Real Estate Law & Transactions Flashcards
7 cards from real NALA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Real Estate Law & Transactions flashcards as text
What is the legal effect of a 'time is of the essence' clause in a real estate purchase contract?
Answer: It makes contract deadlines strictly enforceable and breach allows termination
A 'time is of the essence' clause makes contractual deadlines strictly binding, so missing a deadline constitutes a material breach allowing the non-breaching party to terminate.
Which type of deed provides the LEAST protection to the grantee?
Answer: Quitclaim deed
A quitclaim deed conveys only whatever interest the grantor may have without any warranties, giving the grantee the least protection against title defects.
Under the Statute of Frauds, which element is generally NOT required for a valid real estate contract?
Answer: Notarization of signatures
The Statute of Frauds requires real estate contracts to be in writing and signed but does not require notarization, which is typically required only for deeds to be recorded.
A legal assistant is reviewing a title commitment and sees a Schedule B-I exception for 'rights of parties in possession.' This most likely refers to:
Answer: Tenants or other occupants whose rights were not discovered by survey or record search
Rights of parties in possession is a standard exception that protects the insurer from claims by tenants or occupants whose interests do not appear in the public record.
Which of the following best describes a 'purchase money mortgage'?
Answer: A mortgage given by the buyer to the seller as part of the purchase price
A purchase money mortgage is one given by the buyer to the seller (or a third-party lender) as part of the consideration for the real property being purchased.
What is an 'abstract of title' used for in a real estate transaction?
Answer: To provide a condensed history of all recorded instruments affecting title to a property
An abstract of title is a chronological summary of all recorded documents—deeds, mortgages, liens, judgments—that affect title to the property.
In a 1031 like-kind exchange, what is the maximum number of calendar days a taxpayer has to identify replacement property after the sale of the relinquished property?
Answer: 45 days
Under IRC §1031, the taxpayer must identify potential replacement properties within 45 days of the transfer of the relinquished property.