Question 1

Title insurance does not cover issues related to misplaced boundary lines.

Accepted Answer

Title insurance typically covers disputes over property lines and other issues that could affect ownership or rights to the property, including misplaced boundary lines.

Question 2

A bargain and sale deed is the same as a special warranty deed.

Accepted Answer

The answer of A bargain and sale deed is the...

Question 3

A bargain and sale deed is the same as a quitclaim deed.

Accepted Answer

A bargain and sale deed provides a guarantee that the grantor holds title to the property, but makes no warranties against encumbrances, while a quitclaim deed transfers any interest the grantor may have in the property without any guarantee of clear title.

Question 4

In a race state, a non-bona fide purchaser can take title to the property.

Accepted Answer

In a race statute jurisdiction, the first party to record the deed, regardless of their knowledge of any prior unrecorded interests, wins the race to title, thus a non-bona fide purchaser can indeed take title to the property if they record first.

Question 5

The period of possession for claiming title by adverse possession is 5-25 years in most states.

Accepted Answer

The period required for acquiring title through adverse possession varies by state, typically ranging from 5 to 25 years, depending on the jurisdiction and specific circumstances.

Question 6

The words of conveyance clause in a deed is referred to as the premises clause.

Accepted Answer

The premises clause, also known as the words of conveyance clause, in a deed specifies the intent to convey the property and includes the grantor's (seller's) and grantee's (buyer's) names, legal description of the property, and any conditions of the conveyance.

Question 7

A sheriff's deed is an example of a judicial deed.

Accepted Answer

A sheriff's deed is issued as a result of a court order, typically following a foreclosure or auction, making it a type of judicial deed.

Question 8

The term "hostile" in adverse possession requires proof of some underlying dispute between the parties.

Accepted Answer

The term "hostile" in the context of adverse possession refers to the possessor's intent to occupy the land without the permission of the rightful owner, not necessarily to an underlying dispute between the parties.

Question 9

Adverse possession cannot arise from a mistake on boundary lines.

Accepted Answer

Adverse possession can arise from a mistake on boundary lines if the person claiming adverse possession has occupied the land in question for a sufficient period of time under the conditions required by law, such as openly, notoriously, and without the true owner's permission.

Question 10

A deed that is not recorded is void.

Accepted Answer

A deed that is not recorded can still be valid between the parties involved; recording is primarily for the purpose of providing public notice and protecting against claims from third parties.

Question 11

A recorded deed cuts off the rights of future buyers of the same property.

Accepted Answer

A recorded deed provides public notice of the ownership claim, thereby protecting the rights of the current owner against future buyers who cannot claim ignorance of the ownership.

Question 12

Damage from second-home smoke is an example of a covered item under a title policy.

Accepted Answer

Title insurance policies cover issues related to the legal ownership of a property, such as liens, encumbrances, or defects in the title, not physical damages or conditions like second-hand smoke damage.

Question 13

The tract index allows users to track title through the tract itself and not through transfers.

Accepted Answer

The tract index is a method of organizing land records by the physical parcel of land (tract) itself, allowing users to track the history and title of a specific piece of property directly through the land parcel, rather than through the chain of title or transfers of ownership.

Question 14

A lis pendens is notice of a pending action.

Accepted Answer

A lis pendens is a written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it.

Question 15

If two persons have title to property, both must sign a deed of conveyance to the property.

Accepted Answer

When property is co-owned, all owners must agree and sign the deed of conveyance to legally transfer their respective interests in the property to a new owner.

Question 16

Some states require a corporate seal on a deed transferring corporate real property.

Accepted Answer

Some states do indeed require a corporate seal on deeds and other official documents when a corporation is transferring real property, as a means to authenticate the corporate act.

Question 17

An acknowledgement on a deed means that the signatures of the grantor(s) have been notarized.

Accepted Answer

An acknowledgement on a deed is a formal declaration before a public official, usually a notary public, by the person who signed the deed (the grantor) that they did so voluntarily and intended to convey the property. This process involves notarizing the signatures of the grantor(s).

Question 18

The warranty that the title to the property is free from encumbrances is given in which deed?

Accepted Answer

A warranty deed guarantees that the property title is free from any liens or encumbrances, ensuring the buyer receives a clear and clean title.

Question 19

Assume the following sequence of events:
Day 1 - O conveys to A
Day 2 - O conveys to B (bfp)
Day 3 - B records
Day 3 - O conveys to C (bfp)
In a notice state, who will have title to the property?

Accepted Answer

In a notice state, the first bona fide purchaser (BFP) to record their interest in the property generally has priority over others. B, being a BFP who recorded before C, would have title to the property.

Question 20

Assume the following sequence of events:
Day 1 - O conveys to A (bfp)
Day 2 - O conveys to B
Day 3 - B records
Day 4 - O conveys to C (bfp)
Day 5 - A records
Day 6 - C records
Under a pure race statute, who has title?

Accepted Answer

Under a pure race statute, the first party to record the deed holds the title, regardless of notice. Since B records first on Day 3, B has the title.

Quiz 14: Methods of Transfer and Conveyance in Real Estate