Unit 9 - 11 Flashcards
Question: A 15-year-old boy recently inherited several parcels of real estate from his late father and has decided to sell one of them. If the boy entered into a deed conveying his interest in the property to a purchaser, such a conveyance is:
A. valid.
B. void.
C. voidable.
D. invalid.
Correct Answer: C. Voidable
Explanation: A conveyance of title can be made by a minor, but the contract could be rescinded by the minor seller when the minor reaches legal age (18 in most cases). This makes the contract voidable.
Question: Every deed must be executed by:
A. the grantee.
B. both the grantee and grantor.
C. the grantor.
D. the mortgagor.
Correct Answer: C. The grantor
Explanation: The grantor is the only one who has to sign (execute) for the deed to be valid.
Question: The words of conveyance are found in which clause?
A. Habendum clause
B. Acceleration clause
C. Reservations clause
D. Granting clause
Correct Answer: D. Granting clause
Explanation: For a deed to be valid, it must contain words of conveyance, which are in the granting clause.
Question: Where is it necessary to define or explain in the deed the ownership to be enjoyed by the grantee?
A. Legal description
B. Habendum clause
C. Exceptions and reservations
D. Considerations
Correct Answer: B. Habendum clause
Explanation: A habendum clause may follow the granting clause. It begins with the words “to have and to hold.”
Question: Land is considered adequately described when the:
A. professional surveyor can locate the property.
B. seller discloses the address.
C. buyer stipulates how the buyer wants the description to read.
D. broker gives the description to the title company for the Closing Disclosure.
Correct Answer: A. Professional surveyor can locate the property
Explanation: Land is adequately described if a professional surveyor can locate the property using the description. The address is not sufficient.
A homeowner signed a deed transferring ownership of his house to a friend. To provide evidence that his signature was genuine, he executed a declaration before a notary. This declaration is called an
A. Affidavit
B. Affirmation
C. Estoppel
D. Acknowledgment
Correct Answer: D. Acknowledgment
Explanation: An acknowledgment is designed to prevent forged and fraudulently induced documents from taking effect.
Question: What type of deed provides the grantee with the least protection?
A. Bargain and sale deed
B. General warranty deed
C. Quitclaim deed
D. Special warranty deed
Correct Answer: C. Quitclaim deed
Explanation: The quitclaim deed carries no covenants or warranties and generally conveys only whatever interest the grantor may have when the deed is delivered.
Question: A deed contains a guarantee that the grantor will compensate the grantee. This is an example of which type of covenant?
A. Further assurance
B. Quiet enjoyment
C. Seisin
D. Warranty forever
Correct Answer: D. Warranty forever
Explanation: The grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future.
Question: A deed contains a promise that the title conveyed is good and that the grantor will obtain and deliver any documents necessary to ensure good title. This promise is an example of which covenant?
A. Seisin
B. Quiet enjoyment
C. Warranty forever
D. Further assurance
Correct Answer: D. Further assurance
Explanation: If the grantor’s spouse failed to sign away dower rights, the grantor must deliver a quitclaim deed to clear the title.
Question: Which type of deed is used by a trustee?
A. Reconveyance deed
B. Quitclaim deed
C. Deed of trust
D. Trustee’s deed
Correct Answer: D. Trustee’s deed
Explanation: This deed is executed by a trustee and used when a trustee conveys real estate held in the trust to anyone other than the trustor. It must state that the trustee is executing the instrument in accordance with the trust instrument.
Question: Which type of deed is used by a trustor?
A. Reconveyance deed
B. Deed of trust
C. Quitclaim deed
D. Trustor’s deed
Correct Answer: B. Deed of trust
Explanation: A deed of trust is the means by which a trustor conveys real estate to a trustee for the benefit of a beneficiary. The real estate is held by the trustee to fulfill the purpose of the trust.
Question: Which type of deed is used to transfer property by a court order or will?
A. Special warranty deed
B. Reconveyance deed
C. General warranty deed
D. Executors’ deed
Correct Answer: D. Executors’ deed
Explanation: Executors’ and administrators’ deeds, master’s deeds, and sheriffs’ deeds are used to convey property transferred by court order or will, as established by state statute.
