Real Estate License Property and Ownership Laws 5

Question 1

A cloud on title is best described as:

Accepted Answer

Any claim or encumbrance that may impair the owner's title

Answer

A cloud on title is any document, claim, or encumbrance that could invalidate or impair title.

Question 2

Title insurance protects the policyholder against:

Accepted Answer

Defects in title that existed before the policy date

Answer

Title insurance covers losses from title defects that existed but were undiscovered before the policy date.

Question 3

A landowner grants a utility company the right to run power lines across the property. This is most likely an:

Accepted Answer

Easement in gross

Answer

An easement in gross benefits an individual or entity rather than an adjacent parcel of land.

Question 4

Which type of deed offers the grantee the greatest protection by warranting against all defects in title?

Accepted Answer

General warranty deed

Answer

A general warranty deed provides the broadest protection, warranting title against all defects.

Question 5

The recording of a deed in the public records primarily serves to:

Accepted Answer

Give constructive notice of the owner's interest

Answer

Recording a deed gives constructive notice to the public of the owner's interest in the property.

Real Estate License Practice Test