National Real Estate 2 Flashcards

National Real Estate #2 Flashcards For the purpose of the United States Geological Survey (USGS), the term datum is defined asA)the mean elevation at the geographical center of the continental United States.B)the official data used by each local city.C)the mean sea level in San Francisco Bay.D)the mean sea level at New York Harbor The answer is the mean sea level at New York Harbor. For the purpose of the United States Geological Survey (USGS), the term datum is defined as the mean sea level at New York Harbor.Real estate is bought and sold on the basis ofA)a legal description.B)a street address.C)plat size only.D)plat and parcel.The answer is a legal description. Real estate is described by accepted legal descriptions. The plat size and plat and parcel are examples of informal reference.Another name for the lot-and-block method of describing a parcel of land isA)the government survey system.B)the Torrens system.C)the metes-and-bounds method.D)the recorded plat method.The answer is the recorded plat method. This system uses lot and block numbers referred to in a plat map filed in the public records of the county where the land is located.At which of the following steps did title to the house actually

transfer or pass to B?Step 1: A decided to convey a house

to B.Step 2: A signed a deed transferring title to B.Step 3: A

gave the signed deed to B, who accepted it.Step 4: B took

the deed to the county recorder's office and had it recorded.A)Step 2B)Step 3C)Step 4D)Step 1 The answer is Step 3. Title in this case was transferred upon delivery and acceptance of the deed. At that moment, the deed was binding between the parties. The purchaser, when later recording the deed, was then also protected against third parties.An important feature of adverse possession is that the individual who intends to make a claim to property owned by someone else mustA)post a notice of ownership on the property.B)use the property.C)keep the claim a secret until the claim has ripened for the number of years required by state law.D)publish a note of claim in a newspaper of general circulation in the state in which the property is located The answer is use the property. The claimant's property use must be open, notorious, continuous, hostile, and adverse to the true owner's right of possession for the statutory period.What is the proper description of this shaded area of a section using the rectangular survey system?A)N½ of the NE¼ of the SW¼ and the SE¼ of the NW¼B)SW¼ of the SE¼ of the NW¼ and the N½ of the NE¼ of the SW¼C)S½ of the SW¼ of the NE¼ and the NE¼ of the NW¼ of the SE¼D)SW¼ of the NE¼ and the N½ of the SE¼ of the SW¼ The answer is the N½ of the NE¼ of the SW¼ and the SE¼ of the NW¼. The location and size of a property can be determined using the rectangular survey system.An individual who makes a claim to certain property, takes possession of it, and most important, uses it, and takes title away from an owner who fails to use or inspect the property for a period of yearsA)must be related to the true owner.B)has acquired the title through adverse possession.C)must notify the owner in writing before claiming such title.D)has committed theft.The answer is has acquired the title through adverse possession. An individual who makes a claim to certain property, takes possession of it and, most important, uses it, and takes title away from an owner who fails to use or inspect the property for a period of years has acquired the title through the principle of adverse possession.

In one state, transfer tax is $1.20 for each $300 (or fraction of $300) of the sales price of any parcel of real estate. If a seller's property sold for $250,000, what will be the amount of the transfer tax due?A)$1,250.50B)$97.00C)$1,000.80D)$999.99 The answer is $1,000.80. The transfer tax due is

