Question 1

Although a vendor may assign his insurance coverage to a vendee, the assignment is not effective until the insurance company approves the assignment.

Accepted Answer

A) True 
 B)False  True

Question 2

In many states, a grantor must acknowledge a deed before a public official such as a notary public before the deed can be recorded.

Accepted Answer

A) True 
 B)False  True

Question 3

An abstract of title lists and summarizes legal instruments, such as deeds and mortgages, and renders an opinion as to their legal validity.

Accepted Answer

A) True 
 B)False  False

Question 4

The Comprehensive Form (HO-3)homeowners insurance covers all possible risks, including floods and earthquakes.

Accepted Answer

A) True 
 B)False

Question 5

Before recording statutes were enacted, the common law rule provided that the first purchaser to take possession had priority over other purchasers.

Accepted Answer

A) True 
 B)False

Question 6

Under a mortgagee loss clause, if a mortgagor-owner intentionally destroys mortgaged property:

Accepted Answer

A) the mortgagee-bank cannot recover from the insurance company. 
B) the mortgagee-bank can recover from the insurance company, which can then recover its loss from the owner. 
C) the mortgagee-bank can recover from the insurance company, but the insurance company cannot recover its loss from the owner. 
D) none of the above. 
A) the mortgagee-bank cannot recover from the insurance company. 
B) the mortgagee-bank can recover from the insurance company, which can then recover its loss from the owner. 
C) the mortgagee-bank can recover from the insurance company, but the insurance company cannot recover its loss from the owner. 
D) none of the above.

Question 7

Pete purchases property from Marie, who purchased it from Doris, a minor.Pete obtains title insurance.Doris, shortly after reaching
The age of majority, wants to reclaim her property.Which of the
Following best describes the result?

Accepted Answer

A) Doris is entitled to the property and Pete may recover from the insurance company. 
B) Doris is entitled to the property and Pete may not recover from the insurance company. 
C) Doris is not entitled to the property because Marie sold it to Pete, but Doris is entitled to damages from Marie. 
D) None of the above. 
A) Doris is entitled to the property and Pete may recover from the insurance company. 
B) Doris is entitled to the property and Pete may not recover from the insurance company. 
C) Doris is not entitled to the property because Marie sold it to Pete, but Doris is entitled to damages from Marie. 
D) None of the above.

Question 8

Insurance practices usually provide for the full cost of repair or replacement up to policy limits in the event of loss, regardless of the size of the limits.

Accepted Answer

A) True 
 B)False

Question 9

All of the following are methods for sellers of real estate to prove they have good title, except:

Accepted Answer

A) title insurance. 
B) Torrens system. 
C) Basic Form homeowners insurance HO-1). 
D) abstract and title opinion. 
A) title insurance. 
B) Torrens system. 
C) Basic Form homeowners insurance HO-1). 
D) abstract and title opinion.

Question 10

A person can acquire actual notice of a prior sale that is not recorded in the public record simply by hearing about it in a conversation.

Accepted Answer

A) True 
 B)False

Question 11

In order to be protected by a lender's title policy, a home purchaser must pay for the coverage.

Accepted Answer

A) True 
 B)False

Question 12

The owner's title insurance policy developed by the American Land Title Association insures the owner against all of the following losses except:

Accepted Answer

A) when the property loses value due to zoning and building ordinances. 
B) when the owner lacks a right of access to his property. 
C) when the property is subject to a lien or encumbrance. 
D) when the land actually belongs to someone else. 
E) when the title to the land is not marketable. 
A) when the property loses value due to zoning and building ordinances. 
B) when the owner lacks a right of access to his property. 
C) when the property is subject to a lien or encumbrance. 
D) when the land actually belongs to someone else. 
E) when the title to the land is not marketable.

Question 13

The Torrens System which was used in many states in the 19th century, is now used in only a few states and is considered to be too expensive and burdensome as a practical alternative to existing practices.

Accepted Answer

A) True 
 B)False

Question 14

A person purchasing a home should, to protect his investment, purchase the following:

Accepted Answer

A) Title insurance. 
B) Homeowner's insurance. 
C) A bond for the notary public. 
D) None of the above. 
E) Two of the above.(a and b) 
A) Title insurance. 
B) Homeowner's insurance. 
C) A bond for the notary public. 
D) None of the above. 
E) Two of the above.(a and b)

Question 15

Generally, before a deed is allowed under law to be recorded:

Accepted Answer

A) in many states it must be acknowledged by the grantee before a notary public. 
B) the grantee must pay all outstanding income taxes. 
C) the grantee must produce identification. 
D) the grantee must prove that the grantor's signature on the deed is valid. 
E) none of the above.
) 
A) in many states it must be acknowledged by the grantee before a notary public. 
B) the grantee must pay all outstanding income taxes. 
C) the grantee must produce identification. 
D) the grantee must prove that the grantor's signature on the deed is valid. 
E) none of the above.
)

Question 16

With property insurance, an insurable interest need only exist at the time the coverage is purchased.

Accepted Answer

A) True 
 B)False

Question 17

Most homeowner policies provide for liability coverage, but only for damages resulting from accidents on the homeowner's property.

Accepted Answer

A) True 
 B)False

Question 18

Raven owns Blackacre.On October 10, she deeds the property to Alexis.Alexis records her deed on November 1.Raven also deeds Blackacre to Bill on October 20 and he records his deed on November 5.Assume that Bill is a bona fide purchaser.In a state that has a Race Statute whose deed will prevail?

Accepted Answer

A) Alexis' deed. 
B) Bill's deed 
C) Raven's deed. 
D) No one's deed will prevail, since deeding property twice violates public policy. 
A) Alexis' deed. 
B) Bill's deed 
C) Raven's deed. 
D) No one's deed will prevail, since deeding property twice violates public policy.

