Deed Of Trust: How Well Do You Know About Real Estate? Trivia Quiz

The purpose of verifying the buyer's and seller's identification is to prevent or deter fraud. By confirming the identities of both parties involved in a transaction, it reduces the risk of fraudulent activities such as identity theft, impersonation, or illegal transactions. This verification process helps ensure the authenticity and integrity of the transaction, providing a higher level of security and trust between the buyer and seller.

In Maryland, a customary title search will indeed span 60 years. This means that when conducting a title search for a property in Maryland, the search will typically go back 60 years to examine the chain of ownership and any potential issues or liens on the property. This allows for a comprehensive review of the property's history and helps ensure that the current owner has a clear and marketable title.

A Purchase Money Mortgage (PMM), also known as a "take back" mortgage, is a type of financing where the seller of a property provides a mortgage to the buyer to cover part of the purchase price. This means that instead of the buyer obtaining a loan from a bank or other financial institution, the seller acts as the lender. The buyer makes regular mortgage payments to the seller until the loan is fully paid off. Therefore, the statement "With a Purchase Money Mortgage (PMM) also called a 'take back' mortgage, the seller finances part of the selling price sold to the buyer" is true.

Mary, as the trustor, has the ability to make changes to a revocable trust. This means that she can modify the terms of the trust, including selling the property that was transferred into the trust. Therefore, it is possible for Mary to make changes to the revocable trust and sell the property to Tom one year later.

Churches are exempt from transfer taxes, meaning they are not required to pay any tax when transferring title to real estate. This exemption is typically granted due to the religious and non-profit status of churches, which allows them to receive certain tax benefits and exemptions. Therefore, the correct answer is 0%.

The correct answer is that the name, address, and license number of the TPIC (Title Insurance Producer Independent Contractor) and TIP (Title Insurance Producer) must be recorded on the mortgage or deed of trust. This information is important for legal and regulatory purposes, as it helps to identify and verify the individuals involved in the transaction. Including this information ensures transparency and accountability in the mortgage or deed of trust process.

Race-notice is a legal concept that determines the priority of conflicting interests in real estate transactions. It means that the first person to record their interest in the property will have priority over any subsequent interests, as long as they had no knowledge of the subsequent interest at the time of recording. This is because recording serves as notice to the public of a person's claim on the property. Therefore, the correct answer is "first to record has first priority."

The "effective date" on the title commitment is shown on Schedule A. Schedule A typically contains the basic information about the title commitment, including the effective date, the parties involved, and a description of the property. It is the section of the title commitment that provides the essential details and sets the foundation for further examination and analysis of the title.

A military power of attorney is a legal document that allows a person in the military to appoint someone else to act on their behalf in legal matters. This includes handling real estate transactions. The statement suggests that the military power of attorney is recognized in all 50 states for such transactions, implying that it is a true statement.

Title policy insurance premiums are established by the Maryland Insurance Administration (MIA). This is because the MIA is the regulatory authority responsible for overseeing insurance policies in the state of Maryland. They set the guidelines and regulations for insurance companies operating in Maryland, including the premiums for title policy insurance. The county, state, and federal government do not have direct authority over setting insurance premiums.

A "Metes and Bounds" description is a method used to describe the boundaries of a piece of land. It typically includes a point of beginning (POB), which is a reference point for the description, as well as the distances and directions of the boundaries. However, it does not include the measurement of square feet, as this type of description focuses more on the physical boundaries rather than the specific area or size of the land.

The statement is true because a lender's title insurance policy is designed to protect the lender's interest in the property until the loan is fully paid off. Once the loan is paid off, the lender's interest in the property is no longer at risk, hence the need for the title insurance policy ends. However, it's important to note that the borrower may still need to maintain their own separate title insurance policy to protect their own interest in the property.

An endorsement, also known as a rider, is a part of the lender's title policy that can modify the policy by either deleting standard exceptions or extending coverage. This means that the endorsement can add additional protections or exclusions to the policy, based on the specific needs or requirements of the lender. It is a separate document that is attached to the original policy and becomes a part of it.

