Chapter 5
When land increases due to waterborne rock, sand, or soil, this is known as ________.
Accretion
A promise to issue a title policy contingent on certain actions is known as a _____________.
Title Commitment
What is the primary purpose of the E-Sign Act?
To authorize electronic signatures and agreements
True or False: A binder in a real estate sales contract is a final agreement between the buyer and seller
This is the term for the legal process of transferring property ownership from one person to another.
Conveyance
What is the legal term for land that is transferred involuntarily by the government?
Forfeiture
This system refers to a method of registering land title and ownership in a public registry, and it is called the ________."
Torrens System
True or False: The statute of frauds requires that transfers of real estate ownership be in writing and signed to be enforceable in court.
True
What does the phrase "Time is of the essence" mean in a contract?
It means that deadlines and timelines specified in the contract are strict and must be followed exactly
What are the five covenants and warranties in a warranty deed?
Seisin, quiet enjoyment, against encumbrances, further assurance, warranty forever
The process in which a person gains title to land by occupying it for a long period without the owner's consent is called ___________.
Adverse Possession
Which of the following is NOT one of the four major U.S. title insurance underwriters: Fidelity National Financial, Old Republic, Stewart Title, or State Farm?
State Farm
A legal term for a failure to perform a contract without legal excuse is called a _____________.
Breach of contract
A type of contract that allows a buyer to purchase property in the future, usually with a set price, but without an obligation to do so is called ______.
Option contract
Which type of real estate insurance protects against defects in title and other ownership issues?
Title Insurance
What is the term used when a smaller item is attached to larger property, making it a fixture?
Annexation
In a marketable title, what does it mean if a title is "free from reasonable doubt"?
The ownership of the land is clear and uncontested
If one party to a contract dies, what happens to the contract if it could only be performed by the deceased person?
a) The contract is voidable
b) The contract is discharged
c) The contract becomes binding on heirs
d) The contract is extended
b) The contract is considered discharged
In an installment contract, the ___________ holds the title to the property until full payment is made.
Seller
A person who dies without a will is said to have died ____________.
Intestate
If someone transfers their land rights to a government body, what is this called?
Public Grant
True or False: Title insurance policies only cover damages caused by defects in the chain of title before the policy is issued
False - (Enhanced policies cover more than just pre-existing defects)
What is the difference between a void contract and a voidable contract?
A void contract is unenforceable from the start, while a voidable contract is valid until one party chooses to void it
What is the role of a "qualified intermediary" in a tax-deferred exchange?
a) To sell the property on behalf of the buyer
b) To hold the funds
c) To prepare the closing documents
d) To provide legal advice
b) A qualified intermediary holds the funds during a 1031 exchange to ensure the tax-deferred nature of the transaction
True or False: A quitclaim deed provides the greatest protection to the grantee
False