Unit 6 Exam Rev 2 Flashcards
(35 cards)
All of these are reasons for probate EXCEPT
A)
to confirm that the will is valid.
B)
to identify which persons get any of the estate.
C)
to ensure that the heirs do not fight among themselves.
D)
to determine the exact assets of the deceased person.
Explanation
The answer is to ensure that the heirs do not fight among themselves. Preventing fights among heirs is not the reason for probate.
C)
to ensure that the heirs do not fight among themselves.
Question #2 of 35
Question ID: 938055
A general power of attorney
A)
provides general legal authority for intestate succession.
B)
is illegal in most states.
C)
provides authority to carry out all of the business dealings of the person giving it.
D)
requires delivery and acceptance by the grantee.
Explanation
The answer is provides authority to carry out all of the business dealings of the person giving it. A general power of attorney provides authority to carry out all of the business dealings of the person giving it. A special power of attorney permits the execution of only certain acts.
C)
provides authority to carry out all of the business dealings of the person giving it.
Land lost through erosion is an example of
A) adverse possession. B) voluntary alienation. C) involuntary acceleration. D) involuntary alienation. Explanation The answer is involuntary alienation. Land lost through erosion is an example of involuntary alienation.
D)
involuntary alienation.
Title to real estate may be transferred during a person’s lifetime by
A) devise. B) involuntary alienation. C) descent. D) escheat. Explanation The answer is involuntary alienation. Transfer of title by devise (will), descent (death intestate), or escheat (for lack of a will and lack of heirs) all occur after death. Involuntary alienation, such as condemnation, foreclosure sale, or tax sale, can occur during a person's lifetime.
B)
involuntary alienation.
A deed contains a guarantee that the grantor will compensate the grantee for any loss resulting from the title’s failure in the future. This is an example of which covenant?
A) Further assurance B) Quiet enjoyment C) Warranty forever D) Seisin Explanation The answer is warranty forever. The grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future in the covenant of warranty forever.
C)
Warranty forever
Question #6 of 35
Question ID: 936099
A form authorizing one person to execute documents for another is called
A) a power of attorney. B) a quitclaim deed. C) a release deed. D) a power to represent. Explanation The answer is a power of attorney. That document is a power of attorney; the person named in it is an attorney-in-fact. Deeds do not authorize one person to act for another.
A)
a power of attorney.
Any limitations or reservations that a grantor intends to make part of a conveyance of real estate should be
A)
included in the deed.
B)
noted in the deed by the phrase “with certain reservations.”
C)
noted in a separate document that is conveyed with 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.
A)
included in the deed.
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) void. B) invalid. C) voidable. D) valid. 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.
C)
voidable.
Title to real estate means the right to or ownership of the land and represents the owner’s
A)
bundle of legal rights but in itself does not serve as evidence of ownership.
B)
barrel of legal rights and also serves as evidence of ownership.
C)
bundle of legal rights and also serves as evidence of ownership.
D)
barrel 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.
C)
bundle of legal rights and also serves as evidence of ownership.
A grantor conveys property by delivering a deed. The deed contains five covenants. This is MOST likely
A) a deed in trust. B) a general warranty deed. C) a quitclaim deed. D) a will. Explanation The answer is a general warranty deed. A general warranty deed contains covenants of seisin, further assurance, quiet enjoyment, freedom from encumbrances, and warranty forever.
B)
a general warranty deed.
Title acquired through adverse possession must be open, notorious, continuous, hostile, and
A)
obtained only after notifying the true owner.
B)
adverse to the true owner’s possession.
C)
compatible with the true owner’s possession.
D)
not required through the legal process in the court system.
Explanation
The answer is adverse to the true owner’s possession. Title acquired through adverse possession must be open, notorious, continuous, hostile, and adverse to the true owner’s possession.
B)
adverse to the true owner’s possession.
All of the following are true of deeds EXCEPT
A)
they differ in the promises they offer the grantee.
B)
they are used to transfer title to real estate.
C)
they guarantee ownership.
D)
there must be a competent grantor.
Explanation
The answer is they guarantee ownership. Deeds differ in the promises or warrants they give, they are used to transfer title in real estate, and they must have a competent grantor (which is one of the seven elements that make a deed valid). Deeds do not guarantee ownership.
C)
they guarantee ownership.
