Real Estate Course Chapter 9 Flashcards Preview

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Flashcards in Real Estate Course Chapter 9 Deck (84):
1

A person who holds vested ownership rights in property is said to have

Title

2

What is a deed

a written instrument used to convey an interest in real property. It conveys legal title

3

A transfer of title from any level of government to a private party is called a

Public Grant

4

a voluntary transfer of title from one private party to another private party is called a

Private Grant

5

title to real property is a legal concept signifying ...

ownership of the collection of rights called an estate

6

What is Equitable title

beneficial interest in real estate that implies that an individual will receive legal title at a future date

7

What is Alienation

the act of transferring ownership, title, or an interest in real property from one person to another. It can be voluntary or involuntary.

8

Is a Will an example of Voluntary Alienation?

Yes

9

To die testate or intestate indicates ...

The Decedent prepared a Will before death
or did not.

10

If the Decedant in a Will was a male he is considered the ...

Testator

11

If the Decedant in a Will was a female he is considered the ...

Testatrix

12

In a Will, a gift of REAL property is a ________ and the recipient of the gift is the _________.

Devise
Devisee

13

In a Will, a gift of PERSONAL property is a ________ and the recipient of the gift is the _________.

Bequest
Beneficiary

14

What is meant by the term "Escheat"

Escheat provides for a government, normally a state government, to take the property of an owner who dies intestate and without any known heirs entitled to receive the property.

15

Adverse possession arises when ...

the true owner of record fails to maintain possession and the property is seized by another

16

What are the conditions for Adverse Possession?

H - Hostile possession of Property
O - Open Possession with no attempt to conceal occupancy
T - Taxes were paid during all years the adverse possessor was on the property
C - Claim of title, even an imperfect one exists
A - Adverse possession must continue for 7 or more consecutive years
N - Notorious and flagrant public possession of property

17

What is Eminent Domain

Referred to as a "taking for just compensation." It gives government the right to take land from an owner through a legal process referred to as condemnation, as long as the taking is for a public purpose

18

With respect to notice their are two types of notice that have legal priority. They are

Actual notice and Constructive notice.

19

What is actual notice

Actual notice is direct knowledge acquired in the course of a transaction

20

What is constructive notice

Constructive notice (or legal notice) is accomplished by recording the information in the public records.

21

What is a chain of title

Complete successive record of a property's ownership

22

What is a Lis Pendens

A notice recorded in the public records of a pending legal action that involves real estate

23

What is a suit to quiet title

It is a court action resulting from a gap in the chain of title to determine ownership.

24

What is an abstract of title

A summary report of what the title search found in the public record. A official summary of documents filed in the public records that affect, or may affect, title of a given tract or parcel.

25

State statute determines how far back into history the search must go. Florida's Marketable Record Titles Act limits the search to

30 years

26

What is the root of title

the original source of title going as back 30 years

27

Are Real Estate agent qualified to enter an opinion on title

NO

28

What are the two types of Title Insurance

Owners policy and Lenders Policy

29

In Title insurance, which policy is transferable, the Owners policy or Lenders?

Lenders. Will protect the new lender up to the balance of the loan

30

Who is the grantor and grantee

Grantor (owner giving title) Grantee (new owner receiving title)

31

Certain elements must be present in a deed to spell out clearly the necessary intent and the property to which it applies. They are...

C - Consideration (valuable or good)
E - Execution (signed by a competent grantor/2
witnesses.
D - Description of property
D - Delivery and acceptance
I - Interest or estate being conveyed (habendum
clause)
N - Names of a grantee and grantor
G - Granting and other appropriate clauses

32

What is the PREMISES section of a deed?

names the parties to the deed and the date of the deed

33

What is the Habendum clause

the habendum clause starts with the words "to have and to hold." Then, usually, the word "forever" follows if the estate is fee simple or the words "for the life of the grantee" if it is a life estate

34

What is the covenant of seisin (seizin)?

