Chapter 9 Section 1 Quiz Flashcards

Chapter 9 Section 1 Quiz Flashcards What is an abstract?a) A written opinion as to whether or not there is clear or merchantable titleb) A document that links all past owners of a parcel of land from the root of title to the present dayc) A document that guarantees proof of legal titled) A compilation of documents that includes a caption, chain of title, and other documents that may affect the title of a property

d) A compilation of documents that includes a caption,

chain of title, and other documents that may affect the title of a propertyAn abstract is a compilation of documents with a cover page, or caption, containing documents that may affect the title in addition to the chain of title. The abstract does not offer an opinion or guarantee good title.All of the following statements about title insurance are

accurate, EXCEPT:a) Mortgage lenders may require a

borrower to obtain a lender's title insurance policy before making a loanb) A mortgage lender obtains a mortgagee title insurance policy to protect itself against loss that results from a title defectc) There is no Florida law that requires borrowers to obtain title insuranced) A mortgagor's title insurance policy protects a borrower against the loss that results from a title defect and is not transferable to another owner

b) A mortgage lender obtains a mortgagee title insurance

policy to protect itself against loss that results from a title defectA mortgagee (lender's) title insurance policy is obtained by the borrower, at the insistence of the lender as a requirement of the loan. This policy protects the lender by paying the unpaid balance of the loan if the borrower should lose title to the property as the result of a title defect.Which transfer of ownership would be considered an example of voluntary alienation?a) Transfer of property to legal heirs upon the death of an individual who died intestateb) Transfer of property to the state resulting from an individual who died intestate, with no known heirsc) Transfer of ownership to an individual resulting from open, adverse, hostile, and exclusive possession of the property for a period of seven continuous yearsd) Transfer of title to an heir upon the death of an individual who died testate

d) Transfer of title to an heir upon the death of an individual

who died testateA will is a document that provides for the voluntary transfer (alienation) of title upon the death of an individual who dies testate (left a will). Descent and distribution, escheat, and adverse possession are all examples of involuntary alienation.What does "title to real property" refer to?a) Legal documents claiming ownership of the property that were recorded in the public recordb) Ownership of legally-protected rights to the property, including specific rights of possession, disposition, enjoyment, exclusion, and/or controlc) Possession of real property obtained as a result of payment of the contracted price or partial payment combined with a mortgaged) Legal possession of real property that is free of title defects

b) Ownership of legally-protected rights to the property,

including specific rights of possession, disposition, enjoyment, exclusion, and/or controlTitle to real property refers to ownership of specified rights that form an estate.The type of estate is based on all or specified portion of the bundle of rights that include possession, disposition, enjoyment, exclusion, and control.All of the following statements about an opinion of title are

accurate, EXCEPT:a) An attorney can be sued if their

opinion of title is later determined to have been faultyb) An attorney's opinion of title is a guarantee that the title is goodc) An opinion of title is a written statement of opiniond) An attorney forms an opinion of title after reviewing the

abstract from a title search

b) An attorney's opinion of title is a guarantee that the title

is goodAn attorney's opinion of title is NOT is a guarantee of good title. It is only the attorney's opinion, which could prove to be faulty. A lawsuit against the attorney could be necessary if a defect is later discovered.

What is a chain of title?a) A compilation of all documents from the public records that may have an affect on the title, arranged affording to the date of recordingb) A timeline of recorded documents that links all past owners of a parcel of land from the root of title to the present dayc) A compilation of all documents that may have an effect on the title, assembled in date order in a binder with a caption paged) A search of the public records that proves clear title to a property

b) A timeline of recorded documents that links all past

owners of a parcel of land from the root of title to the present dayA chain of title is a timeline of recorded documents resulting from a search of the public records that links all past owners of a parcel of land from the root of title to the present day. The chain of title does not guarantee clear title.Which statement best describes the difference between actual notice and constructive notice?a) Actual notice is provided by physical possession, whereas constructive notice is achieved by recording documents in the public records.b) Actual notice provides the best evidence of ownership since it has a higher legal priority than constructive notice.c) Actual notice provides evidence of legal ownership, whereas constructive notice does not provide evidence of legal ownership.d) Actual notice is provided when a deed is recorded in the public record, whereas constructive notice is implied by possession of legal papers.

a) Actual notice is provided by physical possession,

whereas constructive notice is achieved by recording documents in the public records.Actual notice of ownership is provided by physical possession, whereas constructive notice of ownership is achieved by recording ownership documents in the public records. Both methods have the same legal priority, but constructive notice provides the best evidence of ownership.What is descent and distribution?a) A law that protects the inheritance of prospective heirs of a person who dies testateb) A statutory system that provides for the transfer of property to the state when the owner dies and has no heirsc) A term used to describe the process of property transfer according to a decedent's willd) A statutory system that provides for the transfer of property to the heirs of a person who dies intestate

d) A statutory system that provides for the transfer of

property to the heirs of a person who dies intestateDescent and distribution is a statutory system created by law that provides for the involuntary transfer of title to legal descendants (heirs) upon the death of an individual (the decedent) who dies intestate (without a will).All of the following statements about adverse possession

are accurate, EXCEPT:a) The claimant has remained in

possession of the property with the permission of the ownerb) The possessor has paid all real estate taxes for all years in possession of the propertyc) There has been open, adverse, hostile, and exclusive possession of the property for a period of at least seven continuous yearsd) The true owner "slept on his rights" and failed to eject the trespasser who is claiming ownership

a) The claimant has remained in possession of the property

with the permission of the ownerUnder adverse possession, an owner who has "slept on his rights" may lose title to a claimant who has taken open, adverse, hostile, and exclusive possession of the property for a period of seven continuous years, provided that the possessor pay all real estate taxes for the years in possession.What is alienation of title?a) Losing title to a propertyb) Finding encumbrances on a title that has been previously been determined to be clearc) Transferring or conveying a title insurance companyb) Transferring or conveying ownership from one party to another

b) Transferring or conveying ownership from one party to

anotherAlienation of title is transferring or conveying ownership from one party to another. Alienation can be voluntary (by deed or will) or involuntary (by descent and distribution, escheat, eminent domain, or adverse possession).