The rectangular survey system is a method used to describe the location of property. It involves the use of two sets of intersecting lines which form a grid. This grid helps to divide the land into smaller sections, making it easier to identify and locate specific parcels of property. By using this grid system, each piece of land can be assigned a unique identifier based on its location within the grid. This allows for more efficient land management and property ownership records.

A TITLE COMMITMENT is commonly referred to as a binder. A binder is a temporary document that provides proof of insurance coverage until the final title policy is issued. It outlines the terms and conditions of the title insurance, including any exceptions or exclusions. The binder serves as a commitment from the title insurance company to insure the property's title once all requirements are met. It is typically issued during the closing process to provide assurance to the parties involved in the transaction.

When a property is owned as "tenants by entirety," it means that both Bill and Jane have equal ownership rights and neither can sell or transfer their share without the consent of the other. However, in the event of one spouse's death, the surviving spouse automatically becomes the sole owner of the property. Since Bill has died, Jane now owns the property by herself. The fact that they have one living child does not affect the ownership of the property in this case.

In a tenancy by entirety, both spouses have equal ownership and interest in the property. However, when one spouse has a money judgment against them, they cannot sell the property without satisfying the judgment. Therefore, John would have to pay off his judgment before selling the property.

The premium rate on the owner's policy of $200,000 can be calculated by multiplying the policy amount by the rate per $1000. In this case, the rate per $1000 is $2.50, so the premium rate would be $200,000 * $2.50 / $1000 = $500. However, since there is a 60% reissue rate, the premium rate is reduced by 60%. Therefore, the final premium rate would be $500 * (100% - 60%) = $200. However, this is not one of the options given. Therefore, the correct answer is $300, which may be due to a calculation error or a different discount rate applied.

Under certain circumstances, a trespasser can come onto your land and gain legal ownership of it through a legal term known as adverse possession. Adverse possession occurs when someone openly and continuously occupies another person's property without permission for a specified period of time, usually ranging from several years to a decade. If the true owner does not take legal action to remove the trespasser within the specified timeframe, the trespasser may be able to claim legal ownership of the property.

In the context of a contract to issue a title policy, the correct answer is "a commitment." A commitment is a preliminary step in the process of issuing a title policy. It is a written offer by a title insurance company to insure the title to a property, subject to certain conditions and requirements. Once the commitment is accepted and the conditions are met, the title insurance company will issue the final title policy. An addendum is an additional document that modifies or adds to the terms of an existing contract. An endorsement is a document that modifies or adds coverage to an insurance policy. A policy is the final document that outlines the terms and coverage of an insurance contract.

Escheat is the correct answer because when a person dies without any heirs, their property passes to the state through a legal process known as escheat. This ensures that the property does not remain unclaimed or abandoned and allows the state to take ownership and make decisions regarding its use or sale.

The owner's title insurance policy remains in effect as long as the owner or all heirs own the land. This means that the policy provides coverage for any title issues that may arise during the ownership of the property, as long as the property remains in the ownership of the original owner or their heirs. Once the property is sold or transferred to someone else, the policy is no longer valid.

The Maryland Insurance Commissioner has a term of 4 years. This means that the commissioner serves in their position for a period of 4 years before their term ends. During this time, the commissioner is responsible for overseeing and regulating insurance activities in the state of Maryland, ensuring that insurance companies comply with laws and regulations, and protecting the interests of consumers. The 4-year term allows the commissioner sufficient time to implement policies, address any issues or challenges in the insurance industry, and work towards the overall improvement of insurance services in the state.

The plat-of-survey method is a way of describing real estate that involves dividing the land into lots and blocks, or tracts. The recorded survey is a document that provides a detailed description of the property boundaries. However, the term "square foot" does not refer to a method of reference used in the plat-of-survey method. It is a unit of measurement used to quantify the size or area of a property.

