demonstrating the definite intention to convey a particular title to real property to a named grantee.

Question 2

Will

Answer 2

The legal instrument to dispose of a descendant’s property according to his or her instructions. See devise, bequest.

Question 3

Township

Answer 3

A unit pertaining to the Government Rectangular Survey System that measures six miles square and is divided into 36 equal parcels that are 1 mile. square - called sections.

Question 4

Title Insurance

Answer 4

An insurance policy protecting the insured from a financial loss caused by a defect in a title to real property.

Question 5

Title Examination

Answer 5

A search of the public record to determine the quality of a title to real property.

Question 6

Testate & Testator & Testatrix

Answer 6

Testate: To have died leaving a valid will.
Testator: A man who has died and left a valid will.
Testatrix: A woman who has died and left a valid will.

Question 7

Suit to Quiet Title

Answer 7

A suit brought before the court to eliminate a cloud on a title or to establish title (ie., in an adverse possession claim).

Question 8

Statute of Frauds

Answer 8

A law in effect in all states requiring certain contracts to be in writing to be valid.

Question 9

Special Warranty Deed

Answer 9

A deed containing a limited warranty of title limited to the time the seller owned the property.

Question 10

Section

Answer 10

An area of land described by the rectangular survey system consists of 640 acres and being 1 mile square.

Question 11

Point of Beginning

Answer 11

A reasonably easy-to-locate point tied to a well-established reference point from which a surveyor begins the metes and bounds description. After sighting all distances and directions of the perimeter of the property, the description must close, that is, return to the point of beginning.

Question 12

Plat

Answer 12

A property map.

Question 13

Meridians

Answer 13

The country is divided by North-South lines called principal meridians and by east-west lines called base lines.

Question 14

Marketable Title Act

Answer 14

North Carolina legislation designed to extinguish old defects in the title by providing that when a chain of title cannot be established for 30 years without conflicts, claims outside this chain are extinguished. This Act has exceptions.

Question 15

Lien Foreclosure Sale

Answer 15

A sale of real property at public auction to satisfy a specific or general lien against the property. These sales do not have the consent of the owner/debtor and title is typically conveyed by trustees deed.

Question 16

Legal Description

Answer 16

A description of land recognized by law.

Question 17

Judicial Deed

Answer 17

One executed by an official with court authorization.

Question 18

Intestate

Answer 18

A person who has died without leaving a valid will.

Question 19

Grantee & Grantor

Answer 19

Grantee: One who receives title to real property by deed.

Grantor: One who conveys title to real property by deed.

Question 20

Government Rectangular Survey System

Answer 20

A type of land description by township and sections.

Question 21

Foreclosure

Answer 21

The legal procedure in which the lender sells the collateral in order to pay off the existing loan in the event of default by the borrower. The process used to terminate the borrower’s equity, or right, of redemption.

Question 22

Executor & Executrix

Answer 22

Executor: A man appointed in a will to see that the terms of the will are carried out.

Executrix: A woman appointed in a will to see that the terms of the will are carried out.

Question 23

Excise Tax

Answer 23

A state tax that a grantor must affix to a deed. It provides a rough indication of purchase price and is a valuable data source for the broker’s records. Also known as revenue stamps.

Question 24

Eminent Domain

Answer 24

The power of government to take private property for public use.

Question 25

Devise & Devisee

Answer 25

Devise: A gift of real property by will. Devisee: The recipient of a gift of real property by will.

Question 26

Descent

Answer 26

The distribution of property of one who has died intestate to legally qualified heirs.

Question 27

Covenant Against Encumbrances

Answer 27

This covenant typically states, "that said premises are free from encumbrances with the exceptions below stated, if any: The grantor is assuring the grantee that there are no encumbrances against the title except those of record.

Question 28

Constructive Notice

Answer 28

The notice of a fact on the public record that is considered to be known to everyone, even though he or she has not actually been notified of such fact. Everyone is bound by this knowledge.

Question 29

Conner Act

Answer 29

Requires certain documents (eg., deeds, purchase contracts, and leases over three years) to be recorded to be enforceable against third parties.

Question 30

Color of Title

Answer 30

A defective claim to a title.

Question 31

Coud on a Title

Answer 31

A claim against a title to real property.

Question 32

Chain of Title

Answer 32

The successive conveyances of title to a particular parcel of land.

Question 33

Bounds

Answer 33

Bounds are the directions from one point to another in the description.

Question 34

Bequest

Answer 34

A gift of personal property by will.

Question 35

Beneficiary

Answer 35

The recipient of a gift of personal property by will. The lender in a deed of trust.

Question 36

Adverse Possession

Answer 36

A method of acquiring title to real property by conforming to statutory requirement. A form of involuntary alienation of title.

Question 37

Acknowledgment

Answer 37

A formal statement before an authorized official (eg., notary public) by a person who executed a deed, contract, or other document that it was (is) his or her free act.