On the deed. It is a promise that the grantor owns the property and has the right to convey title

35

What is the covenant against encumbrances?

states that the property is free from liens or other encumbrances except as noted in the deed. This clause gives the grantee notice of all encumbrances (liens, restrictions, and so forth) associated with the property

36

There are four types of statutory deeds. They are...

(1) quitclaim deed, (2) bargain and sale deed, (3) special warranty deed, and (4) general warranty deed

37

What is a Personal representative's deed?

A personal representative is an individual either appointed by will or by order of a court to settle the estate of a deceased person.

38

What is a Guardian's deed?

A guardian acts on behalf of a minor (or other ward) and is also a fiduciary

39

What is a Committee's deed?

One of the essentials of a valid deed is a competent grantor. When an owner is declared legally incompetent or is committed to an institution, a committee is often appointed by the court to administer the affairs of the incompetent

40

Name the 3 Special Purposes deeds?

Personal representative, Guardian, and Committee

41

The three most important subcategories of public or governmental limitations on ownership of real property are:

PET (1) police power, (2) eminent domain, and (3) right of taxation

42

Private limitations on ownership of real property usually include

DELL deed restrictions, easements, leases, and liens.

43

What is an easement?

An easement is a right to use a portion of an owner's land for a specific purpose

44

What is an Easement appurtenant?

An easement appurtenant allows an owner the use of a neighbor's property, such as the right to cross parcel A to reach parcel B

45

What is an Easement in gross?

This type of easement benefits an individual or a business entity and is not related to a specific adjacent parcel

46

What is an Easement by necessity?

If a landowner subdivides land, conveying part of it in a way that causes a parcel to be landlocked, the court may authorize creation of an easement by necessity to allow property owners to enter and exit their landlocked pro

47

What is an Easement by prescription?

This type of easement is created by longtime usage. Such easements are created and must be recognized after 20 years of open, continuous, uninterrupted use

48

What is an encroachment?

the unauthorized use of another's property

49

What is a lease?

an agreement between the landlord (lessor) and a renter (lessee) that grants the lessee the right of possession and use of the property for a specified time in return for compensation.

50

What is a lien?

A lien is a right or legal interest given to a creditor or a unit of government to have a debt satisfied out of some specific property belonging to a debtor

51

Is a lien an encumbrance on the title to real property?

Yes. However, not all encumbrances on property are liens. Encumbrances can also be easements, covenants, deed restrictions, encroachments, and governmental regulations.

52

Liens are classified as ...

Voluntary or involuntary. General or Specific

53

Is a general lien restricted to one property?

NO. It may affect all properties of a debtor. A general lien attaches to all of the lienee's (debtor's) real property located in the county where the lien is recorded. Example: tax liens, judgement liens

54

How do specific liens differ from general liens?

Liens classified as specific do not affect all of the debtor's property but apply only to certain specified property. Lien types: Property tax, mortgage,etc

55

The priority of liens may be changed by a written agreement known as ...

a subordination agreement. Under a subordination agreement, the holder of a prior lien (lien with an earlier recording date) agrees to allow a junior lien holder's interest to move ahead of the prior lien.

56

Adverse possession arises when the true owner of record fails to maintain possession and the property is seized by another

TRUE

57

Constructive notice is direct knowledge acquired in the course of a transaction

FALSE

58

The covenant of quiet enjoyment is found in a general warranty deed.

TRUE

59

A broker must first obtain a current opinion from an attorney before quoting an opinion that title to a property is good or marketable

The statement is TRUE. When questions of title arise, brokers are required to advise prospective buyers to have their attorney examine the abstract or to obtain a title insurance policy

60

Title insurance will NOT protect an owner's heirs.

The statement is FALSE. The owner's title insurance policy helps to protect a new owner (and the owner's heirs) from title defects.

61

Which requirement does NOT have to be accomplished before a deed can be recorded?

A)Three witnesses
B)Acknowledgment
C)Notarized
D)Signature

A) Three witnesses (you only need two)

62

Which type of lien is a specific lien?

