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96 Cards in this Set
- Front
- Back
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What is the definition and purpose of title insurance? |
Title insurance is the entire process by which title to the real property is searched by a chain of title to establish the current ownership, encumbrances, easements, restrictions, etc. that currently are of record on that specific property, thus allowing the title company to issue insurance policies for the protection of the insured. |
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What are the limitations of the warranty that is given by the grantor of a deed given in fulfillment of real estate contract? |
The grantors warranties extend only to the date of the contract except for those encumbrances placed on the premises by the grantor. The warranty does not apply to any title, interest, or encumbrance arising because of the actions of the purchaser in the contract, nor does it apply to any taxes, assessments or other charges levied or due subsequent to the contract date. |
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List the additional information which needs to be included in the elegance description for a condominium transaction according to the Washington Condominium Act |
The description of a unit which sets forth the name of the condominium, the recording number for the declaration, the county in which the condominium is located and the identifying number of the unit is a sufficient legal description of that unit, and all rights, obligations and interests appurtenances to that unit which were created by the declaration or bylaws. |
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Define the Statute of Frauds |
The Statute of Frauds is a law that requires certain contracts to be in writing and signed. The written requirement is intended to prevent fraudulent claims. To be enforceable, any agreement for the purchase and sale of real estate, and any agreement authorizing or employing agents or brokers to sell or purchase real estate for a commission, must be in writing. |
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Name five (5) documents that a Limited Practice Officer cannot prepare. |
Reconveyance Partial reconveyance Lease Assignment of Lease Purchase and Sale Agreement Real Property (Seller) Disclosure Regulation Z Disclosure RESPA Disclosure Documents |
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One of the requirements of APR12 is that the closing officer shall advise the parties of the limitations of the services rendered pursuant to the rule. Name the additional five (5) written disclosures to be given. |
1. That the closing officer is not acting as an advocate or representative of either of the parties. 2. That the documents prepared by the closing officer will affect the legal rights of the parties. 3. That the parties interests in the documents may differ. 4. That the parties have a right to be represented by lawyers of their own selection. 5. That the closing officer cannot give legal advise as to the manner in which the documents affect the parties. |
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What is the definition of Power of Attorney? |
The granting of a power to one individual to act for another as specifically stated within the document authorizing such action. |
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What is the definition of Usury? |
Usury is defined as charging a rate of interest in excess of that permitted by law. Any rate of interest not exceeding the higher of 12% per annum or four percentage points above the equivalent coupon issue yield of the average bill rate for 26 weeks treasury bills as determined at the first bill market auction conducted during the preceding calendar month, agreed to in writing by the parties to the contract shall be legal. |
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Name the type of ownership interests that may be held in a cooperative apartment |
Leasehold interest under a proprietary lease in the apartment, and a stockholder interest in the cooperative. |
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In the characteristics of estates in land, what do future interests include? |
Reversions Right of entry Executor's interest Possibility of reverters Remainders (both vested and contingent) |
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Define the requirements of legal competency for execution of valid legal instruments |
Must be the age of majority. Must be sane and legally competent. |
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Define Property |
The rights or interests a person has in the thing he owns. The rights include the right of possession, to use, to encumber, to transfer, and to exclude, commonly called the 'bundle of rights'. |
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Define Personal Property |
A right or interest in something that is not land or anything permanently attached to the land. It maybe an interest in the land such as a lease or chattel. Products of the soil (crops) become personal property when severed (harvested) from the land. |
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Define Real Property |
All land and appurtenances to the land including buildings, fixtures, fences and improvements erected upon or affixed to the same. Trees while attached are real property |
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What are the five (5) basic rights inherent in a freehold estate? |
Indefinite duration Alienable Undisturbed possession Issues and profits Inheritable |
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What are the different ways to hold title (estates in land)? |
Fee simple absolute Fee simple defensible Life estate Future interests |
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What are the four (4) factors inherent in a joint tenancy ownership of land? |
Unity of time Unity of title Unity of interest Unity of possession |
