Unit 6 Exam

Question 1

A deed states that the grantors are conveying all their rights and interests to the grantees to have and to hold. This is communicated in

A)
the restriction clause.
B)
the covenant of seisin.
C)
the habendum clause.
D)
the acknowledgment clause.
Explanation
The answer is the habendum clause. The habendum clause defines or explains the ownership to be enjoyed by the grantee, and its provisions must agree with those stated in the granting clause. The habendum clause begins with the words to have and to hold.

Answer 1

C)

the habendum clause.

Question 2

Question #2 of 35
Question ID: 938052
All of these are reasons for probate EXCEPT

A)
to confirm that the will is valid.
B)
to ensure that the heirs do not fight among themselves.
C)
to determine the exact assets of the deceased person.
D)
to identify which persons get any of the estate.
Explanation
The answer is to ensure that the heirs do not fight among themselves. Preventing fights among heirs is not the reason for probate.

Answer 2

B)

to ensure that the heirs do not fight among themselves.

Question 3

Question #3 of 35
Question ID: 936106
Eminent domain and escheat are two examples of

A)
adverse possession.
B)
transfers of title by descent.
C)
voluntary alienation.
D)
involuntary alienation.
Explanation
The answer is involuntary alienation. The right of eminent domain allows a government entity to compel the transfer of a property to that entity for a price set by court process—condemnation. This transfer of title (alienation) is forced and so is involuntary. When a person dies without a will (intestate) and without heirs, the property passes (escheats) to the state. This process was neither planned nor initiated by the owner before death and so is classified as involuntary.

Answer 3

D)

involuntary alienation.

Question 4

Question #4 of 35
Question ID: 938024
The reversion of real estate to the state because of the lack of an heir or other person legally entitled to own the property is called

A)
escheat.
B)
estoppel.
C)
eminent domain.
D)
attachment.
Explanation
The answer is escheat. When a person dies intestate and no heir can be located, title to the real estate passes to the state by the state's power of escheat and is an involuntary alienation.

Answer 4

A)

escheat.

Question 5

Question #5 of 35
Question ID: 878620
Any limitations or reservations that a grantor intends to make part of a conveyance of real estate should be

A)
noted in a separate document that is conveyed with the deed.
B)
noted in the deed by the phrase “with certain reservations.”
C)
included in the deed.
D)
included in a document that is delivered to the grantee before issuance of the deed.
Explanation
The answer is included in the deed. And limitations, exceptions, or reservations that the grantor intends to make must be specifically noted in the deed.

Answer 5

C)

included in the deed.

Question 6

Question #6 of 35
Question ID: 453166
Title to real estate means the right to or ownership of the land and represents the owner’s

A)
barrel of legal rights but in itself does not serve as evidence of ownership.
B)
bundle of legal rights and also serves as evidence of ownership.
C)
barrel of legal rights and also serves as evidence of ownership.
D)
bundle of legal rights but in itself does not serve as evidence of ownership.
Explanation
The answer is bundle of legal rights and also serves as evidence of ownership. Title to real estate means the right to or ownership of the land and represents the owner’s bundle of legal rights and also serves as evidence of ownership.

Answer 6

B)

bundle of legal rights and also serves as evidence of ownership.

Question 7

Question #7 of 35
Question ID: 775395
Where is it necessary to define or explain in the deed the ownership to be enjoyed by the grantee?

A)
Legal description
B)
Exceptions and reservations
C)
Habendum clause
D)
Considerations
Explanation
The answer is habendum clause. A habendum clause may follow the granting clause. The habendum clause begins with the words "to have and to hold."

Answer 7

C)

Habendum clause

Question 8

Question #8 of 35
Question ID: 972055
A bargain and sale deed contains how many express warranties?

A)
5
B)
3
C)
2
D)
0
Explanation
The answer is 0. A bargain and sale deed contains no express warranties against encumbrances; however, it does imply that the grantor holds title and possession of the property.

Answer 8

The answer is 0.

Question 9

Question #9 of 35
Question ID: 785064
All of the following are associated with adverse possession EXCEPT

A)
hostile.
B)
adverse.
C)
open.
D)
off and on for the last five years.
Explanation
The answer is off and on for the last five years. The law recognizes that the use of land is an important function of its ownership. The statutory periods range from as few as 5 years in some states to as many as 30 years in others.