The lender signs the "release of a mortgage" once the mortgage is paid off or satisfied. This document serves as proof that the borrower has fulfilled their financial obligation and the lender no longer has any claim on the property. The lender's signature on the release of the mortgage signifies the official release of the lien on the property, allowing the borrower to have clear ownership.

A full search of chain of title refers to the process of examining the complete history of ownership of a property. This involves tracing back all the previous owners and transactions related to the property. Considering the complexity and the number of documents that need to be reviewed, it is reasonable to assume that it would take a significant amount of time. Therefore, the correct answer of 60 years suggests that it would take approximately six decades to conduct a thorough search of the chain of title for a property.

According to Section 10-121 of the Maryland Code, a title insurance producer that willfully or knowingly violates this section is guilty of a misdemeanor. The punishment for this offense is a fine of $50,000, imprisonment for a period not exceeding 1 year, or both.

The legal description is included in a deed to identify the property being conveyed. This description provides a detailed and accurate account of the property's boundaries, dimensions, and location. It typically includes information such as lot numbers, block numbers, and subdivision names. Unlike a street address, which can change or be ambiguous, the legal description is a precise and permanent way to identify the property. The legal description is essential for ensuring clarity and avoiding any confusion or disputes regarding the property's boundaries.

A TIP (individual or company with employees) must file a blanket fidelity bond in the amount of $150,000. This bond serves as a form of insurance to protect against losses caused by fraudulent or dishonest acts committed by employees. By having this bond in place, the TIP is ensuring that they have financial coverage in case any employee engages in illegal activities that result in financial harm.

At settlement, certain items and expenses are pro-rated, meaning they are divided between the buyer and seller. This includes expenses such as real estate taxes. Pro-rating allows for a fair distribution of costs between both parties involved in the transaction.

The Exclusions section of the title policy does not cover the situation where someone else owns an interest in the title of the property. This means that if there is another person or entity with a legal claim or ownership rights to the property, the title policy will not provide coverage or protection against any issues or disputes arising from this. It is important for the buyer to conduct a thorough title search and investigation to ensure that there are no existing claims or encumbrances on the property before purchasing it.

The most important feature of a Joint Tenancy is the right of survivorship. This means that if one of the joint tenants passes away, their share automatically transfers to the remaining joint tenants, rather than being passed on to their heirs or beneficiaries. This ensures that the property remains in the hands of the surviving joint tenants and avoids the need for probate or legal complications. The other options, such as equal owners, expressly created, and unity of title, are important aspects of joint tenancy but the right of survivorship is the most crucial one.

Square footage is not a method used to describe real estate. It is a unit of measurement that is used to determine the size or area of a property. The other options, plat-of-survey, metes and bounds, and rectangular survey, are all methods used to describe real estate. Plat-of-survey refers to a detailed map or plan of a property, metes and bounds is a method that uses physical landmarks and measurements to define the boundaries of a property, and rectangular survey is a method that divides land into a grid-like pattern.

Tenants in common do not have the right of survivorship. This means that if one tenant in common dies, their share of the property does not automatically transfer to the other tenants. Instead, it is passed on according to their will or through the laws of intestate succession. In contrast, joint tenancy and tenants by entirety do have the right of survivorship, meaning that if one tenant dies, their share automatically transfers to the other tenants. Tenant in severalty refers to sole ownership of a property, so it does not involve multiple tenants or the issue of survivorship.

Maryland follows the race-notice state statute. This means that a subsequent purchaser of real estate will be protected against any prior unrecorded interests or claims if they are a bona fide purchaser for value and they record their interest before the prior interest or claim is recorded. In other words, the subsequent purchaser who acquires the property without notice of any prior interests and records their interest first will have priority over any competing claims.

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The official record holder of a Deed of Trust is the trustee. The trustee holds the "bare title" to the property, meaning they have legal ownership but no control or rights to the property. The trustee acts as a neutral third party and is responsible for managing the property and ensuring that the terms of the trust are followed. The beneficiary is the party who benefits from the trust, the trustor is the party who creates the trust, and the lender is the party who provides the loan secured by the trust.