Question: Which of the following is TRUE regarding a transfer tax in Texas?
A. Texas does not have a transfer tax.
B. The tax is payable at the time the deed is recorded.
C. The taxpayer purchases tax stamps from the county clerk’s office.
D. The transfer tax may be paid by either the buyer or seller.
Correct Answer: A. Texas does not have a transfer tax.
Explanation: Texas does not impose a transfer tax, although many other states do. In those states, the tax is typically payable when the deed is recorded.
Question: Title to property may be transferred without the owner’s consent by:
A. Voluntary alienation
B. Involuntary alienation
C. Sales contract
D. Gift
Correct Answer: B. Involuntary alienation
Explanation: Involuntary alienation occurs when property is transferred without the owner’s consent, such as through foreclosure or eminent domain.
Question: The buyer and seller go under a sales contract. At closing, the seller has consented by:
A. Gifting the property
B. Involuntary alienation
C. Voluntary alienation
D. Hostility
Correct Answer: C. Voluntary alienation
Explanation: When the seller signs the contract and closing documents, they are voluntarily transferring the property.
Question: 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 later died and was survived by a spouse and three children. The real estate will pass:
A. To the owner’s spouse
B. To the heirs mentioned in the owner’s will
C. According to the state laws of descent
D. To the state
Correct Answer: C. According to the state laws of descent
Explanation: A testator must be of sound mind to create a valid will. Since the owner was legally incompetent, the will is invalid, and the property will pass according to state laws of descent.
Question: A person who dies testate can transfer title to their real estate upon their death through which type of document?
A. Warranty deed
B. Will
C. Special warranty deed
D. Quitclaim deed
Correct Answer: B. Will
Explanation: A will allows an owner to convey title to real property after their death.
Question: When a person dies testate, title to real property transfers to the:
A. Testator
B. Deceased person’s heirs
C. Devisee
D. Descendant
Correct Answer: C. Devisee
Explanation: The gift of real property by will is called a devise, and the recipient is known as the devisee.
Question: A person who has died without a will has died:
A. Testate
B. In valid conveyance
C. Intestate
D. Under the acknowledgment clause
Correct Answer: C. Intestate
Explanation: When a property owner dies intestate, title to the property passes to the decedent’s heirs as provided by state laws of descent.
Question: When a person dies, ownership of real estate:
A. Passes immediately
B. Must go through probate
C. Passes via the laws of descent and distribution
D. Passes upon notice to all the devisees in a will
Correct Answer: A. Passes immediately
Explanation: Ownership of real estate passes immediately upon death, either to the heirs by descent or to those named in a will. Full title and possession may require probate.
Question: The process of probate is:
A. The reading of the will
B. A formal judicial process
C. The due diligence of the executor
D. Able to be bypassed if the person died testate
Correct Answer: B. A formal judicial process
Explanation: Probate is a legal procedure for verifying the validity of a will and accounting for the decedent’s assets. It typically involves a court-supervised process to settle the estate.
Question: What type of will is conveyed by orally dictating the individual’s desires?
A. Curtsey
B. Nuncupative
C. Probate
D. Codicil
Correct Answer: B. Nuncupative
Explanation: A nuncupative will is an oral will, typically valid only in certain circumstances. Some states do not allow real property to be conveyed through oral wills.
Question: The date and time a document was recorded helps to establish:
A. Abstract of title
B. Priority
C. Subrogation
D. Marketable title
Correct Answer: B. Priority
Explanation: The recording date and time determine the priority of a claim or lien under the “first in time, first in right” principle.
Question: The recordation of a warranty deed:
A. Gives actual notice of the grantee’s rights
B. Prevents claims of parties in possession
C. Provides defense against adverse possession
D. Gives constructive notice of an individual’s interest
Correct Answer: D. Gives constructive notice of an individual’s interest
Explanation: Recording a deed serves as constructive notice to the public, indicating the individual’s rights or interest in the property.