Titles, Deeds & Ownership Restrictions: Free Florida Real Estate Practice Questions

1. 1. A buyer's attorney discovers an old unresolved judgment against a prior owner that creates genuine doubt about whether the seller holds clear ownership. The seller cannot demonstrate clear, unencumbered ownership. The buyer may refuse to close because the seller has failed to deliver:

   • A) Marketable title -- title reasonably free from doubt, liens, and encumbrances that would expose the buyer to litigation
   • B) An insured title -- a title backed by a title insurance policy
   • C) A recorded title -- a chain of title fully documented in the public records
   • D) A quitclaim deed -- transferring only the seller's existing interest
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   Correct answer: A) Marketable title -- title reasonably free from doubt, liens, and encumbrances that would expose the buyer to litigation

   Marketable title is title that is reasonably free of doubt, defects, liens, and encumbrances that would expose the buyer to litigation or impair the buyer's ability to use, enjoy, or sell the property. A purchase contract requiring the seller to deliver marketable title gives the buyer the right to refuse to close if the title is clouded. An insured title means a title insurance policy exists but does not resolve the underlying defect. A quitclaim deed conveys whatever interest the seller has, which may or may not be marketable.

2. 2. A state agency determines that a private landowner's property is needed to build a public highway. The agency takes the property through a legal proceeding and compensates the owner at appraised fair market value. This governmental power is called:

   • A) Eminent domain (condemnation) -- the government's constitutional power to take private property for public use upon payment of just compensation
   • B) Escheat -- the reversion of property to the state when an owner dies without heirs
   • C) Police power -- the government's authority to regulate land use for public health and safety
   • D) Dedication -- the voluntary transfer of private land for public use
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   Correct answer: A) Eminent domain (condemnation) -- the government's constitutional power to take private property for public use upon payment of just compensation

   Eminent domain (or condemnation) is the constitutional power of government to acquire private property for a public use in exchange for just compensation, as guaranteed by the Fifth Amendment's Takings Clause. Escheat transfers property to the state only when an owner dies intestate with no heirs -- no compensation is involved. Police power regulates the use of private property (zoning, building codes) without acquiring it. Dedication involves the landowner voluntarily transferring land for public purposes.

3. 3. Under Florida's recording statutes (F.S. 695.01), which subsequent purchaser of real property takes priority over an earlier, unrecorded conveyance?

   • A) The first buyer to sign a purchase contract, because the contract creates equitable title
   • B) The buyer who paid the highest price, because consideration determines priority
   • C) Any buyer who records first, regardless of whether they had notice of the prior conveyance
   • D) A subsequent purchaser who pays valuable consideration and takes without actual or constructive notice of the prior conveyance
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   Correct answer: D) A subsequent purchaser who pays valuable consideration and takes without actual or constructive notice of the prior conveyance

   Florida is a notice recording state under F.S. 695.01. A prior unrecorded conveyance is void against a subsequent purchaser for valuable consideration who takes without notice of the prior conveyance -- the subsequent buyer does NOT also need to record first. The key protection is the absence of notice (actual, constructive, or inquiry). A buyer who has actual knowledge of a prior unrecorded deed cannot use the recording act to defeat it. Recording protects the prior grantee by giving constructive notice to future purchasers.

4. 4. A developer conveys a retail building to a buyer using a deed that warrants title only against claims, liens, or encumbrances arising during the developer's ownership -- not from any prior period. This is a:

   • A) Special warranty deed
   • B) General warranty deed, limited by its terms
   • C) Bargain and sale deed with covenant
   • D) Trustee's deed used for commercial transactions
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   Correct answer: A) Special warranty deed

   A special warranty deed limits the grantor's covenant of warranty to defects or claims that arose only during the grantor's own period of ownership. The grantor makes no representation about the title's history before they acquired it. Developers, corporations, and government agencies frequently use special warranty deeds. A general warranty deed covers the entire chain of title; a bargain and sale deed implies ownership but carries no express warranty covenants; a trustee's deed is used when a trustee conveys trust property.

5. 5. A general contractor records a lien against a specific property for $18,000 in unpaid work performed on that property. This is an example of a:

   • A) General lien, affecting all real and personal property the contractor owns
   • B) Specific lien, attaching only to the particular property on which the work was performed
   • C) Equitable lien, arising from the doctrine of unjust enrichment
   • D) Judgment lien, automatically attaching to all of the debtor's Florida properties
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   Correct answer: B) Specific lien, attaching only to the particular property on which the work was performed

   A specific lien attaches to and encumbers only the single property identified in the lien. A construction lien (mechanic's lien) under F.S. 713 is a classic specific lien -- it can only be enforced against the property on which the labor, services, or materials were provided. A general lien (such as a judgment lien or federal tax lien) attaches to all real and personal property the debtor owns in the relevant jurisdiction. Judgment liens are general liens and affect all the debtor's properties, not just one.

6. 6. The clause in a deed that begins 'To have and to hold...' and defines the type and quantity of the estate being transferred to the grantee is called the:

   • A) Granting clause
   • B) Testimonium clause
   • C) Covenant of seisin
   • D) Habendum clause
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   Correct answer: D) Habendum clause

   The habendum clause (from the Latin 'to have and to hold') follows the granting clause and defines the extent and type of estate being conveyed -- for example, whether it is a fee simple absolute or a life estate. The granting clause contains the operative words of transfer (e.g., 'grants, bargains, and sells'). The covenant of seisin is the grantor's warranty that they actually own and have the right to convey the property. The testimonium clause precedes the grantor's signature block.

Not affiliated with Pearson VUE, the Florida DBPR, or FREC. This is an independent study tool; questions are original and verified against Florida statutes and FREC rules.