Quiz 27: Transfer of

1. In a real transaction, transfer taxes that are due are charged a. to the buyer unless this is forbidden by statute or regulation. b. according to local custom unless the parties are from different . c. to the parties as agreed in the of sale. d. to the agent and broker if the contract does not specify who pays.

2. The title to real estate passes when a valid is a. signed and recorded. c. filed and microfilmed. b. delivered and accepted. d. executed and mailed.

3. The severalty/single owner of a parcel of land sells to a buyer. The buyer insists that the owner's wife join in signing the deed. The purpose of obtaining the wife's signature is to a. waive any marital or homestead rights. b. defeat any curtesy rights. c. provide that the owner is married. d. satisfy the parol evidence rule.

4. A third party holds title to on behalf of someone else through the of a a. devise. c. bequest. b. . d. deed in trust.

5. The primary purpose of a deed is to a. prove . c. give constructive notice. b. transfer title rights. d. prevent adverse .

6. Which of the following documents is signed by the owner of the real estate? a. A deed c. A reconveyance deed b. A 's deed d. A tax deed

7. A special differs from a general warranty deed in that the grantor's in the special warranty deed a. applies only to a definite limited time. b. covers the time back to the original title. c. is implied and is not written in full. d. protects all subsequent owners of the property.

8. Real estate that is inherited from a person who died testate is referred to as a a. legacy. c. devise. b. bequest. d. demise.

9. Which of the following contains no express warranties? a. A c. A warranty deed b. A quitclaim deed d. A deed

ABC Real Estate School 3st ed National Workbook August 2010 Page 332

10. All of the following are required for a deed to be valid EXCEPT a. Date c. Name of the grantee b. Legal description d. Signature of the grantee

11. Ali owns a one-quarter undivided interest in a parcel of land, and he wants his interest transferred to his sister Patty. As a general rule, which of the following actions will transfer Ali's undivided interest out of his name? a. Redemption from sale c. Delivery of a deed b. Making and signing a will d. Signed acceptance of offer to purchase

12. A valid will devises a decedent's real estate after payment of all debts, claims, inheritance taxes, and expenses through the a. administrator of the estate. c. granting clause established in the will. b. of testate succession. d. court action known as probate.

13. When the grantor does not wish to convey certain property rights, he or she a. must note the exceptions in a separate document. b. may not do so, as the deed conveys the entire premises. c. may note the exceptions in the deed of conveyance. d. must convey the entire premises and have the grantee reconvey the rights to be retained by the grantor.

14. The of real estate to the state because of the lack of heirs or other persons legally entitled to own the property is called a. . c. attachment. b. . d. estoppel.

15. Algenis Soto, a resident of the Dominican Republic, bought acreage in the United States. He never came to see it, and did not use it, although he always paid the real estate taxes on it. Without Algenis’ knowledge Andre moved his mobile onto the property, drilled a well for water, and lived there for many years. Andre may have become the owner of the acreage if she has complied with state regarding a. intestate succession. c. the statute of frauds. b. . d. the .

16. What is the basic purpose of acknowledgment before a notary public in signing a deed? a. To make the deed eligible for b. To assure that the title is valid c. To show the genuineness of the grantor's signature d. To prove that the property has not been encumbered

17. Grantee is to a deed as devisee is to a a. trust. c. estate. b. will. d. leasehold.

ABC Real Estate School 3st ed National Workbook August 2010 Page 333

18. Which of the following is true regarding a special warranty deed? a. The grantor is making additional warranties beyond those given in a warranty deed. b. The grantor retains an interest in the ownership. c. The grantor is warranting that no exist against the property. d. The grantor's warranties are limited to the time the grantor owned the property.

19. In which of the following situations could a quitclaim deed NOT be used? a. To convey title c. To remove a cloud on title b. To release a nominal real estate interest d. To warrant that a title is valid

20. Under the terms of a trust established by a will, the trustee is required to sell the real estate the trust holds. The deed that will be delivered at settlement of such a sale is a a. deed of release. c. trustee's deed. b warranty deed. d. trustor's deed.

21. The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that a. the seller owned the property. b. there are no encumbrances against the property. c. the buyer now owns the property subject to certain claims of the seller. d. all of the seller's interests in the property belong to the buyer.

22. A deed must be signed by the a. grantor. c. grantor and grantee. b. grantee. d. grantee and two witnesses.

23. Normally a deed will be considered valid even if a. it is signed by the attorney-in-fact of the seller. c. the grantor is a minor. b. the grantor is not a legal entity. d. the grantor did not deliver the deed.

24. In order for a deed to be valid a. the grantor must be legally competent. c. the deed must be recorded. b. the signature of the grantor must be witnessed. d. the grantee must sign the deed.

25. The type of deed in which the grantor defends the title back to its beginning is a a. trustee's deed. c. special warranty deed. b. quitclaim deed. d. general warranty deed.

26. What will happen to real estate when its deceased owner did not write a will and has no heirs? a. The ownership will pass by devise. b. The ownership will escheat. c. The courts will seize the ownership. d. The ownership will revert to the previous owner.

ABC Real Estate School 3st ed National Workbook August 2010 Page 334

27. A person owned a parcel of land. Subsequent to the owner's death the probate court determined the distribution of the land in accordance with the state's statutes. This process is known as a. escheat. c. condemnation b. probate. d. adverse possession

28. All of the following are requirements for acquiring ownership of property by adverse possession EXCEPT a. of the property must be without the owner's consent. b. Occupancy must be continuous and over a specified period of time. c. The person in possession must compensate the owner. d. The person in possession must occupy the property openly rather than secretly.