The grantor of property transferred by deed promises to compensate the grantee for any future loss sustained by a defect in the title to the property by
A) the covenant of seisin. B) the promissory note. C) the covenant against future losses. D) the covenant of warranty forever. Explanation The answer is the covenant of warranty forever. With this covenant, the grantor promises to compensate the grantee for any loss sustained by the grantee if the title to the property fails at any time in the future.
D)
the covenant of warranty forever.
What type of deed provides the grantee with the LEAST protection?
A) Quitclaim deed B) Special warranty deed C) General warranty deed D) Bargain and sale deed Explanation The answer is quitclaim deed. The quitclaim deed carries no covenants or warranties and generally conveys only whatever interest the grantor may have in the identified property at the time the deed is delivered.
A)
Quitclaim deed
The primary heirs of the deceased are the surviving spouse and close blood relatives (such as children, parents, brothers, sisters, aunts, uncles, and, in some cases, first and second cousins) under
A) common law. B) federal law. C) the state's real estate laws. D) a state's law of descent and distribution. Explanation The answer is a state's law of descent and distribution. The primary heirs of the deceased are the surviving spouse and close blood relatives (such as children, parents, brothers, sisters, aunts, uncles, and, in some cases, first and second cousins) identified under a state's law of descent and distribution.
D)
a state’s law of descent and distribution.
Question #16 of 35
Question ID: 938018
A holdover from English common law, the statute of frauds that is found in all states requires that a deed
A)
be in writing.
B)
be drafted by an attorney.
C)
recite the terms under which the grantor received title to the property.
D)
include the date of birth of the grantor.
Explanation
The answer is be in writing. A deed need not be drafted by an attorney, although that is one way to insure that it will be legally sufficient to transfer title to the identified property.
A)
be in writing.
Question #17 of 35
Question ID: 785053
All of the following are true of the holder of a fee simple absolute estate EXCEPT
A)
the estate terminates upon death.
B)
the holder has the maximum estate available in land.
C)
the holder can transfer rights to others.
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.
A)
the estate terminates upon death.
Question #18 of 35
Question ID: 954494
In one state, the transfer tax is $0.80 per $500 or fraction thereof. There is no tax charged on the first $500 of the price. What tax must the seller pay if the property sells for $329,650?
A) $526.40 B) $527.20 C) $525.60 D) $528.00 Explanation The answer is $527.20. The seller must pay $527.20:
$329,650 – the $500 = $329,150
$329,150 ÷ $500 = 658.3, rounded up to 659 659 × $0.80 = $527.20
B)
$527.20
Question #19 of 35
Question ID: 785064
All of the following are associated with adverse possession EXCEPT
A) open. B) off and on for the last five years. C) hostile. D) adverse. 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.
B)
off and on for the last five years.
Question #20 of 35
Question ID: 938003
Title to property may be transferred without the owner’s consent by
A) voluntary alienation. B) gift. C) involuntary alienation. D) sales contract. Explanation The answer is involuntary alienation. Involuntary alienation is the transfer of property without the consent of the property owner.
C)
involuntary alienation.
Question #21 of 35
Question ID: 938046
Which type of deed is used by a grantor whose interest in the real estate may be unknown?
A) General warranty deed B) Special warranty deed C) Bargain-and-sale deed D) Quitclaim deed Explanation The answer is a quitclaim deed. A quitclaim deed transfers whatever interest the grantor may have. If the grantor has no interest, the grantee will acquire nothing and have no right of warranty claim against the grantor.
D)
Quitclaim deed
Question #22 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)
keep the claim a secret until the claim has ripened for the number of years required by state law.
B)
publish a note of claim in a newspaper of general circulation in the state in which the property is located.
C)
use the property.
D)
post a notice of ownership on the property.
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.
C)
use the property.
Question #23 of 35
Question ID: 938056
What limits are set by the covenants in a general warranty deed?
A)
The covenants are limited to the matters that occurred within the last 10 years.
B)
The covenants are limited to the matters that occurred before the grantor owned the property.
C)
No limits are set.
D)
The covenants are limited to matters that occurred during the time the grantor owned the property.
Explanation
The answer is no limits are set. No limits are set by the covenants in a general warranty deed; the grantor defends the title against the grantor and all those who previously held title.
C)
No limits are set.
Question #24 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) $1,250.50 B) $1,000.80 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
B)
$1,000.80
