Quiz When a person receives property from another, the recipient is called the: A) grantor. B) mortgagor. C) grantee. D) decedent.

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1 Quiz 6 A) evidentiary notice. B) clear notice. C) constructive notice. D) actual notice. A) seller. B) lender. C) purchaser. D) adjoining landowners. 3. In a general warranty deed, the grantor warrants that title to the property is sufficiently clear so as to be described as: A) unencumbered. B) cloudless. C) absolute. D) merchantable (marketable). 4. Which of the following is not a requirement of a valid deed? A) The execution of the deed by the grantors. B) An adequate legal description of the property to be conveyed. C) The delivery and acceptance of the deed during the grantor's lifetime. D) The acknowledgment of signatures by a notary public. 5. When a person receives property from another, the recipient is called the: A) grantor. B) mortgagor. C) grantee. D) decedent. 6. A special warranty deed: A) is a full-covenant deed. B) warrants only against defects occurring during grantee's ownership. C) warrants only against defects occurring during grantor's ownership. D) makes no warranty at all. c:\lotus\work\wordpro\exams Chapter 6 Page 1

2 7. Which of the following is not a requirement for a valid deed? A) Words of conveyance. B) Identity of the grantee. C) Recordation. D) Consideration. 8. A search of the public records reveals the following encumbrances are recorded against a property: December 5, 1980, a mechanic's lien for $2,250; December 5, 1980, a judgment lien for $2,250 entered by the court; January 1, 1988, a $78,500 promissory note secured by a deed of trust instrument; February 27, 1990, a $25,700 equity loan promissory note; August 29, 1991, a $3,900 ad valorem tax lien. Which lien must be paid first? A) The lien for the largest dollar amount remaining unpaid. B) The August 29, 1991, ad valorem lien. C) The December 5, 1980, judgment lien because judgment liens take priority over other liens of equal chronological date. D) The January 1, 1988, promissory note since it is chronologically the oldest unsatisfied voluntary lien. A) cloud. B) gap. C) quiet title action. D) flaw. 10. Which type of deed creates the greatest potential liability for the grantor? A) Trustee's deed. B) Bargain and sale deed. C) Quitclaim deed. D) General warranty deed. 11. Constructive notice of a real estate title transfer is achieved by: A) assertion of a claim under oath in open court. B) possession, occupancy, and open public activity, such as constructing a building on the property, so that any interested C) recordation in the public records. D) direct verbal communication of the fact to every party making inquiry. 12. A declaration made by a person before a public officer that he/she c:\lotus\work\wordpro\exams Chapter 6 Page 2

3 freely and voluntarily executed a deed or other instrument is called an: A) acknowledgment. B) execution. C) notary public. D) authentication. 13. A quitclaim deed conveys the interest of the: A) grantee. B) record title holder. C) trustee. D) grantor. A) consideration. B) legal description. C) grantee's signature. D) grantor's signature. 15. The term "quieting title" refers to a: A) court action to determine the rightful titleholder or to clear a cloud on the title. B) mortgagor signing over title to the mortgagee in lieu of foreclosure proceedings. C) title search performed by a title insurance company. D) grantor's attorney clearing a title cloud. 16. Which of the following would always be found by searching the recorded documents at a county courthouse? A) Encroachments. B) Perfected mechanic's liens. C) Parol contracts. D) Rights of parties in possession. 17. The main difference between a general warranty deed and a quitclaim deed is the warranty deed: A) asserts seisin whereas no such claim is made by the quitclaim grantor. B) guarantees a completely unencumbered title whereas the quitclaim grantor warrants title against only undisclosed encumbrances. C) provides a series of covenants (promises) whereas the quitclaim grantor provides only one promise. D) will always be superior to the quitclaim conveyance regardless of date of recordation. 18. Which deed provides the best warranty for the grantee? A) Trustee's deed. c:\lotus\work\wordpro\exams Chapter 6 Page 3

