Transfer of Property

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Question #1

Jerome has four grown children. When he dies, he leaves his home to all four children, making them tenants in common with equal shares. One child wants to live in the house, another wants to use it as investment property, and two others want to sell it and take the cash. When they can’t agree on a solution, they end up in court and the property is ______.

A Deeded by appointment

B Transferred via intestate succession

C Partitioned

D Foreclosed

Question #2

Which of the following best describes the non-judicial foreclosure process?

A It’s an outdated process that’s no longer used.

B Regardless of how it sounds, the lender still has to go to court.

C It may be used if the deed of trust includes a power-of-sale clause.

D It’s the same as the judicial process, just called by a different name in different states.

Question #3

Which term is defined as the build-up of land near water from the accumulation of sand, silt, or gravel deposits?

A Accumulon

B Accession

C Accretion

D Avulsion

Question #4

In a California real estate transaction, which of these individuals would require a license to act as the escrow agent?

A Barbara, an associate broker who works for Zack

B Nadia, an attorney engaged by buyer Lulu

C Lulu, a real estate salesperson representing the buyer

D Zack, a real estate broker representing the seller

Question #5

Mark is offering to purchase Sarah’s house. They agree, and open an escrow account together. Mark and Sarah would be considered what to the escrow?

A Interpleaders

B Bilaterals

C Principals

D Escrow agent/holder

Question #6

What’s the purpose of the title search?

A To collect evidence that the title is a marketable title, meaning it’s clear and free of encumbrances

B To insure the owner against any financial loss due to a defect in the title

C To ensure the title is on the record

D To ensure the current owner has the title to give to the buyer

Question #7

Shana received a devise from her mother. What might this be?

A Her mother’s farm

B Her mother’s jewelry

C Her mother’s car

D A written message

Question #8

Eva, Stella, and Lynn own a vacation home two blocks from the beach. Sadly, Stella passed away this winter, and so when summer arrives Eva and Lynn will be sharing the home with Stella’s nephew Drew, to whom Stella willed her share of the property. What type of ownership is this?

A Tenancy in common

B Tenancy by the entirety

C Estate in severalty

D Joint tenancy

Question #9

If a property owner dies intestate and no heirs or creditors can be found, what becomes of the property?

A The state claims the property through escheat.

B The property reverts to a former owner as recorded on the deed.

C A lottery is held for ownership.

D The property is combined with an adjoining property.

Question #10

Select the statement that correctly exemplifies the covenant term.

A The covenant against encumbrances is the grantor’s guarantee that he or she owns the property being conveyed.

B The covenant of warranty promises that the grantor has the capacity to convey title.

C The covenant of quiet enjoyment promises that the grantee won’t be disturbed by a title defect the grantor passes on.

D The covenant for further assurances assures the grantee that there are no undisclosed encumbrances on the property.

Question #11

Which of these statements is NOT true about an extended title insurance policy?

A It’s typically used when the property is paid for in cash.

B It covers some items that aren’t part of the public record, such as unrecorded liens.

C The buyer will most likely pay for this policy.

D It’s typically purchased for the lender.

Question #12

Which document is used to establish proof of ownership?

A Chain of title

B Abstract of title

C Deed

D Title insurance

Question #13

Widget Corporation just bought land on which it plans to build a new manufacturing facility. How is the land owned?

A It’s a joint tenancy.

B There isn’t enough information given to tell.

C It’s held as a tenancy in common.

D It’s owned as an estate in severalty.

Question #14

Kevin and Regina sold their property to Vickey using a general warranty deed. Which of these statements is true?

A Vickey is the grantee.

B Vickey is the grantor.

C Kevin and Regina are the grantees.

D Either Regina or Kevin can convey the property.

Question #15

What do you have to prove in order to claim a piece of property through adverse possession?

A Must be dedicated to you by the true owner

B Possession must be open, notorious, continuous, and uninterrupted without permission of the true owner

C Prove the land was acquired through the accumulation of sediments

D Have a public grant land patent document

Question #16

What’s a quiet title action?

A An action to locate and notify all who may have some claim on the title, and determine the validity of all claims

B A type of title insurance that reimburses the policyholder if the neighborhood is noisier than normal

C A way to anonymously purchase property without filing the title or transfer on record

D A lien placed against a potential land owner for property purchased by another

Question #17

Buyer Maria and seller Doug are closing on June 1. Maria’s mortgage loan is $927.86, and $871.86 will go to interest in the first month. Maria will have to pre-pay interest for June using the 360-day proration method. If Doug owns the closing day, what Maria’s prepaid interest cost be at closing?

A $871.80

B $896.97

C $927.9

D $842.74

Question #18

Which document provides an estimate of the costs a buyer is likely to pay at settlement before the closing?

A Abstract of title

B Sales agreement

C Closing Estimate

D Loan Estimate

Question #19

You’re working with a couple who are in the market for their first home. They’re full of questions, and today they’re asking about how homeownership will affect their tax burden. Of course, you answer by providing information that’s within the scope of your license. Which of these taxes would you mention to your clients as relevant to homeownership?

A Capital gains credit for purchase of a property priced below market value

B Deduction of most closing costs on income tax for the year of purchase

C First-time homebuyer income tax credit based on purchase price of property

D Possible income tax deductions for prepaid interest on a loan

Question #20

Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building?

A As a joint tenant with rights of survivorship

B As a tenant in common with Oliver’s heirs

C In severalty

D In trust

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Transfer of Property

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