Transfer of Title

Murphy's farm has been in his family for generations, since his great-great-great grandfather received it as a land grant in 1862. What's the beginning point of this property's chain of title?

• Murphey's grandfather, the previous owner

• Murphey, the current owner

• The federal government that originally granted the land

• Murphey's great-great-great grandfather

Answer explanation

Chain of title always starts with the current owner & goes backwards

Stu is buying Freddie's property. What must occur for the transfer of title to take place?

• Freddie must deliver the deed to Stu

• Stu must sign the deed

• Stu must convey the deed

• Freddie & Stu must sign the deed

A closing agent has several duties to perform before the closing, as well as several after. Which of the following is a task the closing agent must complete after closing?

• Perform a title search

• Prepare a closing statement

• Arrange payoff of the existing loan

• Obtain title insurance

Danette hasn't paid her property's water bill for the first quarter, which was due on April 1st. She's closing with her property's buyer, Jason, on April 1st. What type of expense is this & how will it appear on the settlement statement?

• This is a prepaid expense & will appear as a buyer debit & seller credit

• This is an accrued expense & will appear as a buyer debit & seller credit

• This is a prepaid expense & will appear as a seller debit & buyer credit

• This is an accrued expense & will appear as a seller debit & buyer credit

What information would the Loan Estimate NOT provide to buyers under the TRID-required disclosures law?

• Estimated closing costs

• Loan fees

• Projected payment schedule

• Final closing costs

Margo's accountant tells her that she's eligible to deduct the property taxes she paid on her residence. Select the statement about this deduction that's true.

• Margo has to be an investor to be eligible to deduct property taxes

• Margo can only deduct the property taxes charged back to her at closing

• Margo is in the ownership stage of the property ownership lifecycle

• Margo is in the reversion stage of the property ownership lifecycle

What special concern do foreclosed properties often present?

• The homeowners may or may not have property insurance

• The property sale may be subject to additional fees that will be passed to the new buyer

• There may be tax implications due to buying the property at a discount

• There could be hidden title issues

How might the lengthy purchase process for a short sale or foreclosure impact a buyer's financing?

• Lenders won't lock in an interest rate because of the distressed nature of the sale

• An existing interest rate lock may expire before the transaction is ready to close

• The lender may not be willing to finance a short sale or foreclosure

• The purchase price may increase over time

What may trigger a new 3-day waiting period under TRID before closing?

• Addition of a pre-payment penalty

• Decrease in annual percentage rate

• Decrease in lender fees

• Increase in property taxes

Which of the following would be considered a foreign person according to FIRPTA?

• A real estate investor with dual citizenship in the U.S. & Canada

• A global corporation headquartered in the U.S. with sales offices in 6 other countries

• A company incorporated in France with regional development offices in the U.S.