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Name various legal entities that can hold title to real property. |
Corporations Partnerships Joint ventures Massachusetts trust Limited liability company Federal, state & local governments Non-profit organizations |
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What are the laws that provide for condominium development? |
Horizontal Property Regimes Act Washington Condominium Act |
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Name seven (7) types of easements |
Access Utility Right of Way Party Wall Aviation Drainage Parking Strip and Parking |
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Name the three (3) ways a person or institution can hold title for the benefit of others (Fiduciaries) |
Personal Representative Trustee Guardian Receiver Custodian |
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What are (2) general categories of easements? |
Appurtenant In Gross |
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What are three (3) examples of common license usage of land belonging to others? |
Parking Admission ticket Temporary access use Advertising signs Restaurant's usage Camping privileges |
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Define Covenant |
A written agreement or promise of two or more parties by which either pledges to perform or not to perform specified acts on a property -or- which specifies certain uses or non-uses of the property. |
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Define Restriction |
A restriction is imposed upon the use of land by private persons as either a covenant or condition. |
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Define Condition |
A condition is a provision in an instrument of conveyance that will cause ownership of an interest to terminate if the property is put to a prohibited use. |
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Define Reservation |
The creation, on behalf of the grantor, a new right issuing out of the thing granted. Title to all the property passes to the grantee, except for a use if reserved by the grantor (i.e., life estate, mineral rights) |
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Name the four (4) types of timber and state whether they are real or personal property. |
Green timber - Real Cut & down timber - Personal Standing timber - Real Salvage timber - Can be both |
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What are the three (3) basic water rights in the State of Washington? |
Riparian rights Appropriation rights Littoral rights |
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List three (3) types of liens |
Assessments Taxes Materials and/or labor liens Judgments Mortgages and/or Deeds of Trust Inheritance Tax Federal Income Tax Liens |
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Define Fixture and list three (3) items that could be fixtures |
An article which was once personal property but has been so affixed to the real estate that it has become real property.
Stove Bookcases Plumbing |
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What is the purpose of APR12? |
The purpose of this rule is to authorize certain lay persons to select, prepare, and complete legal documents incident to the closing of real estate and personal property transactions, and to prescribe the conditions of and limitations upon such activities. |
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Recite the (4) certification requirements for the Limited Practice Officer. |
Be at least 18 years of age. Be of good moral character. Satisfy the examination requirements established by the Board. Execute under oath and file with the Board two copies of the application, one of which shall be in the applicant's handwriting. |
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What are the (3) continuing certification requirements for a Limited Practice Officer? |
Continuing education. Financial responsibility. Pay the annual fee. |
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Name the three (3) types of deeds used in Washington State and provide the statutory words of conveyance for each. |
Statutory Warranty Deed: conveys and warrants
Bargain and Sale Deed aka Special Warranty Deed: conveys
Quit Claim Deed: conveys and quit claims |
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What are the eight (8) elements which must be present for a valid conveyance by Deed? |
Proper name of Grantor (with status) Proper consideration Words of conveyance Proper name of Grantee (with status) Valid legal description Executed by Grantor Acknowledged Delivery and acceptance |
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List the different forms of consideration recitals |
Ten dollars and other valuable consideration
Love and Affection
A Deed of Gift
Division of Dissolution of Marriage
Assumption of indebtedness |
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List the four (4) basic types of legal descriptions |
Government surveys Recorded plats Metes and bounds Condominium |
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What is the difference between homeowners insurance, flood insurance, and title insurance? |
Homeowners insurance offers the maximum protection to the insured against loss due to structural damage or personal liability. Flood insurance offers the maximum protection to the insured from loss due to flood waters. Title insurance offers the maximum protection the the insured from adverse title claims and risks. |
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List the release documents associated with a Deed of Trust, Real Estate Contract, & Mortgage |
Deed of Trust - Reconveyance Real Estate Contract - Statutory Warranty Fulfillment Deed Mortgage - Satisfaction of Mortgage |
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What is APR an abbreviation for? |
APR is an abbreviation for Admission to Practice Rule |
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Currently how many continuing education credit hours must a Limited Practice Officer complete each year? |