$1,000.80:$250,000 ÷ $300 = 833.33, rounded up to 834

834 × $1.20 = $1,000.80

Title to real estate may be transferred during a person's lifetime byA)escheat.B)involuntary alienation.C)devise.D)descent.The answer is involuntary alienation. Transfer of title by devise (will), descent (death intestate), or escheat (for lack of a will and lack of heirs) all occur after death. Involuntary alienation, such as condemnation, foreclosure sale, or tax sale, can occur during a person's lifetime.A metes-and-bounds description is required in a rectangular survey system description whenA)a tract is too large to be described by quarter-sections.B)a tract follows the lot or block lines of a recorded subdivision.C)describing a regular tract.D)a tract is too small to be described by quarter-sections.The answer is a tract is too small to be described by quarter-sections. Metes-and-bounds descriptions within the rectangular survey system usually occur when describing an irregular tract, when a tract is too small to be described by quarter-sections, or when a tract does not follow the lot or block lines of a recorded subdivision , quarter-section lines, or other fractional section lines.What are the turning points in the metes-and-bounds method of property description?A)DivisionsB)MonumentsC)AcresD)Sections The answer is monuments. Monuments are the turning points in the metes-and-bounds method of describing property. In this method, natural, tangible features, such as a distinctive rock or a great tree, were sometimes used as monuments. The path of a stream might serve as all or part of a boundary line. Metes means distance; bounds refers to direction (not boundaries). The description gives distance in a compass direction from the point of beginning (POB) and then from each succeeding monument, until it returns to the POB.Title is NOT considered transferred until the deed isA)delivered to the grantee.B)delivered to and accepted by the grantee.C)released from escrow.D)signed by the grantor.The answer is delivered to and accepted by the grantee.The most complete answer is delivered to and accepted by the grantee during the grantor's lifetime.A method of property description using monuments, distances, and compass directions isA)the plat map.B)the lot and block method.C)the rectangular survey method.D)the metes-and-bounds method.The answer is the metes-and-bounds method. The metes-and-bounds method of legal description uses distance and direction measurements to describe the boundaries of a property.In any township, what is the number of the section designated as the school section?A)16B)36C)25D)1 The answer is 16. Section 16 is one of the centrally located sections in the standard township and is designated as the school section.To be valid, a deed must include all of the following EXCEPTA)name of the grantee.B)tax.C)legal description.D)consideration.The answer is tax. Tax is not included in the deed.Typically, a transfer tax, if any, is imposed by the county in which the property is located at the time the deed is recorded. 38.In determining the height of a structure or establishing the grade of a street, a surveyor usesA)a benchmark.B)a datum.C)a data line.D)a data point.The answer is a datum. In determining the height of a structure or establishing the grade of a street, a surveyor uses a datum.

The air above a property owner's land may be subdivided intoA)sky parcels.B)air parcels.C)air lots.D)sky lots.The answer is air lots. The air above a property owner's land may be subdivided into air lots.In describing real estate, which of the following methods uses a property's physical features to determine boundaries and measurements?A)Rectangular surveyB)Lot and blockC)Government surveyD)Metes and bounds The answer is metes and bounds. Monuments are the turning points in the metes-and-bounds method of describing property. In this method, natural, tangible features, such as a distinctive rock or a great tree, were sometimes used as monuments. The path of a stream might serve as all or part of a boundary line. Metes means distance; bounds refers to direction (not boundaries). The description gives distance in a compass direction from the point of beginning (POB) and then from each succeeding monument, until it returns to the POB.The process of probate isA)the due diligence of the executor.B)a formal judicial process.C)able to be bypassed if the person died testate.D)the reading of the will.The answer is a formal judicial process. Probate is a legal procedure for verifying the validity of a will and accounting for the decedent's assets. The process can take several months to complete.What type of deed provides the grantee with the LEAST protection?A)Quitclaim deedB)General warranty deedC)Bargain and sale deedD)Special warranty deed The answer is quitclaim deed. The quitclaim deed carries no covenants or warranties and generally conveys only whatever interest the grantor may have in the identified property at the time the deed is delivered.Which of the following ways may title to real estate be transferred?A)By saleB)By operation of lawC)All of theseD)By gift The answer is all of these. Title to real estate may be transferred voluntarily by sale or gift. Alternatively, title may be transferred involuntarily by operation of law. The property may be transferred while the owner lives or, after the owner dies, either by will or as provided by state law if the owner died without leaving a will.Townships are subdivided into how many sections?A)36B)50C)24D)100 The answer is 36. Townships are subdivided into 36 sections.In the rectangular survey system, a township is a square formed byA)horizontal township lines and vertical range lines.B)base lines and tiers.C)vertical township lines and horizontal range lines.D)base lines and principal meridians.The answer is horizontal township lines and vertical range lines. Townships are the basic units of the rectangular survey system.Which is the process by which boundaries are measured by calculating the dimensions and area to determine the exact location of a piece of land?A)SurveyB)AppraisalC)Square foot analysisD)Metes and bounds The answer is survey. A survey is the process by which boundaries are measured and land areas are determined, including the onsite measurement of lot lines, dimensions, and a house's position on a lot, as well as the determination of any existing encroachments or easements.The rectangular survey system includes which of the following?A)TownshipsB)MeridiansC)All of theseD)Base lines The answer is all of these. Base lines, meridians, and townships are elements of the rectangular survey system.What is the purpose of probate?A)Satisfy the decedent's debtsB)All of theseC)Distribute all assets correctlyD)Account for all assets that exist The answer is all of these. The purpose of probate is to see that the assets are distributed correctly, that all assets are accounted for, and that the decedent's debts are satisfied.

