Property Law Chapter 3 Quiz

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Questions and Answers

Which of the following statements about a deed's validity is accurate?

A deed must always be in writing to be valid.

A property description is mandatory for a deed's validity.

A deed cannot be valid if the grantee is legally incompetent.

It can still be valid even if it has not been signed by the grantor. (correct)

Accession occurs when:

A piece of property is sold.

Property is inherited by heirs.

A property is abandoned by its owner.

Improvements are made to the property. (correct)

Which type of deed provides the least amount of protection to the grantee?

Special warranty deed

Quitclaim deed (correct)

Bargain and sale deed

General warranty deed

What is the term that refers to the reversion of property to the state?

Escheat Signup and view all the answers

What would the discrepancy in Joan Harris's marital name create?

A cloud on the title Signup and view all the answers

Which situation does NOT fall under the risks covered by an ALTA policy?

Recorded mortgages Signup and view all the answers

When Marta receives personal property through a will, what is she called?

Devisee Signup and view all the answers

Which organization holds the right of eminent domain?

Quasi-public organizations Signup and view all the answers

Why is Ed's argument about the conveyance being set aside unlikely to succeed?

Ned has already taken possession of the property Signup and view all the answers

Which process is not involved in the issuance of a standard title insurance policy?

Submission of the deed to the court for approval Signup and view all the answers

When a title company is conducting a title search, what would be the primary record they examine?

County recorder's office Signup and view all the answers

What is the significance of recording a deed?

It gives constructive notice to third parties Signup and view all the answers

Which statement about the power of attorney given by Chen to his son is true?

The power of attorney must include a description of the property Signup and view all the answers

The power of eminent domain can be exercised by which of the following entities?

Local municipalities Signup and view all the answers

Which situation would a standard policy of title insurance NOT protect against?

The personal liability of the owner Signup and view all the answers

What is true regarding an owner’s title insurance policy?

It does not require a survey. Signup and view all the answers

What condition could still validate a deed?

It lacks a witness signature. Signup and view all the answers

Which deed is least likely to include implied covenants made by the grantor?

Quitclaim deed Signup and view all the answers

What occurs when a buyer accedes to the terms of a contract?

The buyer accepts the contract as legally binding. Signup and view all the answers

Why is recording a deed significant?

It creates constructive notice to third parties. Signup and view all the answers

Which statement is false regarding a power of attorney?

The attorney in fact cannot sign on behalf of the principal. Signup and view all the answers

What does the issuance of a standard title insurance policy NOT involve?

Endorsement of existing liens Signup and view all the answers

What effect does the delivery of a deed have on the property's legal status?

It establishes legal ownership in the grantee. Signup and view all the answers

Which of the following is NOT covered by an ALTA policy?

Escheat of property to the state Signup and view all the answers

What does a discrepancy in the name of the grantor typically indicate?

A defect which may create a cloud on the title Signup and view all the answers

When Marta receives property through a will, which term describes her status?

Devisee Signup and view all the answers

Which of the following is a right of quasi-public organizations?

Eminent domain Signup and view all the answers

What is the effect of a trust deed executed by an attorney in fact?

It may encumber the property with a trust deed Signup and view all the answers

Study Notes

Chapter 3 Quiz - Key Concepts

Eminent Domain: Used by cities, public utilities, and public universities.
Title Insurance: Protects against defects in the title to real property. Standard policies protect against forgery of deeds, lack of capacity in prior transactions, easements, liens not on public record, and delivery of deeds where the grantor didn't intend to convey title.
Accession: Enlarging property through natural processes (accretion).
Deeds: A deed is a valid conveyance even without being in writing, as long as it is signed by the grantor. However, a deed must be signed by the grantor, in writing, and have a description of the property to be completely valid. Even if the grantee is not competent, a deed can be valid if it meets certain requirements.
Title Insurance Differences: Owner's policies protect the owner, while lender's policies protect the lender. This distinguishes between the interests each party is trying to secure and protect.
Deed Validity: A deed can be valid even if the grantee is not competent, as long as it's in writing, and the grantor is competent (of legal age and sound mind).
Implied Covenants: General and Special warranty deeds have implied covenants which are not found in quitclaim deeds, which contain no covenants.
Title Searches: Title searches require examining public records at the county clerk's/recorder's office and potentially the federal land office.
Recording a Deed: Recording gives constructive notice and finalizes the transaction.
ALTA Policies: Extend beyond standard policies, covering unrecorded easements, zoning regulations, and unrecorded mechanic's liens.

Transfer of Real Property

Title Insurance Issue (Process): Standard title insurance processes include title examination/investigation, determination of insurance amount, protections against title defects, and boundary line determination.
Power of Attorney: Issues with a power of attorney involving a property sale include that the power of attorney must define the property; the agent may not sell it to themselves, and the attorney-in-fact can act on behalf of the principal.
Title Company Issue (ALTA Policy): ALTA policies protect against title defects, beyond the standard, particularly in possession rights, unrecorded easements, zoning effects, and unrecorded mechanic's liens. This additional coverage extends beyond public records.
Escheat: Property reverts to the state when a person dies without heirs.
Legal Terms: Key terms like executor, devisee, testator, and legatee are used in will contexts, relating to the transfer of property.

Answer Key - Additional Information

Eminent Domain: The government's right to take private property for public use.
Recording Deeds: Recording a deed establishes ownership and provides notice to the public.
Title Insurance: Provides protection against title defects and risks associated with ownership or financing of real estate.
Quitclaim Deed: A deed with no warranties, transferring any interest the grantor may have.
Title Search Documents: Includes public records from federal, county, state, and/or other relevant government offices.
Competent Parties: A person must have the legal capacity to execute a deed (sign and agree to it) in order for it to be valid (e.g., of legal age and sound mind).

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Description

Test your understanding of key concepts in Property Law, including Eminent Domain, Title Insurance, and Deeds. This quiz covers important definitions and distinctions such as the differences between owner's and lender's title insurance policies. Dive into the aspects of valid conveyance and how accessions affect property.

Property Law Chapter 3 Quiz - Key Concepts

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