Answer 9

D)

off and on for the last five years.

Question 10

Question #10 of 35
Question ID: 938007
The document used to convey ownership to real property is

A)
a promissory note.
B)
an abstract and title opinion.
C)
a quitclaim deed.
D)
a title policy.
Explanation
The answer is a quitclaim deed. Deeds transfer real property. Both a title policy and abstract with title opinion are used to verify and protect against defects of title.

Answer 10

C)

a quitclaim deed.

Question 11

Question #11 of 35
Question ID: 938044
Which of these is a guarantee that the grantor has the right to convey the property?

A)
Covenant of quiet enjoyment
B)
Covenant of further assurance
C)
Covenant against encumbrances
D)
Covenant of seisin
Explanation
The answer is covenant of seisin. The covenant against encumbrances is a warranty that the property is free from encumbrances, except as so noted. The grantor further assures that everything will be done to make the title good. Quiet enjoyment guarantees that the title will be good against third parties who might try to bring legal action to gain the property.

Answer 11

D)

Covenant of seisin

Question 12

Question #12 of 35
Question ID: 785053
All of the following are true of the holder of a fee simple absolute estate EXCEPT

A)
the holder has the maximum estate available in land.
B)
the holder can transfer rights to others.
C)
the estate terminates upon death.
D)
the holder has maximum control over the property.
Explanation
The answer is the estate terminates upon death. Fee simple absolute estates potentially last forever.

Answer 12

C)

the estate terminates upon death.

Question 13

Question #13 of 35
Question ID: 936101
Under the covenant of quiet enjoyment, a grantor

A)
warrants that the property is free from liens and encumbrances.
B)
warrants that he or she is the owner and has the right to convey title to the property.
C)
ensures that the title will be good against the title claims of third parties.
D)
promises to obtain and deliver any instrument needed to make the title good.
Explanation
The answer is ensures that the title will be good against the title claims of third parties. Quiet enjoyment means freedom from claims of third parties—persons other than grantor and grantee.

Answer 13

C)

ensures that the title will be good against the title claims of third parties.

Question 14

Question #14 of 35
Question ID: 938021
The document that acts as security for a promissory note is

A)
a conveyance deed.
B)
a general warranty deed.
C)
a quitclaim deed.
D)
a deed of trust.
Explanation
The answer is a deed of trust. A deed of trust conveys title to a trustee, who holds it as security for a promissory note. Conveyance or grant deeds, such as a general warranty or quitclaim, transfer title to property.

Answer 14

D)

a deed of trust.

Question 15

Question #15 of 35
Question ID: 785082
A feature of holding title as joint tenants is that

A)
there is no right of survivorship.
B)
owners can have unequal interests.
C)
it requires equal sharing of rent payments.
D)
upon death the title transfers without going through probate.
Explanation
The answer is upon death the title transfers without going through probate. The right of survivorship is transferred without a will or the process of probate.

Answer 15

D)

upon death the title transfers without going through probate.

Question 16

Question #16 of 35
Question ID: 785074
Conveyance of title occurs the moment a deed is

A)
signed by the grantee.
B)
signed by the grantor.
C)
recorded.
D)
delivered and accepted.
Explanation
The answer is delivered and accepted. Delivery by the grantor and acceptance by the grantee defines the moment of conveyance.

Answer 16

D)

delivered and accepted.

Question 17

Question #17 of 35
Question ID: 878619
What is the purpose of probate?

A)
Distribute all assets correctly
B)
All of these
C)
Satisfy the decedent’s debts
D)
Account for all assets that exist
Explanation
The answer is all of these. The purpose of probate is to see that the assets are distributed correctly, that all assets are accounted for, and that the decedent's debts are satisfied.

Answer 17

B)

All of these

Question 18

Question #18 of 35
Question ID: 775424
The possession of property by an adverse possession claimant must be

A)
open.
B)
all of these.
C)
hostile.
D)
notorious.
Explanation
The answer is all of these. The possession by the claimant must be open (obvious to anyone who looks), notorious (known by others), continuous (uninterrupted), hostile (without the true owner's consent), and adverse (to the true owner's possession).

Answer 18

B)

all of these.

