Question 1

A fee simple estate is a type of freehold estate.

Accepted Answer

A fee simple estate is a type of freehold estate, as it involves absolute ownership of the property without any limitations or conditions.

Question 2

Which type of deed offers the grantee the MOST protection?&#10;A)Quitclaim deed&#10;B)Special warranty deed&#10;C)General warranty deed&#10;D)Officer's deed

Accepted Answer

A general warranty deed offers the grantee the most protection as the grantor is warranting title against all defects, whether they existed before or during their ownership. This means that the grantee is protected even if issues arise later on, such as a prior owner having an undisclosed ownership claim or a lien on the property. A special warranty deed only warrants against defects that arose during the grantor's ownership, while a quitclaim deed provides no warranties or protections at all. An officer's deed is typically used in cases where a public official is authorized to transfer property, such as in a foreclosure or eminent domain situation.

Question 3

Real estate refers to the physical land and improvements constructed on the land.

Accepted Answer

Real estate includes the physical land as well as any improvements made to the land, such as buildings or other structures.

Question 4

A quitclaim deed says that the grantor &#34;quits&#34; whatever claim he has in the property in favor of the grantee.

Accepted Answer

A quitclaim deed transfers any interest or claim the grantor has in a property to the grantee, without making any guarantees or warranties of ownership.

Question 5

Which of the following is NOT a good method of title assurance?&#10;A)Seller provides a warranty in the deed&#10;B)An attorney searches recorded documents&#10;C)Title insurance is purchased&#10;D)Seller provides a quitclaim deed

Accepted Answer

A quitclaim deed does not provide any guarantees or warranties regarding the validity of the title. It simply transfers the interest or ownership that the seller may have in the property, but it does not state whether or not the seller actually has clear and marketable title. Therefore, relying solely on a quitclaim deed for title assurance may not be sufficient or prudent. The other options provide more reliable and comprehensive forms of title assurance.

Question 6

What type of estate lasts for an indefinite period of time?&#10;A)Freehold estate&#10;B)Estate from year-to-year&#10;C)Leasehold estate&#10;D)Estate for years

Accepted Answer

A freehold estate is an estate in land that lasts for an indefinite period of time, as the owner has unrestricted rights to the property. This is in contrast to leasehold estates, which have a specific term, and estate from year-to-year or estate for years, which only last for a certain duration.

Question 7

After a house is purchased,contractors cannot ask the new owner of the house to pay any bills that were outstanding before the house was sold.

Accepted Answer

Contractors can place a mechanic's lien on the property for unpaid work, which can affect the new owner, requiring them to address the outstanding bills to clear the title.

Question 8

It is illegal to give a quitclaim deed if the grantor has no claim in the property.

Accepted Answer

A quitclaim deed transfers any interest the grantor may have in the property without making any guarantees about the extent of their interest, if any. It is legal even if the grantor has no actual claim or ownership of the property.

Question 9

Mr.Smith has allowed Mrs.Jones to run a sewer line through Mr.Smith's backyard so that Mrs.Jones has access to the city sewer system.This is an example of a(n):&#10;A)Easement&#10;B)Encumbrance&#10;C)Estate for years&#10;D)Title assurance

Accepted Answer

An easement is a right to use another person's land for a specific purpose. In this case, Mr. Smith has allowed Mrs. Jones to use his backyard for the purpose of running a sewer line. This is a classic example of an easement.

Question 10

As compared to other types of deeds,a general warranty deed provides the most comprehensive warranties about the quality of the title to the property.

Accepted Answer

A general warranty deed provides the grantee with the broadest protection against any defects or claims against the title, including those that may have existed before the grantor acquired the property. The warranties in this type of deed cover not only the grantor's ownership of the property but also the property's history and any potential issues that may arise in the future.

Question 11

If a lender is to repossess or bring about the sale of a property if the borrower defaults on the mortgage loan,the lender is said to have a ________ in the real estate.&#10;A)Freehold interest&#10;B)Lease interest&#10;C)Secured interest&#10;D)Quitclaim

Accepted Answer

The answer of If a lender is to repossess or...

Question 12

A lessee is a person who holds the title to a piece of property.

Accepted Answer

The answer of A lessee is a person who holds...

Question 13

What legal document conveys title from one person to another?&#10;A)Mortgage&#10;B)Note&#10;C)Deed&#10;D)Title

Accepted Answer

The answer of What legal document conveys title from one...

Question 14

A reciprocal easement agreement allows two or more parties to access each other's property.

Accepted Answer

The answer of A reciprocal easement agreement allows two or...

Question 15

The term real estate refers to the ownership rights associated with the physical land and improvements.

Accepted Answer

The answer of The term real estate refers to the...

Question 16

Real property refers to the ownership rights associated with real estate.

Accepted Answer

The answer of Real property refers to the ownership rights...

Question 17

A lien waiver provides certification that contractor's on newly constructed properties have been compensated.

Accepted Answer

The answer of A lien waiver provides certification that contractor's...

Question 18

A(n)________ estate represents the most complete form of ownership of real estate; the owner is free to divide it up into lesser estates and sell,lease,or borrow against them as he or she wishes.&#10;A)Fee simple&#10;B)Freehold&#10;C)Leasehold&#10;D)Life

Accepted Answer

The answer of A(n)________ estate represents the most complete form...

Question 19

The grantee typically conveys title to the grantor by means of a deed.

Accepted Answer

The answer of The grantee typically conveys title to the...

Question 20

What term BEST describes a person that owns a property and is conveying title to the property to another person?&#10;A)Mortgagor&#10;B)Grantor&#10;C)Mortgagee&#10;D)Grantee

Accepted Answer

The answer of What term BEST describes a person that...

Question 21

A term used to link an individual or entity who owns property to the property itself is:&#10;A)Easement&#10;B)Title&#10;C)Deed&#10;D)Lease

Accepted Answer

The answer of A term used to link an individual...

Question 22

A historical summary of the publicly-recorded documents that affect the ownership of a property is known as a(n):&#10;A)Estate&#10;B)Deed&#10;C)Abstract of title&#10;D)Lien

Accepted Answer

The answer of A historical summary of the publicly-recorded documents...

Question 23

All other items not considered realty,including intangibles and movable things,are considered as:&#10;A)Realty&#10;B)Contractual&#10;C)Personality&#10;D)An estate

Accepted Answer

The answer of All other items not considered realty,including intangibles...

Question 24

A reversion and a remainder are similar in that:&#10;A)Both can be sold or mortgaged&#10;B)Both cause the property to go back to the grantor after the sale&#10;C)Neither is an actual interest in the property&#10;D)Neither is considered a future estate

Accepted Answer

The answer of A reversion and a remainder are similar...

Question 25

Which of the following is FALSE concerning Mechanic's Liens?&#10;A)Gives the right to attach a lien on real estate&#10;B)Can get money through forcing judicial sale&#10;C)Lasts even after the bill for labor and materials has been paid&#10;D)Might not be disclosed by the public records

Accepted Answer

The answer of Which of the following is FALSE concerning...

Question 26

Which of the following is FALSE regarding a tax sale?&#10;A)An accurate and complete description of the property is required to be posted for possible purchasers before the sale&#10;B)The property owner may not have had a court appearance through due process,thus creating a cloud on the title&#10;C)The line of authority for the sale may not be clear&#10;D)The purchaser is usually expected to pay all delinquent taxes at the time of sale

Accepted Answer

The answer of Which of the following is FALSE regarding...

Deck 1: Real Estate Investment: Basic Legal Concepts