At this time, a Limited Practice Officer must complete a minimum of 10 continuing education credit hours each year from courses approved by the Limited Practice Board. The required credit hours must include 8 general and 2 liability credit hours. |
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What is the Right of Rescission? |
In some but not al transactions covered by the Truth in Lending Act, the borrower has three business days after the disclosure statement is delivered or a Notice of Right to Cancel is given, whichever occurs last, to change his/her mind. This is called a 'right of rescission.' |
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Who can be listed as a Trustee on a Deed of Trust? |
Bank or Savings & Loan Washington Corporation Title Insurance Company Attorney licensed in WA Agency of the state or federal government |
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List (3) common clauses in Promissory Notes |
Accounting clause Acceleration clause Recital of security Renegotiation of interest rate Penalty interest Late charges |
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What are the (5) required elements of a negotiable Note? |
Unconditional written promise from one person to another. Be signed by the maker. Contain an unconditional promise to pay a sum certain and no other promises. Be payable to order or to bearer. Be payable on demand or at a definite time. |
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What are the (8) requirements for valid notary acknowledgments? |
For a valid notary acknowledgment the notary must use the proper form; must witness the signature; must know the signers or obtain acceptable identification; must be licensed by the State; must be a disinterested person; the notary seal must be affixed; the parties must acknowledge they signed as their free and voluntary act; and a corporate acknowledgment must state that the officer signing had the authority to act for the corporation. |
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What is the difference between a Deed of Trust and a Mortgage? |
A Deed of Trust is a three party instrument with a trustee technically holding title to the land together with the power to sell if the secured debt is not paid as it becomes due. A non-farm, non-agricultural property may be foreclosed by a trustee's sale, which is a non-judicial procedure. A Mortgage is a two party instrument which requires a judicial foreclosure with a redemption period. |
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What is the significance of standard of care? |
Standard of care is the public accepted manner in which all Limited Practice Officers are expected to perform. APR 12 does not establish ethics or standard of care. Under Washington State case law the standard of care which applies to a person who selects, prepares, and completed a legal document is the standard of care applicable to an attorney at law or perfection. |
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A title insurance policy:
A. Is proof of title B. Indemnifies the holder against some (but not all) of the possible defects in title C. Both A and B D. Neither A or B |
B. Indemnifies the holder against some, but not all, of the possible defects in title |
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The term "valuable consideration" can include which of the following?
A. Anything movable of monetary value. B. Expert services for which a fee could be charged. C. Both A and B D. Neither A nor B |
C. Anything movable of monetary value and expert services for which a fee could be charged |
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Riparian rights relate to the use and ownership of water in:
A. Rivers and streams B. Bays and arms of the sea C. Subterranean cavities D. Navigable rivers |
A. Rivers and streams |
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In a metes and bounds description:
A. Boundaries are established on the basis of actual distances. B. The boyndary must return to the point of beginning. C. The method can be highly complicated. D. All of the above |
D. All of the above |
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Even though an area is zoned for single-family dwelling units only, some commercial use may be permitted if:
A. The commercial use was a pre-existing non-conforming use. B. A variance is authorized by the zoning board for a new non conforming use. C. Both A and B D. Neither A nor B |
C. Both A and B |
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Emblements are:
A. Fixture and trade fixtures B. Monetary interest and leasehold estates C. Water and mineral rights D. Crops produced annually by labor and industry |
D. Crops produced annually by labor and industry |
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A valid and binding agreement for sale of real estate must:
A. Include the property tax parcel number B. Be bound by a cash deposit of earnest money C. Include a legal description of the property D. All of the above |
C. Include a legal description of the property |
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The Veterans Administration:
A. Guarantees lenders against the loss caused by the borrowers default on a loan B. Insures loans C. Normally provides money to eligible veterans for the purchase of homes D. Pays all closing costs |
A. Guarantees lenders against the loss caused by the borrowers default on a loan |
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Involuntary alienation of an estate means:
A. The estate cannot be transferred without the consent of the owner B. Aliens are forbidden to own estates in fee simple in Washington C. The ownership of estates may be transferred by operation of law D. No one can be compelled to transfer title without consent |
C. The ownership of estates may be transferred by operation of law |
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Competent parties are essential for the validity of a real estate PSA. In addition, which of the following is required in order for the agreement to be valid?
