Kelly Cards- Clearing Title

Question 1

Oil and gas leases, pipeline agreements or anything else related to the sale of oil and gas is an exception that only appears on which policy

Answer 1

Loan Policy

Question 2

What is listed in Schedule B of an Owner’s Policy?

Answer 2

Final exceptions which could NOT be removed

Question 3

Type of exception that is discovered upon examination of that piece of real estate to be insured as affecting its title

Answer 3

Specific Exceptions

Question 4

Type of exception that is common and usually used on each policy and not usually found in public record (could differ state by state)

Answer 4

Standard or General Exceptions

Question 5

Examples of Specific Exceptions

Answer 5

mortgages, liens, easements, set back lines, restrictions, current real estate taxes not yet due and payable

Question 6

A charge or interest in the property to secure payment of a debt or performance of an obligation or duty

Answer 6

Lien

Question 7

What are the two types of liens

Answer 7

Voluntary and Involuntary Liens

Question 8

Type of lien that is created by the actions of and with the cooperation of the debtor

Answer 8

Voluntary Lien (ex: mortgages, leases, etc)

Question 9

Type of lien that is created by a creditor without the cooperation of the debtor

Answer 9

Involuntary Lien (ex: federal, state, private, tax liens, etc)

Question 10

How does a lien holder enforce a lien?

Answer 10

Through foreclosure or other involuntary sale

Question 11

Length of time a federal tax lien is good for?

Answer 11

Valid for 10 years and 30 days from the date of assessment

Question 12

Length of time a federal judgement lien is good for?

Answer 12

Valid for 20 years and is renewable

Question 13

Length of time a private judgement lien is good for?

Answer 13

Valid for 5 years from the date of the judgement or date of issuance of the last execution (whichever is later)

Question 14

Length of time a mechanics lien is good for?

Answer 14

6 years from the date of judgement (this is considered a private lien but is the exception to the standard 5 years for private)

Question 15

Length of time a State of Ohio Judgement is good for?

Answer 15

Valid for 15 years from the date of issuance

Question 16

What is another word for riparian?

Answer 16

Water rights

Question 17

The gradual deposit of solid material by water so as to create dry land

Answer 17

Accretion
(page 159 -

Question 18

What happens when a mineral estate is severed from the surface estate?

Answer 18

It creates a separate chain of title of ownership of the mineral estate

Question 19

An insolvent party may seek relief when debts exceed assets

Answer 19

bankruptcy

Question 20

What is an automatic stay in bakruptcy?

Answer 20

No other liens can be attached to the property while under court protection

Question 21

What are the two main issues that probate handles?

Answer 21

Decedent’s estates and guardianships

Question 22

When a person dies without a will?

Answer 22

Intestate

Question 23

When a person dies with a will?

Answer 23

Testate

Question 24

What are the 4 ways to clear title?

Answer 24

Release, Assignment, Subordination, Affidavit
(page 166-167

Question 25

Can an affidavit act as an instrument of conveyance alone?

Answer 25

No

Question 26

Document that explains a discrepancy in a title chain

Answer 26

Affidavit of Facts in aid of title

Question 27

What does RESPA stand for

Answer 27

Real Estate Settlement Procedures Act
(consumer protection statute)

Question 28

What is the purpose of RESPA and when did the law pass?

Answer 28

1. help consumers become better shoppers for escrow services
2. to eliminate kickbacks and referral fees that can increase escrow service costs
3. Passed in 1974

Question 29

What does section 8 of RESPA explain? (page 168)

Answer 29

It is prohibited to give or accept any fee, kickback or something of value in exchange for their use of settlement services

Question 30

In order to have a legal joint venture and comply with RESPA guidelines, what steps must the agent take in regards to the client?

Answer 30

1. Consumer must receive a disclosure of the nature of the relationship and estimated charges
2. Consumer must be made aware they are not required to use this business
   3.The only thing of value is a return on the ownership interest (not someone taking you out for an evening in exchange for services)