A purchaser of real property received a grant deed and a standard policy of title insurance. Which of the following items would be warranted by the seller, but not insured by the title policy:
A: That the grantor was indeed the owner of the property;
B: That there were no undisclosed liens against the property suffered by the grantor;
C: That there are no forged deeds in the chain of title;
D: That the grantor is competent to convey the property.
Answer: B: That there were no undisclosed liens against the property suffered by the grantor;
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Amounts owed for products or services purchased on account are called ________
A) accounts payable B) unearned revenue C) accrued expense D) warranty payable
On December 1, 2017, Arthur, Inc had 40,000 shares of $10 par value common stock issued and outstanding
The next day it declared a 50% stock dividend. The market value of the stock on that date was $9 per share. Which of the following is the correct journal entry to record this transaction? A) debit Stock Dividends $360,000 and credit Cash $360,000 B) debit Stock Dividends $360,000, credit Common Stock $400,000, and credit Paid-In Capital in Excess of Par -$40,000 C) debit Common Stock $200,000 and credit Cash $200,000 D) debit Stock Dividends $200,000 and credit Common Stock Dividend Distributable $200,000