Law of Contracts Champions ACTUAL
UPDATED Questions and CORRECT
Answers
lot and block - CORRECT ANSWER -a way to describe land in a subdivision using a
recorded map (plat) and lot numbers
title - CORRECT ANSWER -legal ownership of property
alienation - CORRECT ANSWER -the act of transferring property ownership to someone
else
voluntary alienation - CORRECT ANSWER -when the owner willingly transfers property
( like through a sale or a gift )
adverse possession - CORRECT ANSWER -when someone takes ownership of land by
living on it without permission for a long time ( usually years ) under specific conditions
interstate - CORRECT ANSWER -dying without a will
chain of title - CORRECT ANSWER -history of all the past owners of a property
abstract of title - CORRECT ANSWER -a summary of the property's ownership history
and any legal issues
abstractor/ examiner - CORRECT ANSWER -a person who researches and summarizes a
property's title history
,title examination - CORRECT ANSWER -the process of reviewing the property's
ownership records to make sure the title is clear ( no legal problems)
title insurance policy - CORRECT ANSWER -insurance that protects the buyer or lender
if problems with the title come up after purchase
home inspection - CORRECT ANSWER -a professional check of a home's condition
before buying it
closing disclosure - CORRECT ANSWER -a document that shows all the final costs and
terms of the home loan and purchase
proration - CORRECT ANSWER -splitting certain costs ( like taxes or utilities) fairly
between buyer and seller at closing
title commitment - CORRECT ANSWER -document from a title company promising to
issue title insurance if certain conditions are meet
subrogation clause - CORRECT ANSWER -a part of insurance policy that lets the
insurance company take legal action to recover money from someone else who caused the loss
closing - CORRECT ANSWER -the final step in a real estate deal when the property
officially changes owners, and money and documents are exchanged
controlled business arrangement - CORRECT ANSWER -when companies involved in
real estate deal ( like a real estate agency and a title company) are owned by the same parent
company and refer business to each other --- this must be disclosed to the buyer
kickback - CORRECT ANSWER -an illegal payment or reward for referring business ( for
example, a real estate agent getting a secret money fro recommending a certain lender or
inspector )
,will - CORRECT ANSWER -a legal document who gets your stuff after you die
codicil - CORRECT ANSWER -a legal change or addition to a will
devise - CORRECT ANSWER -property ( usually real estate ) given to someone in a will
deed - CORRECT ANSWER -a legal document that transfers ownership of a property
from one person to another
covenant - CORRECT ANSWER -a promise written into a deed or other legal agreement,
often about how the property can or can't be used
restriction - CORRECT ANSWER -a rule or limit placed on how a property can be used,
often found in a deed or neighborhood agreement
reservation - CORRECT ANSWER -when a seller keeps a right to something ( like water
rights or an easement ) after selling the property
general warranty deed - CORRECT ANSWER -a deed that guarantees the buyer full
protection against any problems with the title, even from before the seller owned the property
special warranty deed - CORRECT ANSWER -a deed that only guarantees the title is clear
during the time the seller owned the property --- not before
bargain and sale deed - CORRECT ANSWER -a deed that transfers ownership without
guarantees about the title, but implies the seller has the right to sell
quitclaim deed - CORRECT ANSWER -a deed that transfers any ownership the seller has,
but with no guarantees--- often used between family or in low-risk situations
, gift deed - CORRECT ANSWER -a deed used to give property as a gift, without any
money exchanged
guardian's deed - CORRECT ANSWER -a deed used when a legal guardian sells property
on behalf of a minor or someone who can't manage their own affairs
sheriff's deed - CORRECT ANSWER -a deed given to the buyer of property sold at a
court- ordered sale, usually due to foreclosure
correction deed - CORRECT ANSWER -a deed used to fix a mistake in a previous deed
(like a typo or wrong name)
tax deed - CORRECT ANSWER -a deed given to someone who buys property at a tax sale
( because the previous owner didn't pay property taxes)
assemblage - CORRECT ANSWER -the process of combining two or more pieces of land
into one larger piece
sovereignty of the soil - CORRECT ANSWER -the idea that the government originally
owns all land before its granted to individuals
probate - CORRECT ANSWER -the legal process of handling a person's property after
they die, including paying debts and transferring ownership
abstract of title - CORRECT ANSWER -a summary of all legal records and documents
that show who has owned a property and any claims against it
mortgage - CORRECT ANSWER -a loan used to buy a home, the home is collateral,
meaning the lender can take it if the loan is not paid
