Deck 1: Real Estate Investment: Basic Legal Concepts

Question 1

A fee simple estate is a type of freehold estate.

Answer 1

True

Question 2

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 2

General warranty deed

Question 3

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

Answer 3

True

Question 4

A quitclaim deed says that the grantor "quits" whatever claim he has in the property in favor of the grantee.

Question 5

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 6

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

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.

Question 8

It is illegal to give a quitclaim deed if the grantor has no claim in 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):

A)Easement
B)Encumbrance
C)Estate for years
D)Title assurance

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

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.

A)Freehold interest
B)Lease interest
C)Secured interest
D)Quitclaim

Question 12

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

Question 13

What legal document conveys title from one person to another?

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

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.

A)Fee simple
B)Freehold
C)Leasehold
D)Life

Question 19

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

Question 20

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 21

A term used to link an individual or entity who owns property to the property itself is:

A)Easement
B)Title
C)Deed
D)Lease

Question 22

A historical summary of the publicly-recorded documents that affect the ownership of a property is known as a(n):

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

Question 23

All other items not considered realty,including intangibles and movable things,are considered as:

A)Realty
B)Contractual
C)Personality
D)An estate

Question 24

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 25

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 26

Which of the following is FALSE regarding 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