Chapter 5 Review Questions

A chain of title is a/an ?

Chain of successive conveyances and recorded intrests

Which of the following allows title to property to be registered with the court?

The torrens system

Which of the following is true concerning the recording of documents?

Recording real estate documents provides constructive notice of their contents to the world

The Function of the county recorder is to?

Place documents in the public record and maintain indexes of recorded documents

Alender making a loan secured by a mortgage will probably require the borrower to buy?

A mortgagee's title insurance policy

Standard coverage title insurance would protect against all the following EXCEPT?

Encroachments

Which of the following would be contained in a title report?

List of all current encumbrances against the property

An abstract of title would usually be examined by the ?

Attorney for the buyer

Which of the following would benefit most from, and therefore be most concerned with recording a mortgage?

Mortgagee

A mortgagee's title insurance policy protects the?

Lender

Title insurance premiums are paid?

Once, at the time the policy is issued

Sam is planning to purchase a house from Diane. Which of the following would give Sam the most protection against losses resulting from title defects?

owner's title insurance policy

When Rodriguez recorded the deed she received from McDonald, the legal consequence of the recording was to?

give McDonald assurance of holding a first lien

before closing on the purchase, Stein asked his attorney to render a title opinion. The attorney's title opinion will do all the following EXCEPT?

Guarantee that Stein obtains marketable title

At closing, all the following would be debits to the seller EXCEPT:

the earnest money

When completing a buyer's settlement statement, a closing agent will do which of the following to determine the amount of cash the buyer will need at closing?

Subtract the buyer's total credits from the buyer's total debits

The primary purpose of a closing statement is to?

Provide a detailed accounting of each party's debits and credits and the amount each will receive or be required to pay at settlement.

A seller of property is selling a dwelling with a fully-functioning 100' deep well and three sand point wells. The three sand point wells are no longer being used because they have dried up. What must the seller of this property do?

The seller must seal the 3 sand point wells

Which of the following would be considered an environmental issue regarding the sale of property?

Brownfield

A Sellers of property has a well on their property. At what time does the seller have to inform the buyer about the status and location of the well?

Before the purchase and sale paperwork

Which of the following is prorated at the settlement between buyer and seller ?

Taxes