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NEW JERSEY TITLE INSURANCE EXAM | NJ TITLE
INSURANCE TEST BANK | TITLE INSURANCE
LICENSING | ALL QUESTIONS AND CORRECT
ANSWERS | VERIFIED ANSWERS | LATEST VERSION
2025 | ALREADY GRADED A+
Municipalities have enacted ordinances (a set of rules) to specify construction standards that must be met when repairing to erecting buildings ---------CORRECT ANSWER-----------------Building Codes The difference between the market value of a property and the outstanding liens. ---------CORRECT ANSWER-----------------Equity If the only access to a parcel is through another's property the owner may acquire this to reach his or her land ---------CORRECT ANSWER-------------- ---Easement by Necessity A wife's right to a life estate in her deceased husband's share of the property. ---------CORRECT ANSWER-----------------Dowers Right A transfer of property by lease By will? ---------CORRECT ANSWER-----------------Demise devise
The degree, quantity, nature, and extent of interest that a person has in real property, alive or deceased ---------CORRECT ANSWER----------------- Estate Zoning with the intent to discriminate against low and middle-income housing. ---------CORRECT ANSWER-----------------Exclusionary Zoning Areas in properties owned in common by Condominiums owners as a group. ---------CORRECT ANSWER-----------------Common Elements Interest acquired by buyer with land contract. When someone has a legal right to Title which is being held by another. ---- -----CORRECT ANSWER-----------------Equitable Title (estate) A right acquired by one party to use the land of another party for a special purpose. ---------CORRECT ANSWER-----------------Easement The right of government to take privately owned real estate for the public good and owner receives just compensation ---------CORRECT ANSWER--- --------------Eminent Domain Limitations placed on the use of the property by private parties (not government) and found in the deed ---------CORRECT ANSWER-------------- ---Deed Restrictions
An estate in land that can terminate in the occurrence or nonoccurence of a specified event; "as long as" ---------CORRECT ANSWER-----------------Fee determinable Third party who will eventually gain ownership ---------CORRECT ANSWER-----------------Remainderman Future interest of an owner ---------CORRECT ANSWER----------------- Reversionary interest A financial claim against property that provides security for a debt or obligation of the property owner ---------CORRECT ANSWER----------------- Lien Placed against one parcel of real estate only (Mortgage, child support, property taxes) ---------CORRECT ANSWER------- ----------Specific lien Determines the order a lien would be paid off in case of a foreclosure
- determines by the date of recording in the public records where property is located ---------CORRECT ANSWER-----------------Priority A pledge of real property that serves as security or collateral for a loan ------ ---CORRECT ANSWER-----------------Mortgage
When a party in legal possession of property leaves without the intention of reclaiming rights. ---------CORRECT ANSWER-----------------Abandonment A brief history of the instruments appearing in the county record that affect title to the parcel in question. Condensed history of all documents affecting a parcel of real estate --------- CORRECT ANSWER-----------------Abstract of Title Mortgage Clause demanding full payment upon Default. ---------CORRECT ANSWER-----------------Acceleration Clause An increase of land caused by the gradual depositing of solid material ------- --CORRECT ANSWER-----------------Accretion A non negotiable contract with terms dictated by one party. --------- CORRECT ANSWER-----------------Adhesion Contract A contract based upon Future uncertain conditions. ---------CORRECT ANSWER-----------------Aleatory Contract Transfers Title of an intestate by the administrator. ---------CORRECT ANSWER-----------------Administrators Deed
Estates of indeterminable length - a person may OWN that estate for a lifetime or forever ex: Fee simple ; fee determinable ; life estate ---------CORRECT ANSWER- ----------------Freehold Estate Sudden change of course of a stream ---------CORRECT ANSWER----------- ------Avulsion two or more people own property ; nonmarried persons with right of survivorship ---------CORRECT ANSWER-----------------Joint Tenancy American Land Title Association ---------CORRECT ANSWER----------------- ALTA Charging more than (unusually high) the legal limit on interest. --------- CORRECT ANSWER-----------------Usury A defensible estimate of value by an expert under given market conditions. ---------CORRECT ANSWER-----------------Appraisal Granting of a lifetime interest in the property without the right to transfer title. Complete ownership until someone's death ---------CORRECT ANSWER---- -------------Life Estate
