Real estate Unit 4 Flashcards

Real estate Unit 4 Flashcards The method of legal description using meridians and base lines is calledA)government survey.B)informal reference.C)metes and bounds.D)street address.A)government survey.The government survey (rectangular survey) established sections, townships, and ranges in the western United States.A metes-and-bounds legal description that does not return to the point of beginning is consideredA)imperfect and in need of correction.B)informal.C)standard as long as the first words used were "starting at or commencing at."D)imperfect because there is a variance on the property.A)imperfect and in need of correction.A metes-and-bounds description that does not start and end at a point of beginning is considered to be imperfect and in need of correction.In MOST cases, in order for a deed to be recorded, it must beA)acknowledged.B)valid.C)signed by the grantee.D)signed by both the grantor and grantee.A)acknowledged.Deeds need to be acknowledged by the grantor(s) to be recorded.A deed that has not been recorded may NOT provideA)competent parties.B)actual notice.C)constructive notice.D)an essential element.C)constructive notice.A cloud on title has been discovered. The married couple who owned the property in joint tenancy did not properly sign the deed before giving the property to their daughter.One spouse is deceased. The daughter is now trying to sell the property. The BEST way to release the deceased's interest would be withA)a quitclaim deed.B)a sheriff's deed.C)a special warranty deed.D)a warranty deed.A)a quitclaim deed.A quitclaim deed is used to release interests.Which of the following would give a buyer the MOST protection against losses resulting from title defects?A)Abstract of titleB)Mortgage default insuranceC)Owner's title insurance policyD)Mortgagee's title insurance policy C)Owner's title insurance policyThe best protection for a property buyer comes in the form of an owner's title insurance policy.In quitclaim deeds, the grantors covenantA)nothing.B)that they own the property and have the right to convey title.C)that they will defend any claims against the title.D)that the title is marketable.A)nothing.There are no covenants (promises) in a quitclaim deed.A lender making a loan secured by a mortgage will probably require the borrower to buyA)life insurance for the borrower.B)an owner's title insurance policy.C)a mortgagor's title insurance policy.D)a mortgagee's title insurance policy.D)a mortgagee's title insurance policy.To protect their interests, lenders generally require a borrower to purchase a mortgagee's title insurance policy (also called a lender's policy or a loan policy).If the sales price is $300,000, then the excise tax will beA)$60.B)unnecessary.C)$600.D)$6,000.

C)$600.The excise tax is figured as follows: sales price ÷

500; $300,000 ÷ 500 = $600.

Smith owns a rectangular parcel of land with 300 feet of road frontage and 120 feet of depth. He plans to construct an apartment building on the land. Each apartment will

contain 600 square feet. If the apartments are set back 20 feet from the road, 25 feet from the back of the lot, and 7 feet from the sides of the lot, how many apartments can Smith build if the apartment building is five stories tall?A)180B)177C)175D)35 C)175A = L × WA = 286' × 75' = 21,450 sq. ft. ÷ 600 sq. ft.= 35.75 (You cannot have a fraction of an apartment.)35 ×

• = 175 apartments

Which parties must sign a deed to make it valid?A)Grantees onlyB)Grantors onlyC)Both grantors and granteesD)Lessees only B)Grantors onlyThe grantors sign (execute) the deed.Which of the following deeds carries with it no warranties whatsoever?A)Quitclaim deedB)Sheriff's deedC)Special warranty deedD)Timber deed A)Quitclaim deedA quitclaim deed comes with no warranties.To be valid, a deed must haveA)a competent grantee.B)a description of all improvements.C)a list of encumbrances.D)a legal description.D)a legal description.Valid deeds must contain a property (or legal) description.If a three-acre property sold for $25,000 per acre and the seller-owner financed 80% of the sales price, how much excise tax would the seller pay?A)$150B)$1,500C)$250D)$25 A)$150Number of acres × sales price ÷ 500 = excise tax3 ×

$25,000 = $75,000 ÷ 500 = $150

A legal description states the following: "Starting at the

corner of Elm Street, go 45 feet east to Happy Street, then 50 feet south to Ash Street, then 45 feet west to Adams Avenue, and then 50 feet to the point of beginning." The legal description has how many square feet?A)22,250B)250C)2,250D)2,500 C)2,250L × W = areaThe property boundaries create the

measurement needed: 45 ft × 50 ft = 2,250.