A. Closing date B. Recording C. Acknowledgement |
A. Closing date |
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When customer funds are placed in an IOLTA, the escrow agent is:
A. Free of personal liability for the amount of the deposit because of the state statutes governing trust account liability B. Free of liability for any loss because of the IOLTA provisions C. Only liable for an amount equal to the agents fidelity bond D. Liable under the law for the full amount thereof |
D. Liable under the law for the full amount thereof |
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The STATUTE OF FRAUDS involves contracts which must be in writing to be enforceable. Which of the following falls within the Statute of Frauds? I. A contract for the sale of real property II. A contract for the sale of an interest in real property III. A contract for the leasing of real property for two years
A. I only B. I and II C. I and III D. All of the above |
D. All of the above |
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All of the following are true regarding metes and bounds except: A. Legal description by metes and bounds is often used when the subject property is not included in a duly recorded map B. The primary advantages of them are brevity, simplicity, and uniform interpretation C. They are valid even if the property could be described otherwise D. They are sometimes used because of the peculiar shapes of the subject properties |
D. They are sometimes used because of the peculiar shapes of the subject properties |
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Which is true concerning apartment ownership?
A. Ownership in a cooperative apartment usually requires purchase of shares of stock in the coop association B. Individual apartments in a condo are conveyed and are financed as if they were single family dwellings on separate pieces of land C. Both A and B D. Neither A nor B |
A. Ownership in a cooperative apartment usually requires purchase of shares of stock in the coop association |
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In the states such as Washington which practice the lien theory in mortgages, title to the real property which is encumbered is in the: A. Mortgagee B. Vendor C. Mortgagor D. Trustee |
C. Mortgagor |
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What is a rescission of a contract? A. A ratification of a contract by all parties B. A return to the situation as it was before the contract was executed C. A revision in the terms of a contract D. A transfer of responsibility from one of the parties to the contract to an interested third party |
B. A return to the situation as it was before the contract was executed |
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Land descriptions in Washington, under the governmental survey, use: A. The NW principal meridian B. The base line C. Both A and B D. Neither A nor B |
B. The base line |
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In order to be a valid and enforceable conveyance, which of the following are needed? I. Date II. Acknowledgment III. Title exceptions IV. Signature of the grantor
A. II, III & IV B. II & IV C. I & II D. III & IV |
B. Acknowledgment and Grantor signature |
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Which of the following tests would determine if personal property has become a fixture/real property? A. An adaptation of the item to the premises B. An agreement between the parties involved C. The intention of the parties D. All of the above |
D. All of the above |
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An oral contract for the sale of real estate is generally: A. Void B. Unenforceable C. Illegal D. Caveated |
B. Unenforceable |
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Which statement about building codes is true? A. They have been standardized throughout the US B. They establish minimum standards in design, structural systems and construction materials C. Both A and B D. Neither A nor B |
B. They establish minimum standards in design, structural systems and construction materials |
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Truth in Lending statutes require disclosure of: A. The finance charge as an APY B. The number, amount, and due date of all payments C. The method of computing unearned finance charges D. All of the above |
A. The finance charge as an APY |
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A real estate PSA, unless otherwise provided: A. Vests equitable title in the buyer when it has been signed by both parties B. Is merged into a Deed at closing C. Both A and B D. Neither A nor B |
B. Is merged into a Deed at closing |
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Which of the following best describes the covenant of quiet enjoyment? A. The Grantor promises to obtain and deliver any instrument needed to make the title good B. The Grantor guarantees that if the title fails in the future, the grantee will be compensated C. The Grantor warrants ownership with the right to convey title D. The Grantor assures that the title is good against the title claims of third parties |
D. The Grantor assures that the title is good against the title claims of third parties |
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A buyer is qualified to obtain an FHA loan for the purchase of a new home. From which of the following may the loan be obtained? A. Federal Housing Administration b. Federal National Mortgage Association C. A qualified lending institution D. A federal home loan bank system |
C. A qualified lending institution |
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Interest in a real estate mortgage is usually paid: A. In arrears (end of each month or period for which interest is due) B. In advance C. As the borrower is able to pay D. When the loan is due |