A 15-year-old recently inherited a parcel of real estate and has decided to sell it. If the 15-year-old executes a deed conveying the property to a purchaser, such a conveyance would beA)valid.B)voidable.C)void.D)invalid.The answer is voidable. Real estate contracts entered into by minors are generally voidable by the minor until the minor reaches the age of majority-18 in most states-or shortly thereafter.The primary heirs of the deceased are the surviving spouse and close blood relatives (such as children, parents, brothers, sisters, aunts, uncles, and, in some cases, first and second cousins) underA)federal law.B)a state's law of descent and distribution.C)the state's real estate laws.D)common law.The answer is a state's law of descent and distribution. The primary heirs of the deceased are the surviving spouse and close blood relatives (such as children, parents, brothers, sisters, aunts, uncles, and, in some cases, first and second cousins) identified under a state's law of descent and distribution.Which of these is a guarantee that the grantor has the right to convey the property?A)Covenant of further assuranceB)Covenant against encumbrancesC)Covenant of seisinD)Covenant of quiet enjoyment The answer is covenant of seisin. The covenant against encumbrances is a warranty that the property is free from encumbrances, except as so noted. The grantor further assures that everything will be done to make the title good.Quiet enjoyment guarantees that the title will be good against third parties who might try to bring legal action to gain the property.All of the following are true of the holder of a fee simple absolute estate EXCEPTA)the estate terminates upon death.B)the holder has the maximum estate available in land.C)the holder has maximum control over the property.D)the holder can transfer rights to others.The answer is the estate terminates upon death. Fee simple absolute estates potentially last forever.In the rectangular survey system, a township is divided intoA)36 sections with 640 acres per section.B)12 sections with 4,000 acres per section.C)6 sections with 3,840 acres per section.D)4 sections with 10,000 acres per section.The answer is 36 sections with 640 acres per section. A township contains 36 sections, and each section is one square mile or 640 acres.Every deed must be signed byA)the grantor.B)the grantor and grantee.C)the grantee.D)the devisee.The answer is the grantor. Either the grantor, or someone acting under the grantor's authority, must execute (sign) every deed, and the grantor must have legal capacity to do so.A grantee who wants to obtain merchantable title via a valid deed should make sure the deed has all of the following EXCEPTA)execution by the grantor.B)words of conveyance.C)a recording stamp after closing.D)a competent grantor.The answer is a recording stamp after closing. Deeds do not need to be recorded to be valid.A legal description stating "start at the street sign at the corner of Ash and 11th, go 100' south to the tree, then 50' west ..." is MOST likely what type of legal description?A)UrbanB)Lot and blockC)Metes and boundsD)Government survey The answer is metes and bounds. Metes and bounds descriptions have a point of beginning, move in a clockwise direction, and then return to the point of beginning.The type of deed that imposes the least liability on the grantor isA)a general warranty deed.B)a special warranty deed.C)a bargain and sale deed.D)a quitclaim deed.The answer is a quitclaim deed. A quitclaim deed carries no covenants or warranties and generally only conveys whatever interest the grantor has when the deed is delivered.