A triangular lot has a road frontage of 500 feet and a depth of 620 feet. The owner agrees to sell the lot for $8,000 per acre. How much money per front foot will the owner receive if he sells the lot? (Round the acres to two decimal places.Round to the nearest dollar.)A)$57B)$75C)$522D)$28,480 A)$57A = ½(B × H)A = ½(500 × 620) = 155,000 sq. ft. ÷ 43,560 = 3.56 acres$8,000 × 3.56 = $28,480 ÷ 500 front feet = $56.96, rounded to $57 The grantor of a qualified fee estate has set the requirement that the property "must be used only as a school"; this requirement is known asA)a determinable condition.B)a reversionary interest.C)a deed condition.D)a remainder interest.C)a deed condition.Deed conditions are used to create the requirements of qualified fee estates.Delivery of title to real property occurs at the momentA)the deed is delivered and accepted.B)the deed is signed by the grantor.C)the grantor receives the consideration.D)the deed is recorded.A)the deed is delivered and accepted.Title transfers upon delivery and acceptance of the deed.The covenant affirming that the grantor holds title and has the right to convey it to another is the covenantA)of quiet enjoyment.B)of seisin.C)against encumbrances.D)of further assurance.B)of seisin.The covenant of seisin affirms that the grantor owns and has the right to convey title.In regard to a deed, the term "execution" refers toA)delivery and acceptance.B)the signature(s) of the grantor(s).C)recordation.D)notarization.B)the signature(s) of the grantor(s).Execution of a document refers to the act of signing it; in this case, only the seller/grantor signs the deed.A party that takes possession of another's real property without permission may at some future date be able to claimA)title due to adverse possession.B)prescriptive easement rights.C)a qualified fee estate.D)reversionary rights.A)title due to adverse possession.A party taking possession of another's real property without permission actually, openly, continuously, exclusively, notoriously, and hostilely for the minimum statutory period may be able to go to court and claim title to the property.

Legal action taken on a title claimant's behalf to resolve all clouds on title is known asA)a partition suit.B)a foreclosure suit.C)a quiet title suit.D)a suit for damages.C)a quiet title suit.Clouds are removed from title in a quiet title action.Before closing on the purchase of a duplex, the buyer asked his attorney to render a title opinion. The attorney's title opinion will do all of the following EXCEPTA)disclose unreleased liens against the property.B)guarantee the buyer obtains marketable title.C)disclose the amount and status of property taxes and special assessments.D)disclose personal judgments against the seller.B)guarantee the buyer obtains marketable title.An attorney's title opinion does not guarantee marketable title.The person who signs the deed and conveys title is calledA)the grantor.B)the trustor.C)the grantee.D)the lessor.A)the grantor.The grantor is the only party who signs the deed.When the state acquires private property through condemnation, upon payment of just compensation, it has exercised which of the following governmental rights?A)EscheatB)Taxing powerC)Eminent domainD)Police power C)Eminent domainCondemnation is the process by which the government exercises its power of eminent domain.Title insurance premiums for the owner's indemnity policy are paidA)annually, along with the homeowners insurance premium.B)once, at the time the policy is issued.C)monthly, with the mortgage payment.D)semiannually, along with the property taxes.B)once, at the time the policy is issued.Title insurance policies protect against title flaws that already exist but are as yet undiscovered. Therefore, the title company charges only one premium, which is typically paid at settlement.Jacobson deeds property to Keene, who neither records her deed nor takes possession of the property. Jacobson later deeds the same property to Linder, who records his deed and takes possession of the property. Linder is not aware of the earlier conveyance to Keene. Who holds legal title to the property?A)Keene, because Keene's deed is dated firstB)Jacobson, because Keene did not record her deedC)Keene and Linder as tenants in common, because the form of ownership was not specified in the deedD)Linder, because Linder's deed was recorded first D)Linder, because Linder's deed was recorded firstIn a race/notice recording system, subsequent purchasers who record their deed first have good title to the property, as long as they did not have actual notice of the earlier conveyance.Determine the dollar amount of excise tax to be paid by the seller on a North Carolina home that sold for $103,167.(Round to the next whole dollar.)A)$104.00B)$206.50C)$103.50D)$207.00 D)$207.00Divide sales price by $500 or multiply it by 0.002 (1.00 ÷ 500).$103,167 ÷ 500 = $206.334, rounded to $207 When the buyer recorded the deed from the seller, the legal consequence of the recording was toA)protect the seller from existing adverse claims.B)transfer title.C)serve as constructive notice of the buyer's ownership interest.D)give the seller assurance of holding a first lien.C)serve as constructive notice of the buyer's ownership interest.Recording serves constructive notice (also called legal notice) of interests in real property.After completing the plat map, the developer's next step is toA)sell the lots.B)request a certificate of