FINC 371 Test 2 Exam with Questions and Correct Answers 2025.

FINC 371 Test 2 Exam with Questions
and Correct Answers 2025




Ch. ,5 ,- ,CORRECT ,ANSWER-Deeds ,and ,Titles

All ,RE ,contracts ,must ,be ,in ,______ ,- ,CORRECT ,ANSWER-writing

6 ,Essential ,Elements ,of ,a ,Deed ,- ,CORRECT ,ANSWER-1. ,Grantor ,[Giver]
2. ,Grantee ,[Receiver]
3. ,Consideration ,[something ,of ,economic ,value]
4. ,Legal ,Description ,[metes/bounds, ,plats, ,etc]
5. ,Signatures ,[once ,have ,both, ,then ,it ,is ,considered ,executed]
6. ,Delivered ,[title ,not ,transferred ,UNTIL ,delivery ,to ,Grantee, ,filed ,with ,county]

Covenants ,vs ,Warranties ,- ,CORRECT ,ANSWER-Covenant: ,agreement ,or ,promise ,[4]

Warranty: ,guarantee ,statements ,are ,true ,[1]

4 ,Traditional ,Covenants: ,- ,CORRECT ,ANSWER-1. ,Against ,Encumbrances ,[no ,other
,encumbrances ,than ,ones ,disclosed]


2. ,Seisin ,or ,Ownership ,[assurance ,grantor ,is ,able ,to ,sell ,the ,RE]

3. ,Quiet ,Enjoyment ,[promise ,to ,protect ,rights ,for ,quiet ,enjoyment ,against ,anyone ,who
,might ,claim ,title ,to ,property ,later]


4. ,Further ,Assurances ,[backup/prove ,you ,now ,own ,the ,property; ,requires ,seller ,to
,take ,affirmative ,steps ,to ,cure ,any ,defects ,in ,title]


1 ,Traditional ,Warranty: ,- ,CORRECT ,ANSWER-1. ,Warranty ,Forever ,[guarantee
,statements ,are ,true]


Types ,of ,Deeds ,[4 ,degrees ,of ,deeds] ,- ,CORRECT ,ANSWER-Varying ,Degree ,of
,Protection


1. ,Warranty ,Deed ,[protects ,for ,everything ,past ,and ,present] ,- ,CORRECT ,ANSWER--
Broadest ,type ,of ,deed
-Grantor ,promises ,ALL ,4 ,covenants ,and ,1 ,warranty ,

,-Grantor ,promises ,to ,DEFEND ,title ,conveyed

-> ,Owner ,takes ,responsibility

2. ,Special ,Warranty ,Deed ,[backing ,up ,for ,everything ,during ,present ,ownership] ,-
,CORRECT ,ANSWER--Limits ,warranties ,to ,events ,occurring ,DURING ,grantor's ,period
,of ,ownership
-does ,NOT ,protect ,prior ,encumbrances

3. ,Bargain ,& ,Sale ,Deed ,[aka ,"warranty ,deed ,w/o ,covenants"] ,- ,CORRECT ,ANSWER-
-Implies ,grantor ,has ,title ,to ,property ,and ,rights ,to ,convey ,it ,
-does ,NOT ,contain ,express ,covenants ,as ,to ,title ,validity

ex) ,used ,when ,bank ,selling ,title ,in ,an ,auction

4. ,Quitclaim ,Deed ,[worst ,protection] ,- ,CORRECT ,ANSWER--Transfers ,any ,interest
,grantor ,may ,have ,in ,property ,but ,does ,NOT ,imply ,grantor ,has ,any ,valid ,interest
-worst ,protection ,of ,all ,deeds

ex) ,most ,commonly ,used ,to ,clear ,defects ,in ,title ,to ,property

GOOD ,Title ,= ,- ,CORRECT ,ANSWER--Marketable ,[Free ,and ,Clear ,of ,Claims]
-Insurable ,[Reputable ,Title]
-Perfect ,of ,Record ,[No ,defects ,in ,title]