4 B) Bargain and sale deed. C) General warranty deed. D) Quitclaim deed. 19. To be lawful, a deed must be executed by the: A) Grantor. B) Grantee. C) Notary public. D) Recorder of deeds. 20. When two or more deeds exist, both purporting to convey title to the same property, which deed will be enforced? The deed that: A) was signed first. B) was delivered first. C) was recorded first. D) recites the highest amount of consideration. 21. The will states that in recognition of your devoted service as an employee, you are to receive the decedent's automobile. This gift of personal property is a: A) bequest. B) devise. C) descent. D) benefactor. 22. To acquire property through adverse possession, one must occupy the property for the statutory period of time: A) continuously and secretly. B) intermittently and openly. C) continuously and openly. D) sporadically and secretly. 23. A gift of real property by will is known as a: A) devise. B) conveyance. C) donation. D) covenant. 24. The habendum clause in a deed can best be described as the: A) acknowledgment clause. B) have and to hold clause. C) consideration clause. D) warranty of seizin clause. 25. In which one of the following situations would it NOT be appropriate for the parties to use a quit claim deed? c:\lotus\work\wordpro\exams Chapter 6 Page 4

5 B) To transfer title without any title guarantee or warranty whatsoever. C) To convey non-freehold estate. D) To change an incorrect legal description in a previously recorded deed. 26. All of the following deeds are valid, EXCEPT: B) a fictitious person. C) a duly incorporated corporation. D) a deed to a partnership having more than two principals. 27. Which of the following would always be found by a careful search of A) Encroachments. B) Perfected mechanic's liens. C) Rights of parties in possession. D) Implied easements. 28. A public record of the recorded real estate subdivisions within a governmental district is contained in: A) an abstract. B) a plat book. C) a survey. D) a county map. 29. How often are the premiums paid on an owner's title insurance policy? A) Annually. B) Once. C) Monthly. D) Quarterly. 30. How often are the premiums paid on a lender's title insurance policy? A) Annually. B) Once. C) Monthly. D) Quarterly. 31. When the decedent's property is transferred to his/her heirs, the title that is received: A) automatically becomes a fee simple estate. c:\lotus\work\wordpro\exams Chapter 6 Page 5

6 B) becomes better than that held by the decedent. C) is unencumbered. D) retains the same limitations and restrictions as were previously held by the decedent. 32. When an occupant whose possession has been actual, open, notorious, uninterrupted, and exclusive for the statutory period, seeks to acquire title to another person's land in an action to "quiet title," the process is based on what power or statute? A) Eminent domain. B) Adverse possession. C) Escheat. D) Prescription. 33. For a deed to be valid, it must be: A) delivered. B) recorded. C) signed. D) acknowledged. 34. Anticipating the closing would occur soon, the grantor executed the deed several days in advance and deposited it in the hands of the closing agent. Such a deed will be: A) invalid and not enforceable. B) valid as long as it is recorded. C) valid upon delivery. D) invalid if not recorded within 10 days. 35. All of the following are included in a deed, EXCEPT a: A) granting clause. B) recitation of consideration. C) legal description. D) signature of grantee. 36. A person acquiring real property by deed is: A) a vendee. B) a grantee. C) a devisor. D) a trustor. 37. The covenants contained in a quit claim deed include: A) a warranty of seizin. B) a warranty of quiet enjoyment. C) a warranty against undisclosed encumbrances. D) None of these. c:\lotus\work\wordpro\exams Chapter 6 Page 6

7 38. Presuming a proper execution of the deed, the title is transferred: A) when the payment is delivered and accepted. B) when the deed is delivered and accepted. C) when the abstract is delivered and extended. D) when the deed is recorded. 39. Which deed creates the least liability for the grantor? A) Quitclaim deed B) Bargain and sale deed C) Special warranty deed D) General warranty deed 40. When a future use limitation is placed in a deed, it is called: A) a deed restriction. B) a covenant, condition, and restriction (CC&R). C) a statute of limitation. D) a defeasance clause. 41. Real property transferred by a testate death is called a A) legacy. B) descent. C) devise. D) bequest. 42. A parcel of land that measures one-half mile by one-half mile is equivalent to: A) 40 acres. B) 80 acres. C) 160 acres. D) 320 acres. 43. The length of the south boundary of the NW 1/4 of the SW l/4 is: A) 1,320 feet. B) 1,790 feet. C) 2,640 feet. D) 5,280 feet. 44. In the governmental rectangular survey, a normal section is one square mile; thus the SE 1/2 of the NE 1/4 of the SW 1/4 would measure: A) 5,280 feet by 5,280 feet. B) 2,640 feet by 2,640 feet. c:\lotus\work\wordpro\exams Chapter 6 Page 7

