#1
What is the primary purpose of a deed in real estate?
To transfer ownership of real property
ExplanationLegal document confirming property transfer.
#2
What is the purpose of a contingency clause in a real estate contract?
To allow the buyer or seller to cancel the contract under specific conditions
ExplanationContract cancellation under defined conditions.
#3
What is the role of a notary public in real estate transactions?
To witness and authenticate signatures on legal documents
ExplanationWitnessing and authenticating signatures.
#4
What is the role of a title insurance policy in real estate transactions?
To protect the buyer or lender against defects in the title
ExplanationProtection against title defects.
#5
What is the primary purpose of a survey in a real estate transaction?
To measure and map the boundaries of the property
ExplanationMeasuring and mapping property boundaries.
#6
Which type of property ownership allows multiple individuals to have an undivided interest with a right of survivorship?
Joint tenancy
ExplanationCo-ownership with survivorship rights.
#7
What does the term 'encumbrance' refer to in real estate law?
A restriction or limitation on the property's title
ExplanationLimitation on property title.
#8
What does the term 'mortgagee' refer to in real estate financing?
The lender who provides the mortgage loan
ExplanationLender providing mortgage loan.
#9
What is the primary purpose of the Truth in Lending Act (TILA) in real estate transactions?
To protect consumers by requiring clear disclosure of loan terms and costs
ExplanationConsumer protection through loan disclosure.
#10
What is the primary purpose of an easement in real estate?
To grant someone the right to use another's property for a specific purpose
ExplanationGranting usage rights on another's property.
#11
What is the significance of the 'chain of title' in real estate law?
The history of property ownership as documented in public records
ExplanationRecorded history of property ownership.
#12
In real estate contracts, what is the 'time is of the essence' clause intended to emphasize?
The critical importance of adhering to specified deadlines
ExplanationEmphasis on adhering to deadlines.
#13
What is the purpose of a title search in the real estate transaction process?
To confirm the property's legal ownership and identify any liens or encumbrances
ExplanationVerification of ownership and liabilities.
#14
In real estate, what is the significance of the 'due diligence' period?
The period during which the buyer investigates the property before finalizing the purchase
ExplanationBuyer's investigation before purchase.
#15
What is the primary purpose of an escrow account in real estate transactions?
To ensure the buyer's earnest money is safe
ExplanationSecurity for buyer's earnest money.
#16
What does the term 'depreciation' refer to in real estate appraisal?
A reduction in property value due to wear and tear
ExplanationDecrease in property value from wear.
#17
In real estate, what is the purpose of a land survey?
To measure and map the boundaries of a property
ExplanationBoundary measurement and mapping.