Question 19

Which of the following recording statutes is used the least among the states.:

Accepted Answer

A) Race. 
B) Race-notice. 
C) Notice. 
D) None of the above. 
A) Race. 
B) Race-notice. 
C) Notice. 
D) None of the above.

Question 20

Under the modern mortgagee loss clause, a mortgagee-bank will be covered by an owner's insurance policy even when the mortgagor intentionally destroys the property by arson.

Accepted Answer

A) True 
 B)False

Although a vendor may assign his insurance coverage to a vendee, the assignment is not effective until the insurance company approves the assignment.

In many states, a grantor must acknowledge a deed before a public official such as a notary public before the deed can be recorded.

An abstract of title lists and summarizes legal instruments, such as deeds and mortgages, and renders an opinion as to their legal validity.

The Comprehensive Form (HO-3)homeowners insurance covers all possible risks, including floods and earthquakes.

Before recording statutes were enacted, the common law rule provided that the first purchaser to take possession had priority over other purchasers.

Under a mortgagee loss clause, if a mortgagor-owner intentionally destroys mortgaged property:

Pete purchases property from Marie, who purchased it from Doris, a minor.Pete obtains title insurance.Doris, shortly after reaching The age of majority, wants to reclaim her property.Which of the Following best describes the result?

Insurance practices usually provide for the full cost of repair or replacement up to policy limits in the event of loss, regardless of the size of the limits.

All of the following are methods for sellers of real estate to prove they have good title, except:

A person can acquire actual notice of a prior sale that is not recorded in the public record simply by hearing about it in a conversation.

In order to be protected by a lender's title policy, a home purchaser must pay for the coverage.

The owner's title insurance policy developed by the American Land Title Association insures the owner against all of the following losses except:

The Torrens System which was used in many states in the 19th century, is now used in only a few states and is considered to be too expensive and burdensome as a practical alternative to existing practices.

A person purchasing a home should, to protect his investment, purchase the following:

Generally, before a deed is allowed under law to be recorded:

With property insurance, an insurable interest need only exist at the time the coverage is purchased.

Most homeowner policies provide for liability coverage, but only for damages resulting from accidents on the homeowner's property.

Raven owns Blackacre.On October 10, she deeds the property to Alexis.Alexis records her deed on November 1.Raven also deeds Blackacre to Bill on October 20 and he records his deed on November 5.Assume that Bill is a bona fide purchaser.In a state that has a Race Statute whose deed will prevail?

Which of the following recording statutes is used the least among the states.:

Under the modern mortgagee loss clause, a mortgagee-bank will be covered by an owner's insurance policy even when the mortgagor intentionally destroys the property by arson.

The Nature of Property

The Scope of Real Property

Rights in Land of Others

Types of Ownership

The Search for Real Estate

The Real Estate Contract

Financing the Real Estate Purchase

Closings and Taxation: Other Methods of Acquisition

Landlord and Tenant

Rights and Duties of Landowners and Occupants

Legal Planning and Regulation of Land Use

Environmental Law and Regulation

Filters

Exam 8: Title and Insurance

Although a vendor may assign his insurance coverage to a vendee, the assignment is not effective until the insurance company approves the assignment.

In many states, a grantor must acknowledge a deed before a public official such as a notary public before the deed can be recorded.

An abstract of title lists and summarizes legal instruments, such as deeds and mortgages, and renders an opinion as to their legal validity.

The Comprehensive Form (HO-3)homeowners insurance covers all possible risks, including floods and earthquakes.

Before recording statutes were enacted, the common law rule provided that the first purchaser to take possession had priority over other purchasers.

Under a mortgagee loss clause, if a mortgagor-owner intentionally destroys mortgaged property:

Pete purchases property from Marie, who purchased it from Doris, a minor.Pete obtains title insurance.Doris, shortly after reaching The age of majority, wants to reclaim her property.Which of the Following best describes the result?

Insurance practices usually provide for the full cost of repair or replacement up to policy limits in the event of loss, regardless of the size of the limits.

All of the following are methods for sellers of real estate to prove they have good title, except:

A person can acquire actual notice of a prior sale that is not recorded in the public record simply by hearing about it in a conversation.

In order to be protected by a lender's title policy, a home purchaser must pay for the coverage.

The owner's title insurance policy developed by the American Land Title Association insures the owner against all of the following losses except:

The Torrens System which was used in many states in the 19th century, is now used in only a few states and is considered to be too expensive and burdensome as a practical alternative to existing practices.

A person purchasing a home should, to protect his investment, purchase the following:

Generally, before a deed is allowed under law to be recorded:

With property insurance, an insurable interest need only exist at the time the coverage is purchased.

Most homeowner policies provide for liability coverage, but only for damages resulting from accidents on the homeowner's property.

Raven owns Blackacre.On October 10, she deeds the property to Alexis.Alexis records her deed on November 1.Raven also deeds Blackacre to Bill on October 20 and he records his deed on November 5.Assume that Bill is a bona fide purchaser.In a state that has a Race Statute whose deed will prevail?

Which of the following recording statutes is used the least among the states.:

Under the modern mortgagee loss clause, a mortgagee-bank will be covered by an owner's insurance policy even when the mortgagor intentionally destroys the property by arson.

The Nature of Property

The Scope of Real Property

Rights in Land of Others

Types of Ownership

The Search for Real Estate

The Real Estate Contract

Financing the Real Estate Purchase

Closings and Taxation: Other Methods of Acquisition

Landlord and Tenant

Rights and Duties of Landowners and Occupants

Legal Planning and Regulation of Land Use

Environmental Law and Regulation

Filters