A. In arrears (end of each month or period for which interest is due) |
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A due in sale clause, if the mortgaged property is sold, allows the lender the opportunity to: A. Accept or reject the buyer as a substitute borrower B. To eliminate low interest rate loans C. Both A and B D. Neither A nor B |
C. Both A and B |
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A permanent reference marker may be:
A. Any physically identifiable object B. A concrete marker or iron pipe C. Both A and B D. Neither A nor B |
D. Neither A nor B |
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The Statute of Frauds, as applied to real estate contracts, require that: A. The contract, in order to be enforceable, must be in writing B. The contracts must be signed by the party to be charged thereby C. Both A and B D. Neither A nor B |
C. Both A and B |
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When a property fails to sell at a trustees sale for an amount sufficient to satisfy the debt, the beneficiary may sue for:
A. A deficiency judgment B. A judgment by default C. A Deed in lieu of foreclosure D. None of the above |
D. None of the above |
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A voidable contract is one which: A. Was valid at the time it was executed but for some reason cannot be proved or judgment obtained by either or both parties B. Has no legal effect since it is really not a contract C. Contains all legal elements essential to its existence D. Is valid and enforceable on its face but may be property rejected by one of the parties |
D. Is valid and enforceable on its face but may be property rejected by one of the parties |
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If a contract is signed without first reading, the contract could later be broken on the basis of: A. Mistake B. Ignorance C. Both A and B D. Neither A nor B |
D. Neither A nor B |
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A person holding title to real property in severalty would most likely have: A. A life estate B. An estate for years C. Ownership in common D. Sole ownership |
D. Sole ownership |
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The absence of duress, menace, and undue influence is a requirement of: A. Reality of consent B. Lawful objective C. Competent parties D. Sufficient consideration |
A. Reality of consent |
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An existing option to purchase:
A. May only be exercised by the purchaser B. Is of indefinite duration C. May only be exercised but the seller D. Requires he sellers consent to be exercised by the purchased |
A. May only be exercised by the purchaser |
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A HUD-1 Settlement Statement is required by: A. FIRPTA B. Reg Z c. APR 12 D. RESPA |
D. RESPA |
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The designation of land by an owner to some public use, together with acceptance for such use by or on behalf of the public, constitutes:
A. Dedication B. Prescription C. Condemnation D. Eminent Domain |
A. Dedication |
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Which of the following is not true of a mechanics lien? A. A contractor has the right to file a lien for an unpaid bill for work ordered by the owner B. It is based on the "enhancement of vale" theory C. It does not apply to a subcontractors claims for work done D. It must be enforced within a certain period of time |
B. It is based on the "enhancement of vale" theory |
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An option contract differs from a real estate PSA in that: A. The option needs consideration to support it B. The option need not be consummated C. An option automatically renews itself D. An option is revocable by the option or |
B. The option need not be consummated |
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To convey an existing appurtenances easement by a Deed, the Grantor must: A. Convey the easement by a separate document B. Reserve the easement C. Include the easement in the face of the Deed D. Do nothing |
D. Do nothing |
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The words of conveyance in a Special Warranty Deed are: A. Specially warrants and conveys B. Conveys with limited warranties C. Conveys with stated warranties D. Bargains, sells and conveys |
D. Bargains, sells and conveys |
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A lien against cut timber can be created and perfected by a: A. UCC Financing Statement B. Deed of Trust C. Bill of Sale D. Security Agreement and UCC |
D. Security Agreement and UCC |
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Mineral rights include all of the following except: A. Gravel B. Water in wells C. Oil and natural gas D. Gold and silver |
D. Gold and silver |
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A Government Lot is part of what type of legal description? A. Metes and Bounda B. Plat of federal land C. Reference to a recorded play D. Rectangular survey |
D. Rectangular survey |
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Deeds are acknowledged to: A. Make them legal B. Enable them to be recorded C. Establish legal capacity D. Terminate adverse interests in the property |
A. Make them legal |
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A LPO who observed repeated and material violations of the rules of professional conduct by another LPO is not required to report the violations to the LPO board.
True or false? |
True |
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A satisfaction of judgment must be filed with the county recorder.
True or false? |
False They're filed, not recorded |