The means to gain entrance into or to an exit from a property --------- CORRECT ANSWER-----------------Ingress And Egress A government agency which oversees National Housing Programs and enforce the Federal Fair Housing Act ---------CORRECT ANSWER------------ -----Housing and Urban Development (HUD) To ensure that the buyer and seller in a residential real estate transaction have knowledge of all settlement costs ; prohibits kickbacks --------- CORRECT ANSWER-----------------Real Estate Settlement Procedures Act (RESPA) Description makes use of the boundaries and measurements of the land in question ---------CORRECT ANSWER-----------------Metes and Bounds Aid surveyors, permanent reference points ---------CORRECT ANSWER----- ------------Benchmark Summary of all Deeds in a condominium project, as well as describing the interest in common elements. ---------CORRECT ANSWER----------------- Master Deed a point, line, or surface from which elevations are measured or indicated --- ------CORRECT ANSWER-----------------Datum
A court decision regarding the respective claims of the parties to an action After recorded, this usually becomes a general lien on the property of the defendant ---------CORRECT ANSWER-----------------Judgement A use Variance for a specific property. ---------CORRECT ANSWER---------- -------Spot Zoning The distance set by zoning ordinances from adjoining property lines limiting the placement of a building / space between houses ---------CORRECT ANSWER-----------------Set Back A lien against all the property / assets someone owns (Judgements, federal / state taxes, debts of dead person, IRS taxes) --------
- CORRECT ANSWER-----------------General Lien The power vested in a state to establish legislation to preserve order, protect the public health and safety and promote general welfare (environmental protection laws, zoning & building ordinances) --------- CORRECT ANSWER-----------------Police Power A mortgage in which payments are lowered intentionally then increase to make up the difference. ---------CORRECT ANSWER----------------- Graduated Payment Plan (Adjustable Rate Mortgage)
Default on a contract by one or two parties. ---------CORRECT ANSWER---- -------------Breach of Contract Land bordered or traversed by a stream of waterway ; use of water by adjoining landowners If a stream is identified as non navigable by a federal survey map --------- CORRECT ANSWER-----------------Riparian Rights title of property is transferred without the owners content, such as: Adverse Possession, Eminent Domain, Escheat or Foreclosure ---------CORRECT ANSWER-----------------Involuntary Alienation Movable personal property ---------CORRECT ANSWER----------------- Chattels The grantor warrants that he is the owner of the property and has the right to convey title to it ---------CORRECT ANSWER-----------------Seisin To cancel or nullify in agreement returning to status quo within 7 days ------- --CORRECT ANSWER-----------------Recession The term describing a specific lien against a property. ---------CORRECT ANSWER-----------------In Rem
Tenant ; the lender of the property ; acquires the title ---------CORRECT ANSWER-----------------Lessee / Mortgagee / Grantee The lease or ownership of a property for the specific time. Within the year and which repeats each year for the length of these or Forever. --------- CORRECT ANSWER-----------------Time Sharing "To have and to hold" clause that explains ownership being transferred ----- ----CORRECT ANSWER-----------------Habendum Clause landlord / owner of property / person who sells or gives land --------- CORRECT ANSWER-----------------Lessor / Mortgagor / Grantor Ownership by more than one party where the interest do not have to be equal. NO rights of survivorship The partners own the property together and have a right to device pair shares. ---------CORRECT ANSWER-----------------Tenants In Common Change the use of a property that does not meet zoning requirements ------ ---CORRECT ANSWER-----------------Variance Land bordering bodies of water (oceans, seas, or large lakes) affected by tide currents ---------CORRECT ANSWER-----------------Littoral Rights
Latin term denoting "buyer beware". ---------CORRECT ANSWER------------- ----Caveat Emptor An instrument used to create a mortgage lien by which the borrower / mortgagor conveys title to a trustee, who holds it as security for the benefit of the note holder (the lender) ---------CORRECT ANSWER----------------- Trust Deed (Deed of Trust) An area of 36 sections of one square mile each on a rectangular survey. Each square mile contains 640 acres ---------CORRECT ANSWER------------ -----Township The right to pass over the property of another. ---------CORRECT ANSWER-----------------Right Of Way An amount of money agreed to in advance by buyer and seller that serves as compensation if one party does not live up to the contract Sum agreed on to serve as damages in case of future default --------- CORRECT ANSWER-----------------Liquidated Damages Special tenancy between husband and wife