Question 19

Question #19 of 35
Question ID: 936098
A 15-year-old recently inherited a parcel of real estate and has decided to sell it. If the 15-year-old executes a deed conveying the property to a purchaser, such a conveyance would be

A)
voidable.
B)
valid.
C)
invalid.
D)
void.
Explanation
The answer is voidable. Real estate contracts entered into by minors are generally voidable by the minor until the minor reaches the age of majority—18 in most states—or shortly thereafter.

Answer 19

A)

voidable.

Question 20

Question #20 of 35
Question ID: 936107
A deed contains a promise that the title conveyed is good and a promise to obtain and deliver any documents necessary to ensure good title. This deed contains an example of which covenant?

A)
Warranty forever
B)
Further assurances
C)
Quiet enjoyment
D)
Seisin
Explanation
The answer is further assurances. Any promise to obtain documents to make the title good is the covenant of further assurance. The covenants of quiet enjoyment, seisin, and warranty forever are not addressed.

Answer 20

B)

Further assurances

Question 21

Question #21 of 35
Question ID: 938000
The words of conveyance are found in which clause?

A)
Reservations clause
B)
Acceleration clause
C)
Habendum clause
D)
Granting clause
Explanation
The answer is granting clause. For a deed to be valid, it must contain words of conveyance, which are in the granting clause.

Answer 21

D)

Granting clause

Question 22

Question #22 of 35
Question ID: 938017
In MOST states, a written will must be signed by its testator

A)
in the presence of an attorney.
B)
before two or more witnesses, who must also sign the document.
C)
before the clerk of the probate court.
D)
according to the state’s law of descent and distribution.
Explanation
The answer is before two or more witnesses, who must also sign the document.

Answer 22

B)

before two or more witnesses, who must also sign the document.

Question 23

Under state law, one-half of an intestate decedent’s property goes to the decedent’s spouse, one- fourth is divided equally among the decedent’s children, and one-fourth goes to the state. If there is no spouse, the children divide three-fourths equally. A citizen of this state dies intestate, survived by an ex-spouse and seven adult children. If the estate is $865,550, how much will each child receive under state law?

A)
$0
B)
$92,737.50
C)
$123,650.00
D)
$61,825.25
Explanation
The answer is $92,737.50. The ex-spouse gets nothing. The state gets one-fourth and the remaining three-fourths will be divided equally among the seven children: $865,550 ÷ 4 = $216,387.50 to the state. The remaining amount, $649,162.50, is divided seven ways, leaving $92,737.50 per child.

Answer 23

B)

$92,737.50

Question 24

Question #24 of 35
Question ID: 785085
Which of the following is FALSE about probate?

A)
The laws of probate are set at the national level.
B)
None of these.
C)
Tenancy in entirety passes without probate.
D)
Estate taxes must be paid before distribution.
Explanation
The answer is the laws of probate are set at the national level. Estate taxes must be paid before any distribution. The laws of each state govern the probate proceedings. Property held in tenancy by the entirety passes immediately.

Answer 24

A)

The laws of probate are set at the national level.

Question 25

Question #25 of 35 Question ID: 441394 An owner of real estate was declared legally incompetent and was committed to a state mental institution. While institutionalized, the owner wrote and executed a will. The owner died while still institutionalized and was survived by a spouse and three children. The real estate will pass ``` A) to the state. B) to the heirs mentioned in the owner's will. C) according to the state laws of descent. D) to the owner's spouse. Explanation The answer is according to the state laws of descent. A requirement for a valid will is mental competency of the testator at the time of writing the will. Because of mental incompetence, the owner in question died without a valid will. Consequently, the property will pass to people chosen by state law (statute) to receive property when a decedent has no will (dies intestate). ```

Answer 25

C) | according to the state laws of descent.

Question 26

Question #26 of 35 Question ID: 938005 A property owner who dies testate can transfer title to real estate upon death through which type of document? ``` A) Warranty deed B) Quitclaim deed C) Special warranty deed D) Will Explanation The answer is will. A will is made by an owner to convey title to real property after the owner's death. ```

Answer 26

D) | Will

Question 27

Question #27 of 35 Question ID: 453172 An individual who makes a claim to certain property, takes possession of it, and most important, uses it, and takes title away from an owner who fails to use or inspect the property for a period of years A) has committed theft. B) must notify the owner in writing before claiming such title. C) has acquired the title through adverse possession. D) must be related to the true owner. Explanation The answer is has acquired the title through adverse possession. An individual who makes a claim to certain property, takes possession of it and, most important, uses it, and takes title away from an owner who fails to use or inspect the property for a period of years has acquired the title through the principle of adverse possession.

