All of the following are acceptable evidence of an owner's title EXCEPT
A. a recorded deed
To serve as public notice, where is a deed recorded?
B. the county or, in some states, the town where the property is located
5 years ago, a lien was recorded against a parcel of property by a construction company. When the lien was recorded, a man was the owner of the property and a woman was an active partner in the construction company. The property is in county A, but the lien was recorded in county B. Now, the woman is trying to buy the property from the man. A title search in county A disclosed no liens against the property. Which of the following is TRUE?
B. the woman has actual notice of the lien but not constructive notice, because of the mistake in recording
A woman purchased property from a man. Shortly after closing, the woman discovered that there were serious flaws in the title that made it unlikely that the property could be resold in the future. What can she do now?
B. because the woman has accepted the deed, her only recourse is to sue the man under any covenants contained in the deed
The reason that deeds and liens and other claims are recorded is to give
A. constructive notice
A history of all recorded liens and encumbrances is revealed in the
D. abstract
The person who prepares a certificate of title is the
D. abstractor
Which of the following would be covered in a standard title insurance policy?
B. forged documents
A title insurance policy that protects the interest of a mortgagee is referred to as a(n)
C. lender's policy
What is an effect of the Marketable Title Act in the states in which it has been adopted?
B. limits the time beyond which title records must be searched
States that recognize the lender as the owner of the mortgaged property are known as
C. title theory states
A document that indicates that a loan has been made is referred to as a
A. promissory note
A woman defaults on her mortgage, and the lender forecloses. The lender's foreclosure suit is filed on March 15, and the sale is to be held on May 10. If the woman attempts to redeem the property on May 1, which of the following statements applies?
A. the woman is exercising her equitable right of redemption
A house is listed for $250,000. A man buys it for $230,000, with a 20% down payment. He borrows the balance on a fixed-rate mortgage at 6%. The lender charges 4 points. If there are no other closing costs involved, how much money does the man need at closing?
B. $53,360
Calculate down payment
$230,000 x 20% = $46,000
Determine points charge
$230,000 x 80% x 4% = $7,360
Total the 2 amounts
$46,000 + $7,360 = $53,360
One afternoon, a client calls a real estate broker. "My lender just told me that my note and mortgage is negotiable instrument," says the client. "What does that mean?" Which of the following would be the broker's BEST response?
B. "Don't worry. That means the mortgage can be sold by the lender, but you're not affected."
A deed of trust involves all of the following terminology EXCEPT
B. mortgagor
One state is a lien theory state. A buyer purchases property from a seller and gives him a mortgage as part of the purchase price. Therefore, the buyer is the borrower, and the seller is the lender. All of the following statements are correct EXCEPT
C. the buyer has given legal title to the seller
Where a trust deed is used, the lender is the
A. beneficiary
A mortgage company charges borrowers as 1.5% loan origination fee. A man buys a house for $210,000 and pays $50,000 in cash. He applies for a mortgage to cover the balance. What will the mortgage company charge as a fee if the asking price of the house was $235,000?
