RE 410 Exam 1 Key terms questions
with complete solutions graded A+
Abstract of Title - correct answer ✔✔historical summary of the publicly recorded documents that affect
a title
Bargain and Sale Deed - correct answer ✔✔Conveys property without seller warranties -
Sometimes called an "as-is" deed
the buyer takes the title with no assurances from the seller
Sherriff's Deed-Trustee's Deed - correct answer ✔✔received by a buyer from a foreclosure or other
forced sale because the sherriff or trustee is acting in a representative capacity
- no warranties are added
Quitclaim Deed - correct answer ✔✔Offers the grantee (buyer) the least protection
simply conveys the grantees rights, interests, and title that the grantor may have had in the property
- simply says the grantor 'quits' whatever 'claim' they have on the property (could be none) in favor of
the grantee
Owner's Policy (Title Insurance) - correct answer ✔✔insures interest of a new property owner
- payable to the owner
-paid by one time premium
Lender's (Mortgagee) Policy (Title Insurance) - correct answer ✔✔insures interest of the mortgagee
- payable to the mortgagee
-paid by one time premium
deed - correct answer ✔✔A written instrument that transfers title of ownership of property from seller
to buyer
, Title Assurance - correct answer ✔✔The means by which buyers of real estate:
1. Learn in advance whether their sellers have and can convey the quality of title they claim to possess.
2. Receive compensation if the title, after transfer, turns out not to be as represented.
Deed Restrictions - correct answer ✔✔limit the use of the property by all subsequent owners of that
property
- owners can use restrictions for personal or business reasons
Easement - correct answer ✔✔the right to use land for a specific and limited purpose
- nonpossessory interest in land
estate - correct answer ✔✔'all that a person owns'
- often used to describe the extent to which rights and interests in real estate are owned
real estate - correct answer ✔✔all realty owned as a part of an individual's estate
- hard assets on a piece of land
- land, site improvements, buildings
- does NOT include bundle or rights
- does NOT include personal property
Estate for years (tenancy for years) - correct answer ✔✔leasehold estate that investors and lenders are
most likely to encounter
- created by a lease that specifies an exact duration for the tenancy
Estate from Year to Year (Periodic Tenancy, Estate from Period to Period) - correct answer ✔✔continues
for successive periods until either party gives proper notice of its intent to terminate at the end of 1+
subsequent periods
with complete solutions graded A+
Abstract of Title - correct answer ✔✔historical summary of the publicly recorded documents that affect
a title
Bargain and Sale Deed - correct answer ✔✔Conveys property without seller warranties -
Sometimes called an "as-is" deed
the buyer takes the title with no assurances from the seller
Sherriff's Deed-Trustee's Deed - correct answer ✔✔received by a buyer from a foreclosure or other
forced sale because the sherriff or trustee is acting in a representative capacity
- no warranties are added
Quitclaim Deed - correct answer ✔✔Offers the grantee (buyer) the least protection
simply conveys the grantees rights, interests, and title that the grantor may have had in the property
- simply says the grantor 'quits' whatever 'claim' they have on the property (could be none) in favor of
the grantee
Owner's Policy (Title Insurance) - correct answer ✔✔insures interest of a new property owner
- payable to the owner
-paid by one time premium
Lender's (Mortgagee) Policy (Title Insurance) - correct answer ✔✔insures interest of the mortgagee
- payable to the mortgagee
-paid by one time premium
deed - correct answer ✔✔A written instrument that transfers title of ownership of property from seller
to buyer
, Title Assurance - correct answer ✔✔The means by which buyers of real estate:
1. Learn in advance whether their sellers have and can convey the quality of title they claim to possess.
2. Receive compensation if the title, after transfer, turns out not to be as represented.
Deed Restrictions - correct answer ✔✔limit the use of the property by all subsequent owners of that
property
- owners can use restrictions for personal or business reasons
Easement - correct answer ✔✔the right to use land for a specific and limited purpose
- nonpossessory interest in land
estate - correct answer ✔✔'all that a person owns'
- often used to describe the extent to which rights and interests in real estate are owned
real estate - correct answer ✔✔all realty owned as a part of an individual's estate
- hard assets on a piece of land
- land, site improvements, buildings
- does NOT include bundle or rights
- does NOT include personal property
Estate for years (tenancy for years) - correct answer ✔✔leasehold estate that investors and lenders are
most likely to encounter
- created by a lease that specifies an exact duration for the tenancy
Estate from Year to Year (Periodic Tenancy, Estate from Period to Period) - correct answer ✔✔continues
for successive periods until either party gives proper notice of its intent to terminate at the end of 1+
subsequent periods
