Unit 4: Review Exam

what is the maximum amount per $100 that can be charged for a documentary stamp tax?

• $0.20

• $0.35

• $0.60

• $0.70

Which document includes a promise that title is merchantable?

• quitclaim deed

• warranty deed

• special warranty deed

• certificate of title

transfer of real property is executed when:

• the deed is recorded

• the offer is accepted

• the deed is delivered by the grantor and accepted by the grantee

• the grantor's signature is acknowledged

which clause in a deed warrants ownership in fee simple and the complete right to dispose of the property?

• quiet enjoyment clause

• further assurance clause

• encumbrances clause

• seizin clause

which deed contains covenants and warranties that make it the best deed for the grantee?

• warranty deed

• special warranty deed

• quitclaim deed

• guardians deed

which of the following is NOT essential to the validity of a deed?

• Execution by the grantor

• acknowledgment by a notary

• legal description

• two witnesses

Protection against losses due to undiscovered title defects or encumbrances is best provided by:

• an abstract of title

• a title insurance policy

• an attorney's title opinion

• a homeowner's insurance policy

what is the purpose of recording a deed?

• to give constructive notice

• to avoid paying a penalty

• to give actual notice

• to guarantee marketable title

which is NOT a requirement for a valid deed?

• competent grantor

• two witnesses

• recordation

• consideration

a claim against property that has an affect on merchantable title is a(n):

• encumbrance

• deed

• abstract of title

• standard exception