UPDATED Questions and CORRECT
Answers
lot and block - CORRECT ANSWER -a way to describe land in a subdivision using a
recorded map (plat) and lot numbers
title - CORRECT ANSWER -legal ownership of property
alienation - CORRECT ANSWER -the act of transferring property ownership to someone
else
voluntary alienation - CORRECT ANSWER -when the owner willingly transfers property
( like through a sale or a gift )
adverse possession - CORRECT ANSWER -when someone takes ownership of land by
living on it without permission for a long time ( usually years ) under specific conditions
interstate - CORRECT ANSWER -dying without a will
chain of title - CORRECT ANSWER -history of all the past owners of a property
abstract of title - CORRECT ANSWER -a summary of the property's ownership history
and any legal issues
abstractor/ examiner - CORRECT ANSWER -a person who researches and summarizes a
property's title history
,title examination - CORRECT ANSWER -the process of reviewing the property's
ownership records to make sure the title is clear ( no legal problems)
title insurance policy - CORRECT ANSWER -insurance that protects the buyer or lender
if problems with the title come up after purchase
home inspection - CORRECT ANSWER -a professional check of a home's condition
before buying it
closing disclosure - CORRECT ANSWER -a document that shows all the final costs and
terms of the home loan and purchase
proration - CORRECT ANSWER -splitting certain costs ( like taxes or utilities) fairly
between buyer and seller at closing
title commitment - CORRECT ANSWER -document from a title company promising to
issue title insurance if certain conditions are meet
subrogation clause - CORRECT ANSWER -a part of insurance policy that lets the
insurance company take legal action to recover money from someone else who caused the loss
closing - CORRECT ANSWER -the final step in a real estate deal when the property
officially changes owners, and money and documents are exchanged
controlled business arrangement - CORRECT ANSWER -when companies involved in
real estate deal ( like a real estate agency and a title company) are owned by the same parent
company and refer business to each other --- this must be disclosed to the buyer
kickback - CORRECT ANSWER -an illegal payment or reward for referring business ( for
example, a real estate agent getting a secret money fro recommending a certain lender or
inspector )
,will - CORRECT ANSWER -a legal document who gets your stuff after you die
codicil - CORRECT ANSWER -a legal change or addition to a will
devise - CORRECT ANSWER -property ( usually real estate ) given to someone in a will
deed - CORRECT ANSWER -a legal document that transfers ownership of a property
from one person to another
covenant - CORRECT ANSWER -a promise written into a deed or other legal agreement,
often about how the property can or can't be used
restriction - CORRECT ANSWER -a rule or limit placed on how a property can be used,
often found in a deed or neighborhood agreement
reservation - CORRECT ANSWER -when a seller keeps a right to something ( like water
rights or an easement ) after selling the property
general warranty deed - CORRECT ANSWER -a deed that guarantees the buyer full
protection against any problems with the title, even from before the seller owned the property
special warranty deed - CORRECT ANSWER -a deed that only guarantees the title is clear
during the time the seller owned the property --- not before
bargain and sale deed - CORRECT ANSWER -a deed that transfers ownership without
guarantees about the title, but implies the seller has the right to sell
quitclaim deed - CORRECT ANSWER -a deed that transfers any ownership the seller has,
but with no guarantees--- often used between family or in low-risk situations
, gift deed - CORRECT ANSWER -a deed used to give property as a gift, without any
money exchanged
guardian's deed - CORRECT ANSWER -a deed used when a legal guardian sells property
on behalf of a minor or someone who can't manage their own affairs
sheriff's deed - CORRECT ANSWER -a deed given to the buyer of property sold at a
court- ordered sale, usually due to foreclosure
correction deed - CORRECT ANSWER -a deed used to fix a mistake in a previous deed
(like a typo or wrong name)
tax deed - CORRECT ANSWER -a deed given to someone who buys property at a tax sale
( because the previous owner didn't pay property taxes)
assemblage - CORRECT ANSWER -the process of combining two or more pieces of land
into one larger piece
sovereignty of the soil - CORRECT ANSWER -the idea that the government originally
owns all land before its granted to individuals
probate - CORRECT ANSWER -the legal process of handling a person's property after
they die, including paying debts and transferring ownership
abstract of title - CORRECT ANSWER -a summary of all legal records and documents
that show who has owned a property and any claims against it
mortgage - CORRECT ANSWER -a loan used to buy a home, the home is collateral,
meaning the lender can take it if the loan is not paid
