AR Real Estate QBANK with Answers and Rationale

A title insurance policy protects against title defects A) which have been cleared by a quiet title suit. B) that occurred before closing. C) found after closing. D) no matter when they are discovered. C) found after closing. The title commitment would list any defects found before closing and would exclude them from coverage, so only defects arising after closing are covered. A defect cleared by a quiet title suit is no longer a defect. A property owner conveys a life estate to his cousin for the duration of the life of the cousin's grandfather. If the cousin were to die before his grandfather, how long may his heirs have possession of the property? A) For as long as specified in the deed B) Until the property owner dies C) For as long as determined by a probate court D) Until the grandfather dies D) Until the grandfather dies The cousin's life estate is a life estate pur autre vie, a life estate based on the lifetime of another person, his grandfather. The cousin's heirs may possess the property until the grandfather dies. On the grandfather's death, the life estate ends. An amendment to a contract is created A) before the original contract is written. B) by adding provisions to an accepted contract. C) only by attorneys before the closing. D) only if using fill-in-the-blank agreements. B) by adding provisions to an accepted contract. An addendum is a change to an original contract. An amendment is created to make changes or to add provisions after the original contract is created. The tenant has agreed to pay a fixed monthly rent, a portion of the property taxes, and maintenance on a 1,200-square-foot retail space in a mall. This lease is BEST described as A) a percentage lease.