Real Estate Unit 7 Quiz

A title search in the public records may be conducted by:

• Anyone.

• Attorneys and abstractors only.

• Attorneys, abstractors, and real estate professionals only.

• Anyone who obtains a court order under the Freedom of Information Act.

Which statement BEST explains why instruments affecting real estate are recorded?

• Recording gives constructive notice to the world of the rights and interests claimed in the identified parcel of real estate.

• Failing to record will void the transfer.

• The instruments must be recorded to comply with the terms of the statute of frauds.

• Recording proves the execution of the instrument.

A purchaser went to the county building to check the recorder's records, which showed that the seller was the grantee in the last recorded deed and that no mortgage was on record against the property. The purchaser may assume which of the following?

• All taxes are paid and no judgments are outstanding.

• The seller has good title.

• The seller did not mortgage the property.

• No one else is occupying the property.

The date and time a document was recorded help establish which of the following?

• Priority

• Abstract of title

• Subrogation

• Marketable title

A buyer bought a house, received a deed, and moved into the residence but neglected to record the document. One week later, the seller died and the heirs in another city, unaware that the property had been sold, conveyed title to a relative, who recorded the deed. Who owns the property?

• The buyer

• The relative

• The seller's heirs

• Both the buyer and the relative

A property with encumbrances that will outlast the closing:

• Cannot be sold.

• Can be sold only if title insurance is provided.

• Cannot have a deed recorded without a survey.

• Can be sold if a buyer agrees to take it subject to the encumbrances.

Which of the following would be acceptable as evidence of ownership?

• Broker's opinion

• Deed to the current owner signed by the seller

• Land survey

• Title insurance policy

Chain of title is MOST accurately defined as:

• The record of a property's ownership.

• A report of the contents of the public records, including all legal proceedings, regarding a particular property.

• An instrument or document that protects insured parties (subject to specific exceptions) against defects in the record of a property's ownership.

• The examination of the record and hidden risks such as forgeries, undisclosed heirs, errors in the public records, and so on.

A seller delivered title to a buyer at closing. A title search had disclosed no serious defects, and the title did not appear to be based on doubtful questions of law or fact or to expose the buyer to possible litigation. The seller's title did not appear to present a threat to the buyer's quiet enjoyment, and the title insurance policy provided was sufficient to convince a reasonably well-informed person that the property could be resold. The title conveyed would commonly be referred to as:

• A certificate of title.

• An abstract of title.

• A marketable title.

• An attorney's opinion of title.

The person who prepares an abstract of title for a parcel of real estate

• searches the public records and then summarizes the events and proceedings that affect title.

• insures the condition of the title.

• inspects the property.

• issues title insurance.