- owners have right of survivorship & no right to partition ---------CORRECT ANSWER-----------------Tenancy by the Entireties
adding or combining successive periods of continuous occupation by several different possessors ---------CORRECT ANSWER----------------- Tacking A wall of a building that straddles the boundary lines between two owners lots ---------CORRECT ANSWER-----------------Party Wall the revocable permission for a temporary use of the land ---------CORRECT ANSWER-----------------License All or part of a building, fence, driveway or any other installation illegally extends beyond the land of its owners and covers adjoining owners land --- ------CORRECT ANSWER-----------------Encroachments
- by express grant from the owner of the property
- by the granting in a deed of conveyance
- granting the new owner an easement over the grantors remaining land
- by necessity
- by implication (court action) ---------CORRECT ANSWER----------------- Creating an Easement The earth's surface, extending downward to the center of the earth and upward to infinity, including things permanently attached by nature (trees and bushes) ---------CORRECT ANSWER-----------------Land
A specific tract of land with legally defined boundaries ---------CORRECT ANSWER-----------------Parcel The earth's surface, extending downward to the center of the earth and upward into space, including things permanently attached by nature OR by people and all rights, benefits, and interests in it
- land and anything permanently attached to it
- transferred by a deed
- trees, bushes, grasses - don't require cultivation ---------CORRECT ANSWER-----------------Real estate The rights to the natural resources lying below the earths surface --------- CORRECT ANSWER-----------------Subsurface Rights The creation of dry land by the gradual withdrawal of water --------- CORRECT ANSWER-----------------Reliction All property not real property - Anything that is movable
- transferred by bill of sale
- emblements (crops - wheat, corn, vegetables) ---------CORRECT ANSWER-----------------Personal Property item of personal property that becomes real property because its permanently attached to the land or a building
a form of organization that is useful for taking advantage of certain tax benefits ---------CORRECT ANSWER-----------------Real Estate Investment Trust (REIT) Title / stock ownership in a corporation that owns a multi-unit complex (apartment building) where tenants of the building are stockholders and hold proprietary leases ---------CORRECT ANSWER----------------- Cooperative Ownership joining together of two or more people to carry out a particular business project ; they are NOT legal entities ---------CORRECT ANSWER-------------- ---Syndicate co-op (cooperative) owner's right to occupy the apartment --------- CORRECT ANSWER-----------------Propietary Lease members have tax advantages offered by partnerships and limited liability offered by the corporation. has a flexible management structure --------- CORRECT ANSWER-----------------Limited Liability Company (LLC) an artificial person or legal entity created under the laws of the states from which it receives its charter.
- exists until its formally dissolved ---------CORRECT ANSWER----------------- Corporation
in NJ, the creation of condominiums is regulated by the states --------- CORRECT ANSWER-----------------Horizontal Properties Act manage and operate the corporation ---------CORRECT ANSWER------------- ----Board of Directors (BOD) an organization of people or firms designed to carry out a single project ; limited period of time has rights of survivorship ---------CORRECT ANSWER-----------------Joint Venture incudes general & limited partners. General partners run the business. limited partners do not participate in the operations but can be held liable for business losses only to the extent of his or her investment --------- CORRECT ANSWER-----------------Limited Partnership the financial and tax advantages of home ownership combined with various advantages of apartment living ---------CORRECT ANSWER----------------- Condominium an architectural style in which buildings share a party wall --------- CORRECT ANSWER-----------------Town house an association of two or more persons to carry on a business as co-owners and share business profits & losses ---------CORRECT ANSWER-------------- ---Partnership
