RE Unit 4 Quiz Flashcards
A chain of title is
a. a form of land measurement used by surveyors on plat maps.
b. a form of title insurance resulting in a strong guarantee.
c. an encumbrance on title which may prohibit sale of the land.
d. a chain of successive conveyances and recorded interests.
d. The chain of title links the present owner to all previous owners of the property.
Legal action taken on a title claimant’s behalf to resolve all clouds on title is known as a
a. suit for damages.
b. foreclosure suit.
c. quiet title suit.
d. partition suit.
c. Clouds are removed from title in a quiet title suit.
Which of the following is true concerning the recording of documents?
a. All real estate documents must be recorded to be valid.
b. Recording real estate documents provides constructive notice of their contents to the world.
c. Recording real estate documents provides actual notice of their contents to the world.
d. To be recorded, real estate documents must first be registered with the court.
b. Not all real estate documents have to be recorded to be valid (for example, an unrecorded deed can transfer title to the grantee). Recording provides constructive notice of the contents of a document to the public at large.
The requirements for recording are determined by
a. the county clerk.
b. title insurance companies.
c. state law.
d. federal law.
c. Recording requirements are set by state statutes (laws).
A lender making a loan secured by a mortgage will probably require the borrower to buy
a. a mortgagee’s title insurance policy.
b. a mortgagor’s title insurance policy.
c. an owner’s title insurance policy.
d. mortgage insurance.
a. To protect their interests, lenders generally require a borrower to purchase a mortgagee’s title insurance policy (also called a lender’s policy or a loan policy).
Standard coverage title insurance would protect against all of the following EXCEPT
a. a forged deed.
b. encroachments.
c. errors in the public record.
d. errors in the abstract.
b. Standard coverage title insurance does not protect against claims involving surveys or encroachments, or other problems that would only be discovered in an inspection of the property.
An abstract of title would usually be examined by the
a. broker.
b. attorney for the seller.
c. mortgagee.
d. attorney for the buyer.
d. The buyer will hire an attorney to examine the abstract, or else will purchase title insurance.
Which of the following would benefit most from, and therefore be most concerned with, recording a mortgage?
a. The title insurance company
b. The grantor
c. The mortgagor
d. The mortgagee
d. The mortgagee (lender) wants to make certain that the mortgage is recorded, to provide notice of the mortgagee’s lien against the property.
A mortgagee’s title insurance policy protects the
a. lender.
b. borrower.
c. vendor.
d. grantee.
a. A lender (mortgagee) requires the borrower to purchase a mortgagee’s title insurance policy to protect the lender’s security interest in the property.
A second mortgage can be distinguished from a first mortgage by
a. the face amount of the mortgage.
b. the date the mortgage was given.
c. the date the mortgage was recorded.
d. the date the mortgage was delivered and accepted.
c. Priority of rights is determined by the date of public notice. The most accepted form of public notice is document recordation.
In most cases, in order for a deed to be recorded it must be
a. acknowledged.
b. signed by the Grantee.
c. valid.
d. signed by both the Grantor and Grantee.
a. Deeds need to be acknowledged by the grantor(s) to be recorded.
A deed that has not been recorded cannot provide
a. competent parties.
b. constructive notice.
c. actual notice.
d. an essential element.
b. A deed that has not been recorded lacks constructive notice also known as legal notice.
Title insurance premiums are paid
a. once, at the time the policy is issued.
b. monthly, with the mortgage payment.
c. semiannually, along with the property taxes.
d. annually, along with the homeowner’s insurance premium.
a. Title insurance policies protect against title flaws that already exist but are as yet undiscovered. Therefore the title company charges only one premium, which is typically paid at closing.
Harding is planning to purchase a house from Quinn. Which of the following would give Harding the most protection against losses resulting from title defects?
a. Mortgage default insurance
b. An owner’s title insurance policy
c. A mortgagee’s title insurance policy
d. An abstract of title
b. The best protection for a property buyer comes in the form of an owner’s title insurance policy.
When Alsop recorded the deed she received from Barber, the legal consequence of the recording was to
a. transfer title.
b. give Barber assurance of holding a first lien.
c. serve constructive notice of Alsop’s ownership interest.
d. protect Barber from existing adverse claims.
c. Recording serves constructive notice (also called legal notice) of interests in real property.
