Deck 31: Buying and Selling Real Property

Question 1

The warranty deed transfers the most complete interest in a piece of property.

Answer 1

True

Question 2

Mortgages may always be assumed without the consent of the lender.

Answer 2

False

Question 3

A seller may agree to finance a portion of the purchase price for the buyer.

Answer 3

True

Question 4

A contract of sale should include the names of the parties, the purchase price, a description of the property, and the date when title to the property will pass.

Question 5

The buyer is usually responsible for paying the real estate agent's commission.

Question 6

If flaws in the title cannot be cleared up, the buyer can cancel the contract.

Question 7

The contract between a person selling a house and a real estate agent is called

A) escrow.
B) a purchase offer.
C) a listing contract.
D) a contract of sale.

Question 8

One who transfers title to real property is called the grantee.

Question 9

All of the transactions relating to a piece of real property over a period of years are summarized in the survey.

Question 10

The deposit a buyer makes when a contract of sale is signed is called escrow.

Question 11

A deposit on a real estate contract is usually held by the

A) buyer's attorney.
B) seller.
C) seller's attorney.
D) seller or the seller's attorney.

Question 12

The major reason to record a deed is to protect the buyer.

Question 13

Closing costs are always the sole responsibility of the buyer.

Question 14

The Real Estate Settlement Procedures Act applies to all closings of real property.

Question 15

The final step in a real estate transaction is usually called a(n)

A) foreclosure.
B) escrow agreement.
C) settlement.
D) closing.

Question 16

The purchase of a home is usually financed by a mortgage.

Question 17

Baker put his house on the market for $90,000. Dalton offered $80,000, which Baker refused. Baker then offered to sell Dalton the house for $85,000. Baker's $85,000 offer is a(n)

A) counteroffer.
B) acceptance.
C) bid.
D) contingency.

Question 18

A contract for the purchase and sale of a home is required to be in writing by the

A) statute of limitations.
B) statute of frauds.
C) Torrens System.
D) title examiner.

Question 19

The purpose of a title search is to determine whether there are any claims on real property other than those of the owner.

Question 20

Only the buyer may insert contingencies in the contract of sale.

Question 21

The guarantees contained in a warranty deed are called

A) escrows.
B) covenants.
C) easements.
D) guarantees.

Question 22

A deed that gives to the buyer whatever title the seller has is a

A) bargain and sale deed.
B) warranty deed.
C) quitclaim deed.
D) mortgage deed.

Question 23

If a defective title is discovered after property has been transferred by a warranty deed, the responsibility lies with the

A) seller to the buyer.
B) buyer to the seller.
C) county clerk to both parties.
D) buyer to the seller and the county clerk to both parties.

Question 24

Conditions in a contract of sale that may void the contract if not met are called ____________________.

Question 25

A seller who passes a quitclaim deed is released from any further claims if the seller has

A) a faulty title.
B) no title.
C) a good title.
D) all of these.

Question 26

If a mortgage is silent with regard to assuming it, it is most likely

A) that it can be assumed.
B) that it cannot be assumed.
C) that it can be assumed if it is an FHA or VA guaranteed mortgage.
D) none of these.

Question 27

An agreement in which a purchaser of land pays for it over a period of time and receives title only upon making the final payment is known as a(n)

A) mortgage.
B) escrow agreement.
C) land contract.
D) collateral agreement.

Question 28

A deed containing no warranties is a

A) bargain and sale deed.
B) warranty deed.
C) quitclaim deed.
D) land contract.

Question 29

A detailed accounting that buyers and sellers receive at closing is pursuant to

A) state law.
B) federal law.
C) the contract of sale.
D) local custom.

Question 30

Claims against property for unpaid taxes, rights of others, and unpaid mortgages are known as

A) covenants.
B) instruments.
C) contingencies.
D) encumbrances.

Question 31

The loan a buyer takes out to finance the purchase of real property is called a(n) ____________________.

Question 32

The purchase of real property may be financed by

A) assuming an existing mortgage.
B) obtaining a new mortgage from a financial institution.
C) obtaining a mortgage from the seller.
D) all of these.

Question 33

Recording a deed is done primarily to protect the

A) county clerk.
B) buyer.
C) seller.
D) buyer's attorney.

Question 34

A title search might disclose

A) unpaid taxes.
B) mortgages against the property.
C) restrictive covenants.
D) all of these.

Question 35

A summary of all transactions affecting a specific piece of property is called a(n)

A) title property.
B) title record.
C) abstract of title.
D) clerk's record.

Question 36

Taking over an existing mortgage when purchasing property is known as a(n) ____________________.

Question 37

A property map made by a licensed surveyor is called a(n)

A) tape location map.
B) geodetic survey.
C) line map.
D) instrument survey.

Question 38

When title insurance is obtained, the most common type of deed used is the

A) warranty deed.
B) quitclaim deed.
C) executor's deed.
D) bargain and sale deed.

Question 39

The person or institution granting a loan on real property is called the ____________________.

Question 40

A(n) ____________________ contract is the agreement executed by an owner and real estate broker for the sale of the owner's property.

Question 41

Ortiz agreed to sell Patton her house for $50,000, but they did not sign a contract of sale. Later, Ortiz changed her mind and refused to go through with the sale. Is Ortiz legally obligated to sell her house to Patton for $50,000?

Question 42

The document that transfers title to real property from seller to buyer is the ____________________.

Question 43

Insurance that protects the purchaser of property from outstanding claims is called ____________________ insurance.

Question 44

The legal interest an owner has in real property is called the ____________________.

Question 45

Fram signed a contract to sell his home to Mills, with possession to be given on May 1. If Mills cannot obtain a mortgage by May 1 and the contract is silent about this, can Fram force Mills to close the transaction on May 1?

Question 46

An examination of property records to determine whether there are any liens, mortgages, or restrictions on the property is called a(n) ____________________.

Question 47

Litton signed a listing contract with Monroe, a real estate broker, allowing Monroe to sell his (Litton's) house for $60,000. Monroe found a buyer who was willing to pay $65,000. May Monroe keep the extra $5,000?

Question 48

The ____________________ allows the mortgagor to pay the balance due on the mortgage before the end of the mortgage term without a penalty.

Question 49

Crane sold a house to O'Brien, unaware that there was asbestos in the walls. May O'Brien sue Crane for fraud or to rescind the contract of sale?

Question 50

Tovin sold his house to Lake in the morning. Later the same day, Tovin sold the same house to Andre. Andre recorded the deed at once. Lake did not record the deed he received until two days later. Who legally owns the property?