Test Bank Answer Key
Chapter 12 Title Examinations
TRUE/FALSE
1. An alphabetical index by last name of all purchasers and holders of mortgages and security
deeds is known as a grantor index.
2. An alphabetical index by last name of all people who are purchasers and holders of mortgages
and security deeds is known as a grantee index.
3. A title examiner would search in the grantee index from the past to a present date.
4. A title examiner would search in the grantee index from the present to some designated point in
time in the past.
5. A grantor index enables an examiner to build a chain of title from the present to the past.
6. A grantee index enables an examiner to build a chain of title from the present to the past.
7. An alphabetical index by last name of all people who are sellers, borrowers, and mortgagors is
known as a grantee index.
8. The most common recording statute is the notice recording statute.
9. The most common recording statute is the race recording statute.
10. The most common recording statute is the race notice statute.
11. The proper recording in the public records of a real property mortgage will put subsequent
purchasers on actual notice of the mortgage.
12. The proper recording in the public records of a real property mortgage will put subsequent
purchasers on constructive notice of the mortgage.
13. A bona fide purchaser will receive ownership of property subject to all claims which the
purchaser has actual or constructive notice.
14. A sequence of subsequent owners to a particular parcel of property, beginning with the original
owner and moving through all successive owners to the current owner, is known as a “chain
of title.”
15. A sequence of subsequent owners to a particular parcel of property, beginning with the
original owner and moving through all successive owners to the current owner, is known
as a “lis pendens.”
16. Constructive notice is imparted to unrecorded instruments that are referred to in a recorded
instrument.
17. Constructive notice is not imparted to unrecorded instruments that are referred to in a
recorded instrument.
18. Once a judgment has been recorded in the public records, it becomes a lien on all property of
the judgment debtor owned at the time of recording but not on any future property acquired by
the debtor.
19. A judgment that has been recorded in the public records becomes a lien on all property of
the judgment debtor owned at the time of recording as well as any future property acquired
by the debtor.
20. A judgment, once recorded, is a lien which will last forever unless the judgment is paid.
21. A lis pendens gives notice of a federal tax lien against the property.
22. A lis pendens gives notice of a pending lawsuit which affects title to the property.
23. A break in the chain of title is not considered a title defect.
24. A break in the chain of title is considered a serious title defect.
25. Federal tax lien that has been recorded is a lien against all the real property owned or
subsequently acquired by the delinquent taxpayer.
26. Federal tax liens, when recorded, are liens against all the real property owned by the delinquent
taxpayer at the time of the recording but are not liens against future property acquired by the
delinquent taxpayer.
27. Probate records should be examined when property is acquired or passes through an estate.
28. A bona fide purchaser status provides special protection not only to the bona fide purchaser but
also to anyone purchasing from the bona fide purchaser.
29. A person who acquires title by inheritance is a bona fide purchaser for value.
30. A person who acquires property by inheritance is generally not a bona fide purchaser for value.
MULTIPLE CHOICE
1. A bona fide purchaser for value would take subject to which of the following claims?
A. Unrecorded mortgage
B. Rights of party in possession of the property
C. Unrecorded easement
D. Civil suit for collection of a debt against the seller of the property
2. Which of the following would not be constructive notice?
A. Unrecorded mortgage which is attached as an exhibit to the sale contract
B. Matter shown on a survey of the property
C. Recorded easement
D. Recorded federal tax lien
E. None of the above
3. A conveys property to B by deed dated March 1. B does not record the deed until March 4. A
conveys the same property on March 2 to C. C receives the deed on March 2 with full
knowledge that a previous deed had been given to B. C records its deed on March 3. Under
what recording statute would C be declared the owner of the property?
A. Notice
B. Race notice
C. Race
D. C would not be the owner under any of the above recording statutes.
4. A conveys property to B on March 1. B does not record the deed until March 3.
On March 2 A conveys the same property to C, who purchases the property on March 2
with no knowledge of the previous deed to B. C does not record its deed until March 4.
B would be the owner of the property under which of the following recording statutes?
A. Race
B. Notice
C. Race notice
D. (a) and (c) above
E. All of the above
5. A title examination is generally performed in the county where:
A. the owner of the property resides.
B. the county where the property is located.
C. the county where the purchaser of the property resides.
D. the county where the title examiner resides.
6. A full title search generally requires that the real property records be searched for a
minimum of:
A. 10 to 20 years.
B. 50 to 60 years.
C. 7 years.
D. 100 years.
7. A mortgagor’s name would be found in the:
A. grantor index.
B. general execution docket.
C. grantee index.
D. plat index.
8. Which of the following persons would not be alphabetically listed in a grantee index?
A. Seller of property
B. Mortgagee
C. Holder of an easement
D. Purchaser of property
9. Which of the following persons would not be alphabetically listed in a grantor index?
A. Mortgagor
B. Seller of property
C. Grantor of easement
D. Purchaser
10. It would be necessary to examine the Uniform Commercial Code financing statement index
only if:
A. civil suits were filed against the owner of the property.
B. federal tax liens have been filed against the property.
C. the transaction involves both real and personal property.
D. there are judgments against the owner of the property.
11. A recorded notice that a lawsuit affecting title to the property is pending is known as:
A. judgment.
B. civil docket.
C. lis pendens.
D. check down.
12. Which of the following would be revealed by a title report?
A. Name of current record title holder
B. Status of taxes
C. List of all easements, covenants, and restrictions
D. None of the above
E. All of the above
SHORT ANSWER
1. Big News Ad Company has leased a portion of Farmer Jane’s land for the purpose of installing
a billboard sign. The lease is for 50 years and is unrecorded. The sign was built on the leased
space and is clearly visible to anyone who visits the property. Farmer Jane sells the leased land
to Farmer Bill. Farmer Bill threatens to terminate Big News’s lease unless it pays him more
rent. Farmer Bill claims that since the lease was not recorded he is a bona fide purchaser and is
not bound by the lease terms. Will Farmer Bill be successful with his claim against Big News?
2. Main Street Bank believes that it has a recorded mortgage on property from Dawn Sellers. Due
to lack of organization at the bank, it cannot find either an original or a copy of the mortgage.
Main Street hires a law firm to search title to see if the mortgage has been recorded. Would it
be easier for the firm to search the Bank’s name in the grantee index or Dawn’s name in the
grantor index?
3. You have been asked to do a title examination in connection with a proposed sale of a home.
What information should you have in order to do the search?