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Real Estate Title Transfers Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. What is an encumbrance?

Question 2 2. Sue bought a house. Two years later, she finds that the title was clouded and she may or may not own the house. How will the title insurance help her?

Question 3 3. What is a home warranty program?

Question 4 4. What is a builder's warranty in real estate?

Question 5 5. What is the minimum real estate ownership period to qualify for long term capital gains tax rates?

Page 2

Question 6 6. How much in capital gains can a married filing jointly couple exclude from taxation?

Question 7 7. Dan received a warranty deed and discovers after the conveyance that there is a lien on the property that was not identified on the deed. Which covenant has been violated?

Question 8 8. Which of the following covenants warrants that the grantee is getting the property that the deed purports to be giving her?

Question 9 9. A closing is also referred to as:

Question 10 10. A document that helps to secure a lender's rights to real estate is called:

Page 3

Question 11 11. Legal escrow can be used in cases of:

Question 12 12. When you buy a home, the county treasurer usually requires an escrow account for your property taxes.

Question 13 13. What does REO stand for?

Question 14 14. It's 2015 and Ben just finished a short sale on his property resulting in the bank forgiving a $50,000 deficiency. What should Ben be worried about?

Question 15 15. The place where real estate documents are recorded may be called:

Page 4

Question 16 16. Other than deeds, what is another type of document may be recorded?

Question 17 17. A _____ action is a special lawsuit commenced to clear a title.

Question 18 18. A(n) _____ title is a title that has a substantial defect such that a reasonably prudent purchaser will not accept it.

Question 19 19. Elizabeth dies without a will, unmarried, without children and no relatives. Who gets her property?

Question 20 20. A person who dies with a valid will is said to have died ____, while a person who dies without a valid will is said to have died ____.

Page 5

Question 21 21. How is homeowner's insurance typically paid at closing?

Question 22 22. Which of the following fees are almost always paid by the seller?

Question 23 23. Which of the following is the best way to minimize acquiring a property at foreclosure that has title defects or encumbrances that will not be wiped out by the foreclosure?

Question 24 24. ____ redemption occurs after a foreclosure sale while ____ redemption happens before.

Question 25 25. Aside from executing a validly formatted deed, what else is required for the conveyance of the property to be effective?

Page 6

Question 26 26. The _____ gives a deed, and the _____ receives it.

Question 27 27. Before accepting a deed in lieu of foreclosure, a bank will generally require a borrower to do all of the following except what?

Question 28 28. What may a bank require before it agrees to accept a deed in lieu of foreclosure?

Question 29 29. A hindrance to a title such as a lien or judgement is considered:

Question 30 30. An example of a cloud on a title is:

Real Estate Title Transfers Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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