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CH 04 - Transfer of Title to Real Property

Total questions: 65

Worksheet time: 2hrs 10mins

Name
Class
Date
1.

Title to real estate passes when a valid deed is:

a)

signed and recorded

b)

signed, delivered and accepted

c)

filed and microfilmed

d)

executed and mailed

2.

Transfer of real estate occurs when the deed is

a)

signed and recorded

b)

signed by the grantor

c)

signed by the grantor, delivered to the grantee and accepted

d)

filed and microfilmed

3.

It is not necessary for a deed to be recorded in order to be valid.

a)

True

b)

False

4.

It is necessary for a deed to be recorded in order to be valid.

a)

True

b)

False

5.

The NC the Conner Act requires deeds to be recorded only

a)

to give constructive notice and protect the owner from claims by third parties

b)

to pass real property to the heirs according to the state statute on descent and distribution

c)

to provide exceptions that must be noted in a separate document

d)

when the property was not properly fenced

6.

Title to real estate inherited from a person who died testate is referred to as a:

a)

legacy

b)

bequest

c)

devise

d)

devise

7.

A __________ is typically the transfer of cash.

a)

legacy

b)

bequest

c)

devise

d)

descent

8.

A _________ is the transfer of personal property.

a)

legacy

b)

bequest

c)

devise

d)

descent

9.

A person who dies with a will dies _________. The passing of the real property through a will is called a _____________.

a)

testate / bequest

b)

intestate / bequest

c)

testate / devise

d)

intestate / devise

10.

A _________ occurs when someone died intestate without a will. The property is passed to the heirs according to the state statute on descent and distribution.

a)

legacy

b)

bequest

c)

devise

d)

descent

11.

A person who dies with a will dies _________.

a)

testate

b)

intestate

12.

The passing of the real property through a will is called a

a)

legacy

b)

bequest

c)

devise

d)

descent

13.

Which of the following is an essential element of a valid North Carolina deed?

a)

a seal

b)

recordation

c)

the signature of the grantee

d)

words of conveyance

14.

Deeds do not need to be sealed, notarized or recorded in order to be valid.

a)

True

b)

False

15.

Deeds need to be sealed, notarized or recorded in order to be valid.

a)

True

b)

False

16.

Deeds only need to be notarized in order to

a)

be recorded and they are only recorded to protect against outside third party claims

b)

convey the property with all rights intact to the buyer

c)

warrant that no undisclosed encumbrances exist against the property

d)

fully transfer the title of the real estate

17.

When the grantor does NOT wish to convey certain property rights:

a)

exceptions must be noted in a separate document

b)

the deed must convey the property with all rights intact

c)

exceptions may be noted in the deed of conveyance

d)

the grantor must convey the entire premises and have the grantee reconvey the rights to be retained by the grantor

18.

A trespasser built a log cabin in a remote area of a national park and occupied the structure for more than 25 years. That person will never be able to claim the property under adverse possession statutes because:

a)

the possession was not notorious

b)

the possession was not open

c)

the property was not privately owned

d)

the property was not properly fenced

19.

____________ is the taking of private property from a private owner.

a)

adverse possession

b)

eminent domain

c)

closed possession

d)

limited

20.

In NC the period of exclusive use in order to claim adverse possession is ___ years.

a)

20

b)

10

c)

5

d)

30

21.

In order to claim adverse possession the use must be

a)

open, continuous, exclusive, adverse and notorious

b)

open, limited, exclusive, adverse and notorious

c)

open, continuous, inclusive, adverse and notorious

d)

open, continuous, exclusive, harmless and notorious

22.

The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that:

a)

the seller owned the property

b)

there are no encumbrances against the property

c)

the buyer now owns the property subject to certain claims of the seller

d)

any and all of the seller's interests in the property belong to the buyer

23.

A quit claim deed only terminates the rights or interests of a seller if

a)

the seller had those rights or interests in the property

b)

the grantor is warranting that no undisclosed encumbrances exist against the property

c)

the grantor retains an ownership interest in the property

d)

a grantor makes additional warranties beyond those given in a general warranty deed

24.

The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that:

a)

the seller owned the property

b)

there are no encumbrances against the property

c)

the buyer now owns the property subject to certain claims of the seller

d)

any and all of the seller's interests in the property belong to the buyer

25.

Which of the following statements about North Carolina deeds is correct?

a)

A general warranty deed is the best way for the buyer to receive title.

b)

A special warranty deed gives the seller the greatest degree of liability.

c)

A bargain and sale deed is very much like the special warranty deed.

d)

A gift deed must be recorded within 30 days to remain valid.

26.

Which of the following is TRUE regarding a special warranty deed?

a)

A grantor makes additional warranties beyond those given in a general warranty deed.

b)

The grantor retains an ownership interest in the property.

c)

The grantor is warranting that no undisclosed encumbrances exist against the property.

d)

The grantor's warranties are limited to the time the grantor owned the property.

27.

Regarding title recordation, which of the following statement(s) is/are true?


l. Physically taking possession of the property is constructive notice.


ll. Public notice of recording documents is actual notice.

a)

l only

b)

ll only

c)

Both l and ll

d)

Neither l nor ll

28.

Regarding title recordation, physically taking possession would be _______ notice.

a)

actual

b)

physical

c)

constructive

d)

adverse

29.

Regarding title recordation, the act of placing documents into a public database provides ___ notice.

a)

official

b)

constructive

c)

conducive

d)

actual

30.

Which of the following would be considered an essential element of a valid deed in North Carolina?


I. Acknowledgement

II. Witnessed

a)

I only

b)

II only

c)

Both I and II

d)

Neither I nor II

31.

Deeds neither have to be acknowledged (notarized) or witnessed to be valid.

a)

True

b)

False

32.