A)Income tax
B)Estate tax
C)Vendor's
D)Judgment

c) vendors

63

Which restriction is always a public restriction?

A)Restrictive covenants
B)Lease by a government agency
C)Easement
D)Eminent domain

D) EMINENT DOMAIN

64

A lease that provides for the lessee to pay a fixed rent plus some of the property's costs is which type of lease?

A)Net
B)Gross
C)Percentage
D)Variable

A) Net

65

A tenant has six months remaining on her lease. The tenant assigns two of the remaining months to another person to use the property while she is on vacation in Europe. What is this called?

A)Variable lease
B)Partial lease
C)Sublease
D)Assignment

c) sublease

66

Which element is NOT an essential element of a deed?

A)Granting clause
B)Voluntary delivery and acceptance
C)Signed by a competent grantee
D)Legal description

The answer is SIGNED BY A COMPETENT GRANTEE. The deed must be signed by a competent grantor (not grantee).

67

Which clause in a deed contains the necessary words to convey title?

A)Premises
B)Seizin
C)Habendum
D)Granting

D) Granting

68

Which type of deed is used when an individual is appointed by order of a court to settle the estate of a deceased individual?

A)Quitclaim
B)Special warranty
C)Committee
D)Personal representative

D)Personal representative

69

A single person dies without a will. After a period of time, the state of Florida obtained title to the property of the deceased person. What power entitled the state government to acquire the deceased person's property?

Escheat

70

A husband and wife have title to a property in both names. Which action is required to convey the title to the property?

A)Signed by the grantee
B)Signed by the husband and wife
C)Recorded
D)Notarized

B)Signed by the husband and wife

71

Which type of title insurance policy is transferable?

A)Owner
B)Mortgagee
C)Vendor
D)Mortgagor

B)Mortgagee

72

Utility easements are generally which type of easement?

A)Appurtenant
B)Necessity
C)Prescription
D)In gross

D)In gross

73

Which type of notice is accomplished by recording in the public records?

A)Certified
B)Actual
C)Legal
D)Sealed

C) Legal

74

In which type of deed does the grantor warrant to defend the title solely against acts by the grantor or the grantor's representative?

A)Bargain and sale
B)Quitclaim
C)General warranty
D)Special warranty

The answer is SPECIAL WARRANTY. In a special warranty deed, the grantor does not assume responsibility for the title in any way except against the acts by the grantor or the grantor's representative.

75

Which type of deed provides a new owner with the BEST protections?

A)Bargain and sale
B)Special warranty
C)Quitclaim
D)General warranty

D)General warranty

76

The priority of liens may be changed by which written agreement?

A)Subordination
B)Lis pendens
C)Satisfaction
D)Novation

A)Subordination

77

A city wants to acquire land for a fair price for the purpose of building a new interstate ramp. The land is acquired through which legal process?

A)Escheat
B)Adverse possession
C)Foreclosure
D)Condemnation

D)Condemnation

78

Which type of deed is used to clear title defects?

A)Special warranty
B)General warranty
C)Bargain and sale
D)Quitclaim

D)Quitclaim

79

Which type of lease is based on income from the tenant business?

A)Variable
B)Net
C)Gross
D)Percentage

D)Percentage

80

Which alienation is voluntary?

A)Escheat
B)Descent
C)Eminent domain
D)Will

D)Will

81

Which encumbrance is NOT a lien?

A)Judgment
B)Easement
C)Mortgage
D)Construction

B)Easement

82

Which term describes an instrument that is filed to give notice of pending legal action involving a parcel of real estate?

A)Escheat
B)Judgment
C)Lis pendens
D)Divorce decree

C)Lis pendens

83

Which promise is unique to a general warranty deed?

A)Habendum clause
B)Promise of seisin
C)Promise to pay
D)Further assurance

The answer is D) FURTHER ASSURANCE. A general warranty deed contains three unique promises: (1) quiet enjoyment; (2) further assurance; and (3) warranty forever.

83

If a sales contract does not specify the type of deed, Florida law requires that the property be conveyed by what type of deed?

General warranty deed