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NC Real Estate - Chapter 4

Total questions: 51

Worksheet time: 2hrs 42mins

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.

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

a)

legacy

b)

bequest

c)

devise

d)

descent

3.

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

4.

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

5.

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

6.

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

7.

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.

8.

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

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.

9.

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)

II only

c)

Both I & II

d)

Neither I nor II

10.

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

11.

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

12.

Which of the following is TRUE?

a)

The grantor under a special warranty deed warrants that the grantee's title will be defended and protected against any claims whatsoever.

b)

The grantor under a general warranty deed promises that the grantee's title will be defended and protected only against claims resulting from the grantor's ownership.

c)

The grantor under a quitclaim deed only conveys any interest the grantor may have in the property.

d)

A minor will convey absolute ownership interest in a property as long as the signature is obtained in the presence of a parent.

13.

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

14.

The recordation of a general 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

15.

Don, a real estate broker, has agreed to prepare a deed for the seller in a transaction in which he is the listing agent. If he does not charge the seller a separate fee for this service:

a)

He has done nothing illegal since he did not charge a separate fee for his service.

b)

He may have his license suspended or revoked by the North Carolina Real Estate Commission.

c)

He has not violated any rules or laws as long as he obtains consent from both parties prior to engaging in this act.

d)

There is no violation as long as he has a broker’s license.

16.

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

17.

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

18.

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

c)

$533

d)

$538

19.

All of the following are methods of title assurance EXCEPT:

a)

color of title

b)

title insurance

c)

covenants of title in the deed

d)

title examination by an attorney

20.

Voluntary alienation during life occurs only in which of the following ways?

a)

will

b)

foreclosure

c)

deed delivery

d)

devise

21.

Essential elements of a valid deed include all of the following EXCEPT:

a)

acknowledgment

b)

writing

c)

competent grantor

d)

execution by grantor

22.

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

a)

make the deed valid

b)

make the deed eligible for delivery

c)

make the deed eligible for recording

d)

identify the grantee with certainty

23.

Which of the following is the type of notice provided by recording?

a)

actual

b)

reasonable

c)

protective

d)

constructive

24.

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

25.

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

a)

covenant of quiet enjoyment

b)

covenant of right to convey

c)

covenant of seisin

d)

covenant of warranty

26.

Which of the following types of deeds is typically used where one is releasing any interest he/she may have in a parcel of real estate?

a)

quitclaim deed

b)

special warranty deeds

c)

grant deeds

d)

general warranty deeds

27.

A general warranty deed and a quitclaim deed are equally suitable for which of the following?

a)

judicial deed

b)

deed of confirmation

c)

official deed

d)

deed of gift

28.

A grantor left a deed for the grantee to find after the grantor's death. The result was to:

a)

convey the title during the grantor's life

b)

convey the title after the grantor's life

c)

have the title automatically escheat to the state

d)

none of the above

29.

The type of deed used to remove a mortgage lien when the debt is satisfied is a:

a)

deed of surrender

b)

grant deed

c)

deed of release

d)

special warranty deed

30.

If the covenants in a general warranty deed are broken, the grantee's remedy is which of the following?

a)

Sue the grantor for damages in the amount of the loss up to the amount of the purchase price only.

b)

Require the grantor to execute a deed of confirmation only.

c)

Both sue the grantor for damages in the amount of the loss up to the amount of the purchase price and require the grantor to execute a deed of confirmation.

d)

none of the above

31.

The covenants in a general warranty deed will protect the grantee:

a)

against the lawful claims of "all persons whomsoever."

b)

only against the lawful claims arising from the grantor's period of ownership

c)

only if the grantee acquires a valid title insurance policy

d)

never; the general warranty deed provides no protection from the grantor to the grantee

32.

A claim of title by adverse possession may be defeated by the property owner by which of the following?

a)

permission

b)

confirmation

c)

will

d)

condemnation

33.

The type of deed that guarantees the title only against defects that were created during the grantor's ownership is which of the following?

a)

general warranty

b)

special warranty

c)

surrender

d)

release

34.

Which of the following statements regarding a title examination is correct?

a)

The purpose of the title examination is to reassure the purchaser the seller had good an marketable title.

b)

To determine if there are any items, recorded or not, that might negatively impact the seller's title.

c)

The purpose is to determine the quality of title.

d)

The title examination only includes items related to title and does not typically include liens or property tax matters.

35.

The successive conveyances of a title are called:

a)

releases

b)

remises

c)

links in the chain of title

d)

abstracts of title

36.

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

a)

owner

b)

seller

c)

lessee

d)

mortgage

37.

With reference to the metes and bounds property description, which of the following is correct?

a)

It is a description by distances and directions.

b)

It is the primary method of description used in the original 13 colonies.

c)

It must have a point of beginning.

d)

All of the above.

38.

Which of the following legal descriptions would not be considered adequate for conveyance in a deed?

a)

reference to metes and bounds

b)

reference to a previously recorded deed

c)

informal reference

d)

reference to plat book and page

39.

Of the following types of deeds, which provides the grantor with the greatest liability?

a)

special warranty

b)

deed of confirmation

c)

grant deed

d)

general warranty deed

40.

In a metes and bounds description, the description must close; that is, it must do which of the following?

a)

end at the northeast corner of property

b)

end at the point of beginning

c)

end at a known government marker

d)

none of the above

41.

Lucy Landlord owns a house that she leases to Tim Tenant. Which of the following estates in real property exists during the time of Tim Tenant's lease?

a)

leasehold estate

b)

freehold estate

c)

neither a leasehold nor a freehold

d)

both a leasehold and a freehold

42.

Which of the following is an adequate property description?

a)

123 Smith Road, North Carolina

b)

the old Martin place

c)

Book 1968, page 924, Halifax County, North Carolina

d)

none of the above

43.

A __________ property description has a point of beginning.

a)

government rectangular system

b)

legal

c)

points and calls

d)

metes and bounds

44.

If a person dies intestate and has no heirs, his property will _____________ to the state.

a)

devise

b)

escheat

c)

demise

d)

grant

45.

A home is sold for $103,250. What is the amount of exercise tax to be paid by the seller?

a)

$206

b)

$207

c)

$103

d)

$104

46.

Two adjoining lots contain the same front footage. Lot A is 900 feet deep and Lot B is 780 feet deep. If Lot A contains 3.45 acres, how many acres are in Lot B? (Round width to whole numbers.)

a)

2.99 acres

b)

3.98 acres

c)

5.56 acres

d)

16.11 acres

47.

A tract of land measuring 165 wide, 350 deep recently sold for $138,600. What is its price per front foot? (Round to the nearest whole dollar.)

a)

$0.41

b)

$269

c)

$369

d)

$840

48.

Carla recently purchased a tract containing 6.48 acres for $79,035. What would be the selling price of a 50 x 225 foot section of this land if she sells it for the same cost per square foot that she had originally paid for it? (Round answer to whole dollar.)

a)

$3,150

b)

$6,300

c)

$11,250

d)

$40,178

49.

A tract of land measuring 750' x 825' is divided into two tracts by a stream that run diagonally though the property. How many acres are in each portion of the property?

a)

14.20 acres

b)

10.65 acres

c)

7.10 acres

d)

3.55 acres

50.

A house was recently sold for $329,560. How much is due for the revenue stamps in this transaction?

a)

$660

b)

$330

c)

$659

d)

$329

51.

A buyer recently purchased a lot containing .3817 acres. How many square feet does this lot contain?

a)

24,275

b)

21,875

c)

17,825

d)

16,627