The TIP has an obligation to uphold the legal principal of the TPIC. This means that the TIP is bound to follow and enforce the legal rules and regulations set forth by the TPIC. The TIP cannot disregard or ignore the legal principal of the TPIC and must ensure that it is upheld in their actions and decisions.

Riparian rights refer to the legal rights and privileges that individuals or entities have in relation to flowing water, such as streams or rivers. These rights typically include the right to use and access the water for various purposes, such as irrigation, fishing, or recreational activities. Riparian rights do not apply to water bodies that are not flowing, such as the ocean, sea, or lake, as these are governed by different legal principles. Similarly, running water from a faucet is not considered riparian rights, as it is supplied through a different system and not directly connected to natural water sources.

The correct answer is the title insurance producer business entity and individual (title company). At the time of settlement, it is their responsibility to review and follow the loan closing instructions as written. This is because the title insurance producer is typically involved in the closing process and is responsible for ensuring that all necessary documents and instructions are followed accurately. They play a crucial role in ensuring a smooth and legally compliant settlement process.

In the context of adverse possession, the time span refers to the duration of continuous occupation of a property that can lead to a legal claim of ownership. The correct answer is 20 years, which means that if a person occupies a property without the owner's permission for a period of 20 years, they may be able to acquire legal ownership of the property. This time frame may vary depending on the jurisdiction, but 20 years is a commonly recognized duration for adverse possession.

An endorsement can modify a title policy by deleting standard exceptions. This means that certain exceptions or exclusions that are typically included in a title policy can be removed or deleted through an endorsement. By doing so, the title policy becomes more comprehensive and provides coverage for a wider range of potential title issues. This modification is often done to meet specific requirements or address unique circumstances related to the property in question.

The correct answer is "provides abstractor services to the title insurance producer." This means that a person who is classified as a title insurance producer independent contractor is someone who offers abstractor services to the title insurance producer. This indicates that they are not directly involved in providing title insurance or escrow, closing, or settlement services that may lead to the issuance of a title insurance contract. Additionally, they are not considered an employee of the licensed and appointed title insurance producer.

Gerry is providing a special warranty deed. This type of deed guarantees that the grantor (Gerry) will defend the title against any claims or encumbrances that may have arisen during her ownership of the property. However, it does not provide protection against claims that may have existed prior to Gerry's ownership.

The subordination agreement is recorded with the county recording office. This is because the county recording office is responsible for maintaining public records related to property ownership and transactions. Recording the subordination agreement with the county recording office ensures that it becomes a part of the official public record, providing notice to any interested parties, such as lenders or title companies, regarding the agreement's existence and terms.

A referee's deed is used in foreclosure. In foreclosure, when a property is being sold to pay off a debt, a referee is appointed by the court to oversee the sale. The referee's deed is then issued to transfer ownership of the property from the borrower to the buyer. This type of deed ensures that the foreclosure process is conducted legally and that the buyer receives clear title to the property.

A "Deed in Lieu of Foreclosure" is not used for extinguishing ground rent. This method involves the borrower voluntarily transferring the property title to the lender in order to avoid foreclosure. However, ground rent is typically terminated through statutory procedures, the operation of law, or through a Deed of Redemption/Merger Deed.

The rectangular survey method is not used in urban areas to describe real estate. This method involves dividing land into a grid of rectangular sections, typically used in rural areas where land is more open and less developed. In urban areas, the plat-of-survey, recorded plat method, and lot-block-tract method are more commonly used to describe real estate boundaries and ownership.

The correct answer is 12 years. The statute of limitations refers to the time period within which a legal action can be filed. In the context of a Maryland state court judgment, the statute of limitations is the maximum time limit for enforcing the judgment. In this case, the statute of limitations for a Maryland state court judgment is 12 years, meaning that the judgment must be enforced within this time frame. After 12 years, the judgment may no longer be enforceable.