29. Which of the following is a voluntary alienation of the property? a. adverse possession c. foreclosure b. condemnation d. owner selling the property

30. Which of the following is an example of involuntary alienation? a. Selling a property to pay off debts b. Giving a piece of land to the zoo c. Having a piece of land sold for delinquent taxes d. Letting another person plant crops on an unused portion of a piece of land

31. Which of the following is an involuntary alienation of property? a. Quitclaim c. Condemnation b. Inheritance d. Gift

32. The clause in the deed that conveys the rights and privileges of ownership is called a: a. habendum clause. c. granting clause. b. appurtenance clause. d. acknowledgment.

33. A deed states that the grantors are conveying all their rights and interests to the grantees to have and to hold. This is communicated in the a. acknowledgment clause. c. covenant of seizen. b. restriction clause. d. habendum clause.

34. The type of deed in which the granting clause states "grant, bargain, and sell" is a a. special warranty deed. c. general warranty deed. b. bargain and sale deed. d. reconveyance deed.

35. The type of deed in which the granting clause states "remise, release, alienate, and convey" is a a. special warranty deed. c. quitclaim deed. b. bargain and sale deed. d. sheriff's deed.

ABC Real Estate School 3st ed National Workbook August 2010 Page 335

Quiz 27 Answer Key

1. c. The transfer tax can be paid by either the buyer or seller, depending on the agreement in the sales contract, or local custom. 2. b. Title is not considered transferred until the deed is actually delivered to and accepted by the grantee. 3. a. In some states, the grantor’s spouse is required to sign any deed of conveyance to waive any marital or homestead rights. 4. d. A trustor conveys real estate to a trustee for the benefit of a beneficiary. The real estate is held by the trustee to fulfill the purpose of the trust. 5. b. Title is a way of referring to ownership. The document by which the owner transfers his/her title is known as the deed. 6. a. Most deeds have to be signed by the owner (grantor) of the real estate. However, trustee’s deeds,, reconveyance deeds, and tax deeds are exceptions. 7. a. The covenants in a general warranty deed extend back to its origins. In a special warranty deed, the grantor warrants that the property was unencumbered during the time the grantor held title. 8. c. The gift of by will is known as a devise, and the person who receives property by will is known as a devisee. 9. b. The bargain and sale deed contains no express warranties against encumbrances, but does imply grantor holds title and possession. 10. d. The deed must be signed by the grantor to be valid. 11. c. To transfer title, the deed must be delivered to and accepted by the grantee. 12. d. For the title to pass to the devisees, state laws require that on the death of a testor, the will must be filed with the court and probated. Probate is the legal procedure verifying the validity of a will accounting for the decede nt’s assets. 13. c. If the grantor coveys less than his or her complete interest, the wording in the granting clause must indicate this limitation. 14. b. When a person dies intestate, title to the real estate passes to the state by the state’s power of escheat, and is an involuntary alienation. 15. b. If possession by Andre has been open, notorious, continuous, hostile and adverse, there must be proof of such for a statutorily prescribed period. 16. c. An acknowledgment is a formal declaration that the person who signs a written document does so voluntarily and the signature is genuine. 17. b. A grantee is the person to whom the property is conveyed. A person who receives property by will is a devisee. 18. d. A special warranty deed contains two basic warranties: that the grantor received title, and that the property was not encumbered during the time the grantor held title, except as noted in the deed. 19. d. The quitclaim deed carries no covenants or warranties. It is used to convey less than a estate or to cure a cloud on the title. 20. c. A trustee’s deed is a conveyance from trustee to a third party. It is used when a trustee conveys real estate held in trust to anyone other than the trustor. 21. d. The quitclaim deed offers no covenants or warranties, only that the grantor “remises, releases, and quitclaims” interest in the property, in any.

ABC Real Estate School 3st ed National Workbook August 2010 Page 336

22. a. A deed must be signed by all grantors named in the deed. The grantee must be named, but does not sign. 23. a. The attorney-in-fact must act under a power of attorney- the specific written authority to execute and sign for another person. 24. a. Competency of the grantor is one of the requirements for a valid deed. The grantor must be of lawful age and sound mind. Witnessing the grantor’s signature, or recording a deed, are not required for validity of deed. 25. d. The general warranty deed provides the greatest protection to the buyer because the grantor defends the title against both himself/herself, and all those who previously had title. 26. b. Title to real estate passes to the state by the state’s power of escheat in the event a person dies intestate. 27. b. Probate is a formal judicious process whose purpose is to see that the assets are distributed correctly. Probate courts distribute assets according to statute only when no other reasonable alternative exists. 28. c. The law recognizes that the use of land is an important function of its ownership, and to claim adverse possession, the possession by the claimant must usually be all of the following: open, notorious, continuous, hostile and adverse. There is no requirement of compensation. 29. d. Voluntary alienation is the legal term for the voluntary transfer of title, such as when the owner sells the property. 30. c. Title to property transferred without the owner’s consent, known as involuntary alienation, is usually carried out by , and can include having the property sold to satisfy delinquent taxes. 31. c. Condemnation is an operation of the law which carries out an involuntary transfer (alienation). 32. c. The granting clause states the grantor’s intention to convey the property. The habendum clause defines the ownership. 33. d. The habendum clause defines or explains the ownership to be enjoyed by the grantee, and its provisions must agree with those stated in the granting clause. The habendum clause begins with the words: “to have and to hold”. 34. b. A bargain and sale deed contains no express warranties, but implies that the grantor holds title and possession. The granting clause usually contains the terms “grant, bargain, and sell.” 35. a. In a special warranty deed, the grantor defends the title against himself/herself. The words usually contained in the granting clause are “remise, release, alienate and convey.”

ABC Real Estate School 3st ed National Workbook August 2010 Page 337