California Real Estate Instructor Materials Chapter 3 Quiz PDF

Principles of California Real Estate Instructor Materials Chapter 3 Quiz 1. The power of eminent domain may be used   7KHPDMRUGL൵HUHQFHEHWZHHQDQRZQHU¶VWLWOH by: insurance policy and a lender’s title insur...

Principles of California Real Estate Instructor Materials Chapter 3 Quiz 1. The power of eminent domain may be used   7KHPDMRUGL൵HUHQFHEHWZHHQDQRZQHU¶VWLWOH by: insurance policy and a lender’s title insurance A. cities policy is that: B. public utilities A. the lender’s policy covers the interests of C. public universities the mortgagee D. All of the above B. a lender’s policy covers the seller’s interest, while an owner’s policy insures the title C. an owner’s policy covers intangible rights 2. When acquiring a parcel of real property, Liz such as water and mineral rights purchased a standard policy of title insurance. D. an owner’s policy requires a survey to look This will protect against all of the following, for undisclosed encroachments except: A. forgery of a deed in the chain of title to the property 6. A deed could be valid even though: B. lack of capacity of a party to a previous trans- A. it is not in writing DFWLRQWKDWD൵HFWHGWLWOHWRWKHSURSHUW\ B. it has not been signed by the grantor C. easements or liens on Liz’s property that C. the grantee is legally incompetent are not shown by public records D. there is no property description D. the delivery of a deed in the chain of title where the grantor did not intend to convey 7. Which type of deed would be least likely to con- title tain implied covenants made by the grantor? A. General warranty deed 3. Accession occurs when: B. Special warranty deed A. property is passed to heirs according to C. Grant deed statute when a person dies without a will D. Quitclaim deed B. a buyer accedes to terms of a contract C. property is enlarged through the process of 8. A title company that is conducting a title search accretion would want to examine the records at the: D. property is transferred using only a quit- claim deed  $ IHGHUDOODQGR൶FH  % FRXQW\FOHUN¶VR൶FH  & FRXQW\UHFRUGHU¶VR൶FH 4. Ed executes a deed to Ned and Ned records D. All of the above it. Ed later tries to set the conveyance aside, claiming that the deed was never delivered. Why is Ed’s argument unlikely to succeed? 9. Recording a deed gives: A. Ned has already taken possession of the  $ H൵HFWLYHQRWLFH property B. actual notice B. Once the deed is recorded, the transaction C. constructive notice LV¿QDOL]HG D. positive notice C. Recording the deed assures Ned’s lien posi- tion D. In order for Ned to record the deed, Ed must have already delivered it 10  Chapter 3: Transfer of Real Property 10. There are three processes involved in the issu- 13. Chen gave his son a power of attorney to sell ance of a standard title insurance policy. Of the his house. Which of the following statements following, which is not one of those processes? is false? A. Examination and investigation of title A. The power of attorney must include a de- B. Determination of the amount of the insur- scription of the property ance requirement B. Chen’s son may legally deed the property C. Protection of the insured against possible to himself losses due to title defects C. The attorney in fact may sign the name of D. Determination of correct boundary lines his principal through a survey of the property to be D. The attorney in fact may encumber the insured property with a trust deed where another SHUVRQLVWKHEHQH¿FLDU\ 11. When a title company issues an ALTA policy, it will extend the risk, beyond that which is 14. What does the term “escheat” refer to? covered by a standard policy, to include all of A. Revocation of an agent’s license the following, except: B. Commission of constructive fraud A. the rights of parties in possession C. Reversion of property to the state B. unrecorded easements D. Reconveyance of legal title under a deed  & WKHH൵HFWRI]RQLQJUHJXODWLRQV of trust D. unrecorded mechanic’s liens 15. Marta receives personal property through a 12. Recorded title to a parcel of real property was will. She would be known as a/an: vested in Joan Harris, a single woman. After she A. executor married John Hodges, she executed a new deed B. devisee to the property, referring to herself as “Joan C. testator Hodges, a married woman.” The discrepancy D. legatee in the name of the grantor is: A. immaterial so long as the property is ad- equately described B. a defect which may create a cloud on the title C. a defect that could cause the separate property of both spouses to become joint tenancy property D. cured after the deed has been of record for one year 11  Principles of California Real Estate Instructor Materials Answer Key 1. D. The right of eminent domain belongs 8. D. A person performing a title search will to quasi-public organizations such as usually examine all available public public utilities and public universities, records concerning the property, which as well as to municipalities. may require a search at the federal ODQGR൶FHDQGFRXQW\FOHUN¶VR൶FHDV 2. C. Standard title insurance policies do not ZHOODVWKHFRXQW\UHFRUGHU¶VR൶FH insure against losses caused by defects that can’t be discovered by examining 9. C. Recording an instrument provides the public record. constructive notice to the public of the interest set forth in the recorded instru- 3. C. Accretion is a natural process by ment. which property may be enlarged. Any addition of real property through natu- 10. D. A standard policy of title insurance ral forces is known as accession. is based only on investigation of the public record, not on an inspection or 4. D. Recording a deed creates the presump- survey of the property in question. tion that the deed was acknowledged, delivered, and accepted. Transfer of 11. C. No policy of title insurance will insure title occurs at the moment that the against losses caused by governmental grantor delivers the deed and the grant- actions, such as zoning regulations. ee accepts it. 12. B. The discrepancy between the two 5. A. The policy that protects the lender’s names would create a cloud on the security interest in the property, by title. In this situation, the cloud can be requiring an inspection and survey of cured using a quitclaim deed. the property, is also known as a mort- gagee’s policy. 13. B. An attorney in fact may not legally deed real property to himself. 6. C. A deed can be valid even though the grantee is legally incompetent, but not 14. C. If a person dies intestate and without if the deed isn’t in writing, hasn’t been any heirs, that person’s property will signed by the grantor (or the grantor’s escheat to the state. representative), or doesn’t include a property description. 15. D. A person who is bequeathed personal property in a will is a legatee. A person 7. D. A quitclaim deed contains no cov- who is devised real property in a will enants or warranties, either express or is a devisee. implied. 12