Deck 1: Real Estate Investment: Basic Legal Concepts

Question 1

Which type of deed offers the grantee the most protection?

A) Quitclaim deed
B) Special warranty deed
C) General warranty deed
D) Officer's deed

Answer 1

General warranty deed

Question 2

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

Answer 2

True

Question 3

What type of estate lasts for an indefinite period of time?

A) Freehold estate
B) Estate from year to year
C) Leasehold estate
D) Estate for years

Answer 3

Freehold estate

Question 4

An historical summary of the publicly recorded documents that affect the ownership of a property is know as a(n):

A) Estate
B) Deed
C) Abstract of title
D) Lien

Question 5

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

Question 6

A fee simple estates is a type of freehold estate.

Question 7

Which of the following is NOT a good method of title assurance?

A) Seller provides a warranty in the deed.
B) An attorney searches recorded documents.
C) Title insurance is purchased.
D) Seller provides a quitclaim deed.

Question 8

Which of the following is NOT true in regard to a tax sale?

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

Question 9

A reversion and a remainder are similar in that:

A) Both can be sold or mortgaged
B) Both cause the property to go back to the grantor after the sale
C) Neither is an actual interest in the property
D) Neither is considered a future estate

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.

Question 11

Which of the following is FALSE concerning Mechanic's Liens?

A) Gives the right to attach a lien on real estate
B) Can get money through forcing judicial sale
C) Lasts even after the bill for labor and materials has been paid
D) Might not be disclosed by the public records

Question 12

What term BEST describes a person that owns a property and is conveying title to the property to another person?

A) Mortgagor
B) Grantor
C) Mortgagee
D) Grantee

Question 13

Which of the following documents conveys title to a property at the time the purchaser completes the performance of the obligation called for in the document?

A) Junior mortgage
B) Package mortgage
C) Purchase-money mortgage
D) Land contract

Question 14

What legal document conveys title from one person to another?

A) Mortgage
B) Note
C) Deed
D) Title

Question 15

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.