Real Estate Course 1 Chapter 2 Flashcards

Real Estate Course 1 Chapter 2 Flashcards What does a Grantor/Grantee title search attempt to do?Locate records by searching the parties listed on a recorded instrument.A lienis an indication of debt secured by the property.What does the job of an abstractor entail? An abstractor must verify that the abstract is complete by reviewing recent certifications that the abstract is correct, checking for gaps in dates and certification numbers, and ensuring that a proper legal description appears with each entry.What are the three accepted methods of legally describing parcels of real estate?Metes and boundsRectangular survey system, or government survey methodLot and block method, or recorded plat method What refers to taxes that are imposed on homeowners and landowners to cover the cost of improvements that will benefit all those upon whom the tax was imposed?Special assessments Three people have identical rights but unequal shares in a property, share an indivisible interest, and may sell or transfer their interest without consent of the others. This type of ownership is this?Tenancy in common An historical summary of all consecutive grants, conveyances, wills, records and judicial proceedings that affect the title to a particular property is an abstract and opinion.Who are the essential parties involved in an estate in trust?Trustor, trustee, and beneficiary What are the three main forms of ownership? In severalty - Held by only one ownerIn co-ownership - Held by two or more peopleIn trust - Held by a third party for the benefit of someone else Who conducts a search for abstract of title? An abstractor Define lis pendens.A written notice that a lawsuit has been filed which concerns the title to real property or some interest in that real property What are the four unities needed to create a joint tenancy?Unity of timeUnity of titleUnity of interestUnity of possession What is one defining characteristic of a tenancy in common?No survivorship List three items not covered by a title insurance policy.Problems with the title that occur after the date the owner purchased the policy.The penalties of the owner's failure to pay for the property.An unrecorded title defect that the owner knew about or allowed to occur.The "four unities" required to create a joint tenancy include which of the following conditions?Parties must acquire respective interests at the same time.Who needs title insurance and why?Both the buyer and the lender need title insurance.Insurance for the buyer ensures a clear title and protects

his or her investment. Insurance for the lender protects the lender's interest in the property.

Why is recording a deed important and how is that result accomplished?Recording the deed to a property gives an owner protection from any other titles to the property that are not recorded in the public record. This is done through constructive notice.What describes a lien placed on a property by the lender when granting a mortgage for a property?A property lien What is an abstract of title?A document that briefly summarizes the various activities that affect the ownership of a parcel of land.What is a chain of title?The succession of property owners of record dating back to the original grant of title from the state to a private party.Investor Bob was contracted to purchase a piece of property when Agent Jill called and said a defective conveyance to the title was found. This would create a/an clouded title to the property.What does a living trust do?Allows the trustor, during his or her lifetime, to convey title to a trustee for the benefit of a third party What two types of co-ownership does Minnesota recognize?Tenancy in commonJoint tenancy What does an abstract of title do?Briefly summarizes the various activities affecting ownership of a parcel of land How long do loan policies remain in effect? Loan policies remain in effect until the loan is repaid.What does the phrase "running the chain of title" mean?Identifying the list of owners from the present/current owner back to the original owner What does the Statute of Frauds require? Certain documents to be in writing to be enforceable How long does title insurance stay in effect? Until the property sells again When the abstracting process is combined with an insurance program, the result is title insurance.