Answer 27

C) | has acquired the title through adverse possession.

Question 28

Question #28 of 35 Question ID: 937999 A person who has died with a will has died ``` A) in valid conveyance. B) testate. C) intestate. D) under the acknowledgment clause. Explanation The answer is testate. A person who has died testate has prepared a will indicating how the deceased's property should be disposed of. ```

Answer 28

B) | testate.

Question 29

Question #29 of 35 Question ID: 938015 An important feature of adverse possession is that the individual who intends to make a claim to property owned by someone else must A) use the property. B) post a notice of ownership on the property. C) publish a note of claim in a newspaper of general circulation in the state in which the property is located. D) keep the claim a secret until the claim has ripened for the number of years required by state law. Explanation The answer is use the property. The claimant's property use must be open, notorious, continuous, hostile, and adverse to the true owner's right of possession for the statutory period.

Answer 29

A) | use the property.

Question 30

Question #30 of 35 Question ID: 938002 Probate is a formal judicial process that does all of the following EXCEPT A) see that assets are distributed correctly, but only if the deceased was unmarried. B) identifies the people to whom the assets are to pass. C) determine the precise assets of a deceased person. D) prove or confirm the validity of a will. Explanation The answer is see that assets are distributed correctly, but only if the deceased was unmarried. Married couples, as well as unmarried individuals, normally are subject to probate rules. The use of living trusts by spouses can postpone probate until the second spouse dies. Probate confirms the validity of a will, determines the precise assets, and identifies to whom those assets will pass.

Answer 30

A) | see that assets are distributed correctly, but only if the deceased was unmarried.

Question 31

Question #31 of 35 Question ID: 441393 Title to real estate can be transferred upon death by what type of document? ``` A) Special warranty deed B) Warranty deed C) Will D) Quitclaim deed Explanation The answer is will. A will transfers title to real estate upon the death of the testator. Deeds must be delivered and accepted during the lifetime of the grantor to transfer title. ```

Answer 31

C) | Will

Question 32

Question #32 of 35 Question ID: 938053 When a corporation transfers ownership of property, the deed must be signed by ``` A) a broker. B) an authorized officer. C) a grantee. D) a shareholder. Explanation The answer is an authorized officer. Proper authority for the sale must be given by bylaws or by a resolution passed by the board of directors. Shareholders are not necessarily officers, nor are brokers. A grantee does not sign a deed. ```

Answer 32

B) | an authorized officer.

Question 33

Question #33 of 35 Question ID: 936105 A resident of Denver bought acreage in a distant county, never went to see the acreage, and did not use the ground. An artist moved a mobile home onto the land, had a water well drilled, and lived there for 22 years. The artist may become the owner of the land if the artist is in compliance with the state law regarding ``` A) voluntary alienation. B) avulsion. C) requirements for a valid conveyance. D) adverse possession. Explanation The answer is adverse possession. Adverse possession is (hostile) possession of real estate without the permission of the owner and contrary to the owner's best interests. If it continues in an open, conspicuous (notorious) way for the time set by statute (the statutory period), the adverse possessor may take legal action to be declared the owner on the basis of all these facts. ```

Answer 33

D) | adverse possession.

Question 34

Question #34 of 35 Question ID: 954493 In one state, transfer tax is $1.20 for each $300 (or fraction of $300) of the sales price of any parcel of real estate. If a seller's property sold for $250,000, what will be the amount of the transfer tax due? ``` A) $1,000.80 B) $1,250.50 C) $999.99 D) $97.00 Explanation The answer is $1,000.80. The transfer tax due is $1,000.80: ``` $250,000 ÷ $300 = 833.33, rounded up to 834 834 × $1.20 = $1,000.80

Answer 34

A) | $1,000.80

Question 35

Question #35 of 35 Question ID: 453171 Land lost through erosion is an example of ``` A) involuntary alienation. B) voluntary alienation. C) involuntary acceleration. D) adverse possession. Explanation The answer is involuntary alienation. Land lost through erosion is an example of involuntary alienation. ```

Answer 35

A) | involuntary alienation.