8 C) 1,320 feet by 1,320 feet. D) 660 feet by 1,320 feet. 45. In the governmental rectangular survey, a normal section contains 640 acres; thus a 1/8 section would have: A) 640 acres B) 320 acres C) 160 acres D) 80 acres 46. All of following are true of metes and bounds using monuments property descriptions, EXCEPT: A) the system is established on meridians and base lines. B) these surveys are typically not very accurate. C) the survey can utilize both natural and artificial monuments. D) there is a point of beginning. 47. In the government rectangular survey, a typical parcel six miles square would: A) be a range. B) be a section. C) be a check. D) contain 36 sections. 48. The word "metes" in a metes and bounds description refers to: A) the streets on the property. B) the corners of the property. C) the measurement of distances. D) the direction of travel. 49. Which of the following is associated with the governmental rectangular survey? A) A tier is a row of townships extending north or south of the base line. B) An acre contains 43,560 square feet. C) A check contains 36 sections. D) A range line is a strip of land 6 miles wide running east or west of the meridian. 50. In the governmental rectangular survey, why were correction lines utilized? B) To correct the inaccuracy caused by hills and ravines. C) To compensate for the curvature of the earth. D) To compensate for the land that was ignored due to a shallow flowing stream. c:\lotus\work\wordpro\exams Chapter 6 Page 8

9 51. The measurement and establishment of the boundaries of a particular property, usually associated with the placing of metal stakes in the ground to designate the boundaries of the lot, is called a: A) bound post. B) survey. C) monument or marker. D) platting. 52. Of the following title defects, which one would ordinarily be A) A notice of lis pendens. B) A deed delivered after death of grantor. C) A forged satisfaction piece. D) A missing heir. 53. For the mortgagor, what kind of protection is afforded by a comprehensive title insurance policy? I. Protection against any defect in title that results in loss of the owner's equity. II. Payment of the amount of outstanding principal loan balance owed to a lender. A) I only. B) II only. C) Both I and II. D) Neither I nor II. 54. Which best depicts an involuntary alienation of real property? A) A general warranty deed. B) A deed of dedication. C) A devise in a will. D) A condemnation action. Quiz 6 1. Ans: C c:\lotus\work\wordpro\exams Chapter 6 Page 9

10 2. Ans: B 3. Ans: D 4. Ans: D 5. Ans: C 6. Ans: C 7. Ans: C 8. Ans: B 9. Ans: B 10. Ans: D 11. Ans: C 12. Ans: A 13. Ans: D 14. Ans: C 15. Ans: A 16. Ans: B 17. Ans: A 18. Ans: C 19. Ans: A 20. Ans: C 21. Ans: A 22. Ans: C 23. Ans: A 24. Ans: B 25. Ans: C 26. Ans: B 27. Ans: B 28. Ans: B 29. Ans: B 30. Ans: B 31. Ans: D 32. Ans: B 33. Ans: A 34. Ans: C 35. Ans: D 36. Ans: B 37. Ans: D 38. Ans: B 39. Ans: A 40. Ans: A 41. Ans: C 42. Ans: C 43. Ans: A 44. Ans: D 45. Ans: D 46. Ans: A 47. Ans: D c:\lotus\work\wordpro\exams Chapter 6 Page 10

11 48. Ans: C 49. Ans: B 50. Ans: C 51. Ans: B 52. Ans: A 53. Ans: D 54. Ans: D c:\lotus\work\wordpro\exams Chapter 6 Page 11

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