Unit 4--Recordation, Title, Insurance, Settlement

Question 1

Fee Simple Defeasible is also called _________.

Answer 1

Qualified Fee

Question 2

T or F: Recording proves the validity of the document.

Answer 2

False

Question 3

Recording documents is a way of giving _________ notice.

Answer 3

Constructive or legal notice–establishes priority of interests “first in time, first in line”

Question 4

Is a deed still valid if NOT recorded?

Answer 4

Yes–but grantee runs the risk of someone else claiming it

Question 5

Most states require documents to be ___________ to be recorded, this confirms the transfer is voluntary and not under duress.

Answer 5

Acknowledged

Question 6

This is a clause in a mortgage/deed of trust in which the lender permits a subsequent mortgage to take or change priority.

Answer 6

Subordination–allows mortgages to maintain their original position

Question 7

Ownership that is free from reasonable doubt is called ___________ title.

Answer 7

Marketable

Question 8

Doing a title search by a title examiner, from original source to present, is called a establishing ______ ___ _________.

Answer 8

Chain of Title

Question 9

A historical summary of all the recorded documents affecting title to a given parcel of land and is created through a title search is an ______________.

Answer 9

Abstract of Title

Question 10

The best method for insuring marketable title is with ______________.

Answer 10

Title Insurance

Question 11

T or F: The title commitment and report will state the current condition of the title and is a commitment to insure.

Answer 11

True–shows current encumbrances but NOT any history of past owners or encumbrances

Question 12

New buyers will receive a standard ________ _________ which protects owners/buyers and their heirs while they have an interest.

Answer 12

Owner’s Poilicy

Question 13

Title insurance policy coverage costs are based on the _______ price of the property

Answer 13

Sale price

Question 14

A _____________ policy protects the mortgagee/lender

Answer 14

Mortgagee/Lender’s policy–coverage is based on the LOAN amount

Question 15

A standard coverage policy protects the buyer/owner against all problems found (before/after) closing

Answer 15

found AFTER closing…it mainly covers Errors in matter of record not listed as exceptions

Question 16

This policy adds protection against problems that are not a matter of public record but would probably be discovered through inspection of the property.

Answer 16

Extended Owner’s coverage–matters of survey, gap period, unrecorded liens

Question 17

The premium for title insurance is paid _________ when the policy is issued at closing.

Answer 17

Once

Question 18

Lis Pendens means __________

Answer 18

Lawsuit pending

Question 19

A court hearing to determine ownership, recognize other valid claims, and “quiet” invalid claims is a _________.

Answer 19

Suit to Quiet Title

Question 20

Chain of title is all __________ __________ from patent to the current title holder.

Answer 20

recorded documents

Question 21

An abstract and title commitment are based upon the _________ ____ ________.

Answer 21

Chain of Title

Question 22

T or F: Real Estate professionals SHOULD call about zoning issues for the buyer.

Answer 22

False–They shouldn’t because they would take on liability for the information to be correct, they should recommend buyers call about zoning and have a property inspection, disclose material facts, and verify any statements appearing false

Question 23

T or F: Sellers are responsible for lead inspection and removal.

Answer 23

False–buyers can waive 10 day inspection period, this is up to the buyer

Question 24

______________ must give a lead based paint disclosure and EPA pamphlet to renters if the property was built before 1978.

Answer 24

Landlords and property managers–renters do NOT have to be given opportunity to test or remove

Question 25

A naturally occuring, odorless, radioactive gas

Answer 25

Radon

Question 26

Radon is typically ___________ by adding a ventilation system to move the gas outside.

Answer 26

Mitigated

Question 27

_________is an odorless gas that is a byproduct of combustion.

Answer 27

CO-carbon monoxide

Question 28

_____________ is created by an excess humidity and moisture.

Answer 28

Toxic mold

Question 29

Mold grows when there is oxygen, moisture, and __________ food source.

Answer 29

Organic

Question 30

The removal of mold, called _________, should be done per EPA and state regulations

Answer 30

Remediation

Question 31

T or F: Sellers are NOT responsible to disclose mold issues.

Answer 31

False--should disclose if there was an issue

Question 32

This is mandatory for government projects and may be required for private development.

Answer 32

EIS--Environmental Impact Statement

Question 33

These properties are those that have been deemed undesirable because of activities that occurred there.

Answer 33

Stigmatized properties(phycological impact)--Suicide, murder, criminal activity, HIV/Aids, State Laws dictate what is disclosed

Question 34

A 3rd party, ________ _________, or disinterested party that assists in carrying out the closing transaction according to the terms of the purchase contract

Answer 34

Escrow agent/title company closer

Question 35

The loan is always a _________to the buyer at closing.

Answer 35

Credit

Question 36

The sales price is a __________ to the seller at closing.

Answer 36

Credit

Question 37

A detailed accounting of each party's debits and credits.

Answer 37

Closing Statement

Question 38

A debit to the buyer __________ the amount of money the buyer must bring to the closing.

Answer 38

Increases

Question 39

Brokerage fees, owner's title insurance, payoff of existing loans and seller financing are all _________ to the seller.

Answer 39

Debits

Question 40

HOA dues, rents, utilities, assumed mortgages, and taxes are all __________ costs as of the date of closing.

Answer 40

Prorated

Question 41

Payments made after the time has passed, buyer credits, are said to be ____________.

Answer 41

in arrears

Question 42

________ _________ are not transferred because the full amount transfers to new owner to hold for the tenant.

Answer 42

security deposits

Question 43

The document summarizing all recorded interests affecting title to a given parcel of land

Answer 43

Abstract of Title

Question 44

If you dont ABATE asbestos, the best way to deal with it is _____________.

Answer 44

Encapsulation

Question 45

A defect or problem not covered by standard or extended title insurance is an __________.

Answer 45

Exception