header bg

Download REALESTATE Prep app now

Scan QR code or get instant email to install app

Question:

Recording is not required for a ____

A grant deed.
explanation

A grant deed is valid whether or not it is recorded.

Explore more similar questions
Take more free practice tests for otherReal Estate topics with our real estate practice exam now!

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Related Questions

Chain of title refers to ____

an exact history of conveyances and encumbrances affecting title to a property.

This is an example of one question delivering the answer to a different question. Another question in this section defines the chain of title as a written summary of public records.

The original cost basis on a duplex purchased by Mr. Brown was $750,000. The tax assessor stated the breakdown of values to be 80% improvements and 20% land. Over the first five years, Mr. Brown depreciated the improvements at a rate of 2% each year. Mr. Brown then hired a licensed contractor to install a swimming pool at a cost of $50,000. Once the pool was completed, how much will the adjusted cost basis in the property be?

b. $740,000.

Depreciation can only be taken on the improvements (80%) portion of the purchase price. In this example: 80% x $750,000 = $600,000 (improvement portion of the original basis). $600,000 x 0.02 (2%) = $12,000 per year x 5 years = $60,000 (accrued depreciation). Then, subtract the accrued depreciation from the original cost basis. $750,000 (original cost basis) - $60,000 (accrued depreciation) = $690,000 (depreciated cost basis). Finally, add $50,000 for the new swimming pool improvement + $690,000 (depreciated cost basis) = $740,000 (adjusted cost basis).

A standard policy of title insurance covers ____

incompetence of any of the parties.

Only the American Land Title Association (ALTA) policy will give additional coverage, such as for encroachments and prescriptive easements. Incompetence of any of the parties is covered by both standard and extended policies.

Which is not true of a tenancy in common?

A tenant in common may not will their interest in the property to others on their death.

All other answer selections are true of a tenancy in common, as distinct from a community interest such as joint tenancy. However, a tenant in common may will their interest in the property to others on their death.

A property in probate is appraised at $960,000. At auction, the highest bid is $900,000. For the court to consider any other offer, it would have to be at least ____

$945,500.

A probate court will only consider a subsequent bid that is raised by an amount equal to 10% of the first $10,000 ($1,000), plus 5% on the balance ($44,500).

Which of the following is an ad valorem tax?

Real estate tax.

Ad valorum is the tax assessor’s valuation for real estate.

Which of the following would be an incorrect amount for documentary transfer tax stamps?

$111.00.

Transfer stamps come in multiples of $0.55.

On April 1, 2020, an escrow agent opened a preliminary title report order for the sale of a property. The seller purchased the home in 1998, financing it with a Federal Housing Administration (FHA) loan on which they are currently making payments. A preliminary title report dated April 5, 2020 will ____

show a deed of trust with the seller as trustor.

On April 5th the seller will still be the owner and the trustor on the Federal Housing Administration (FHA) loan. Thus, answer choice B is the only correct answer.

Recorded title to a parcel of real property is vested in the name of Jennifer Baker, a single woman. After her marriage to Colin Matthews, she executes a deed to the property only in the name of Jennifer Matthews, a married woman. The discrepancy in the grantor’s name is:

a cloud on the title.

An inconsistency in the names of the title holder and grantor on the deed will require clarification, creating a cloud on title until this has been accomplished.

The instrument used to transfer title to personal property is the ____

bill of sale.

A bill of sale is used to transfer personal property.

Which of the following would most likely result in the termination of a real estate sales escrow?

The mutual agreement of the buyer and the seller.

Escrow can be cancelled by mutual agreement between both principals, not unilaterally by one party. The broker is not a party to the escrow, therefore, they cannot authorize termination. In the event of the death of either party, their estate is still responsible for performing.