Title ,Examination: ,- ,CORRECT ,ANSWER-Discovering ,Possible ,Defects

1. ,Title ,Opinion ,[lawyer ,statement] ,- ,CORRECT ,ANSWER-A ,statement ,by ,a ,lawyer
,summarizing ,findings ,by ,a ,search ,that ,may ,relate ,to ,title


2. ,Title ,Insurance ,[policy ,providing ,protection ,@ ,time ,of ,title ,transfer] ,- ,CORRECT
,ANSWER-A ,policy ,that ,insures ,the ,title ,received ,by ,grantee ,against ,any ,deficiencies
,that ,may ,have ,been ,in ,existence ,at ,time ,title ,was ,transferred


3. ,Title ,Search ,[reveal ,ownership ,history] ,- ,CORRECT ,ANSWER-Reveals ,ownership
,history ,or ,chain ,of ,title
-> ,recording ,system: ,goal ,is ,to ,protect ,potential ,interest ,holder ,(in ,county ,courthouse))

Video: ,Common ,Mistakes: ,- ,CORRECT ,ANSWER-1. ,error ,in ,public ,records
2. ,unknown ,liens
3. ,missing ,heirs
4. ,forgeries
5. ,surveyor ,boundary ,issues

Title ,Abstract ,[does ,not ,require ,lawyer] ,- ,CORRECT ,ANSWER--A ,written ,summary ,of
,chain ,of ,title ,of ,RE

, -lawyer ,may ,hire ,a ,title ,abstract ,company ,to ,do ,research ,and ,then ,he ,will ,sign ,it ,to
,save ,time ,and ,money


->summarization ,of ,title ,history

Torrens ,System ,[similar ,to ,a ,car ,title] ,- ,CORRECT ,ANSWER--provides ,landowner
,with ,a ,title ,certificate ,[British ,system]
-obtained ,through ,legal ,proceedings
-transferring ,title: ,
old: ,returned ,to ,registrar
new: ,issued ,to ,new ,owner

Ch. ,6 ,- ,CORRECT ,ANSWER-Contracts ,and ,Title ,Closings

Necessary ,Elements ,to ,a ,Contract: ,- ,CORRECT ,ANSWER-1. ,Offer
2. ,Acceptance
3. ,Consideration
4. ,Parties ,Capacity
5. ,Lawful ,Purpose

1. ,Offer ,- ,CORRECT ,ANSWER--A ,statement ,that ,specifies ,position ,of ,the ,maker ,of
,offer ,[offeror]
-Receiving ,party ,= ,offeree
-> ,Offer ,becomes ,valid ,when ,contract ,is ,ACCEPTED ,by ,receiving ,party ,but ,has ,right
,to ,take ,back ,BEFORE ,accepted


2. ,Acceptance ,- ,CORRECT ,ANSWER--Expresses ,satisfaction ,with ,an ,offer
-Must ,mirror ,exact ,terms ,and ,conditions ,of ,the ,offer

Counteroffer ,- ,CORRECT ,ANSWER-original ,offerer ,and ,offeree ,switch ,legal ,positions,
,indicated ,by ,signatures ,of ,all ,parties


3. ,Consideration ,- ,CORRECT ,ANSWER--Required ,by ,law ,for ,contract ,to ,be
,enforceable
-each ,party ,must ,give ,up ,something

4. ,Capacity ,of ,Parties ,- ,CORRECT ,ANSWER--All ,parties ,must ,have ,"contractual
,capacity"
-> ,ALL ,must ,have ,mental ,capability ,to ,known ,what ,contract ,represents ,and
,understand ,terms


Lack ,Capacity:
1. ,Mentally ,Incompetent
2. ,Minor

5. ,Lawful ,Purpose ,- ,CORRECT ,ANSWER--A ,valid ,contract ,must ,be ,legal