#1
Which legal document is used to transfer property title from one party to another?
Warranty deed
ExplanationWarranty deed is used to transfer property title with a guarantee of clear title.
#2
In real estate transactions, what does 'closing' refer to?
The transfer of ownership from seller to buyer
ExplanationClosing marks the legal transfer of property ownership.
#3
What is the primary purpose of a title search during a property transfer?
To identify any liens or encumbrances on the property
ExplanationTitle search identifies any financial claims or restrictions on the property.
#4
What does the term 'chain of title' refer to in property law?
The history of property ownership rights
ExplanationChain of title traces the historical ownership of a property.
#5
What is the difference between a warranty deed and a quitclaim deed?
A warranty deed guarantees clear title, while a quitclaim deed makes no such guarantee.
ExplanationWarranty deed ensures clear title, whereas quitclaim deed does not.
#6
What role does a title insurance policy play in real estate transactions?
To protect the buyer against any defects or issues with the property title
ExplanationTitle insurance safeguards the buyer from title-related problems.
#7
What is the significance of a property survey in the title transfer process?
To identify any encroachments or boundary disputes
ExplanationProperty survey detects boundary violations or encroachments.
#8
Which of the following is NOT typically included in a property title?
Mortgage lender's contact information
ExplanationMortgage lender's contact details are not part of the property title.
#9
What does 'cloud on title' refer to in property law?
An issue with a property title that affects its marketability
ExplanationCloud on title is an issue affecting the property's saleability.
#10
What is the purpose of a deed of reconveyance in a mortgage transaction?
To release the property from the lien created by the mortgage once the debt is fully repaid
ExplanationDeed of reconveyance removes the mortgage lien after full repayment.
#11
In the context of property title transfer, what does 'adverse possession' refer to?
A method of acquiring title to land by occupying it openly, continuously, and hostilely for a statutory period
ExplanationAdverse possession is acquiring land through open, hostile occupation.
#12
Which legal principle states that a person cannot give what they do not have, particularly concerning property conveyance?
Doctrine of nemo dat quod non habet
ExplanationDoctrine of nemo dat quod non habet asserts one cannot transfer what they don't own.