Recordation is required under the Conner Act to provide ___ notice.

a)

constructive

b)

actual

c)

formal

d)

recognized

33.

Deeds need to be acknowledged (notarized) in order to be recorded.

a)

True

b)

False

34.

All of the following may be discovered in a title search, EXCEPT:

a)

the legal description of the property

b)

liens and judgments

c)

easements

d)

encroachments

35.

Which of the following are physical items such as a building, tree or fence would not typically appear in the public records. These items would generally only be discovered by the parties obtaining a survey.

a)

encroachments

b)

easements

c)

liens

d)

judgments

36.

A ___ does not warrant against all claims, only those created during the grantor's term of ownership.

a)

special warranty deed

b)

general warranty deed

37.

A ___ DOES protect title against all claims, not just those during the grantor's term of ownership.

a)

general warranty deed

b)

special warranty deed

38.

The recording of a deed:

a)

is required in order to fully transfer the title of the real estate

b)

makes the deed enforceable

c)

ensures the grantee's interest in a parcel of real estate

d)

warrants the grantee's title to real property

39.

The recordation of a warranty deed:

a)

guarantees ownership

b)

protects the interests of the grantee

c)

prevents claims of parties in possession

d)

provides defense against adverse possession

40.

When the seller of the property gives a deed to a buyer “by, through, or during” the current ownership period of time, what type of deed is given?

a)

General warranty deed

b)

Special warranty deed

c)

Quitclaim deed

d)

Trustees deed

41.

Under the North Carolina Conner Act, all the following documents must be recorded to be enforceable against third parties, EXCEPT:

a)

an easement

b)

a deed of trust

c)

a purchase contract

d)

a set of restrictive covenants

42.

Determine the excise tax to be paid on a house that sells for $268,210 if the buyer makes a $25,000 down payment and the seller takes back a second mortgage for $50,000.

a)

$536.42

b)

$537.00

c)

$533.00

d)

$538.00

43.

When you payoff your mortgage, you receive a

a)

general deed

b)

deed of reconveyance

c)

deed of independence

d)

deed of repossession

44.

All of the following are methods of title assurance EXCEPT

a)

color of title

b)

covenants of title by deed

c)

title insurance

d)

title examination by an attorney

45.

the transfer of real property from one party to another can be defined as

a)

bill of sale

b)

deed of release

c)

alienation

d)

condemnation

46.

voluntary alienation during life occurs only in which way

a)

will

b)

deed delivery

c)

foreclosure

d)

devise

47.

the purpose of a deed's being acknowledged is to:

a)

to make the deed valid

b)

to make the deed eligible for recording

c)

to make the deed eligible for delivery

d)

identify the grantee with certainty

48.

Which of the following describes a metes?

a)

distance

b)

direction

49.

Which of the following describes a bounds?

a)

distance

b)

direction

50.

Metes and bounds

a)

always travel North to South last

b)

always travel North to South first

c)

always travel East to West first

d)

must be created without an easement

51.

A township measures

a)

6 miles x 6 miles

b)

has 640 sections

c)

is 43,560 acres

d)

36 cubic miles

52.

A township measures

a)

36 square miles

b)

has 640 sections

c)

is 43,560 acres

d)

36 cubic miles

53.

All of the following are false EXCEPT

a)

surveys are not required in NC

b)

range lines run east to west

c)

townships are 38 square feet

d)

to die with a will is to die intestate

54.

Which of the following is true about baselines?

a)

they run the middle most part of map and run north to south

b)

they run the middle most part of map and run east to west

c)

they run in any direction from east to west

d)

they run in any direction from north to south

55.

Which of the following is true about meridians?

a)

they run the middle most part of map and run north to south

b)

they run the middle most part of map and run east to west

c)

they run in any direction from east to west

d)

they run in any direction from north to south

56.

All of the following statements referring to methods of transfer are false EXCEPT

a)

an example of voluntary alienation would be foreclosure

b)

transferring property of a deceased person's estate does not require a new listing agreement from the estate

c)

the gift of rel property without a will is a devise

d)

an example of voluntary alienation would not be adverse possession

57.

of the following types of deeds, which provides the grantee with the greatest assurance of title?

a)

special warranty

b)

deed of confirmation

c)

grant deed

d)

general warranty

58.

Which of the following covenants assures the grantee that the grantor has the legal capacity to transfer title?

a)

covenant of quiet enjoyment

b)

covenant of right to convey

c)

covenant of seisin

d)

covenant of warrenty

59.

Which of the following covenants assures the grantee that the grantor has the legal capacity to sell real property?

a)

covenant of quiet enjoyment

b)

covenant of right to convey

c)

covenant of seisin

d)

covenant of warrenty

60.

All of the following are not requirements for valid conveyance of transfer EXCEPT

a)

words of conveyance

b)

an attorney

c)

an appraisal

d)

a notary

61.

The successive conveyances of a title are called

a)

releases

b)

remises

c)

links in the chain of title

d)

abstracts of title

62.

In order to deliver marketable title, attorneys and title companies must prove

a)

a 30 year unbroken and defective title chain

b)

a 30 year unbroken and defect free title chain

c)

a 20 year unbroken and defective title chain

d)

a 35 year unbroken and defective title chain

63.

A title insurance policy can be written to protect all of the following EXCEPT

a)

owner

b)

seller

c)

lessee

d)

mortgagee

64.

forgaries, errors and omissions, and unrecorded liens can be protected by whom with title insurance

a)

buyer and mortgage lender

b)

buyer and seller

c)

seller and mortgage broker

d)

seller and listing agent

65.

a title insurance policy protects the insured against loss caused by

a)

defects in the title existing at the time the insured acquired title

b)

defects in the title created during the insured's ownership

c)

defects in the title created after the insured's ownership

d)

All of these