Sam and Martha, a newlywed couple, recently bought their first home from Peter. After a few months after the sale, they were sued by Peter's cousin, Paul, who claimed he owned 1/2 of the rights to the house with Peter and did not authorize the sale. Peter had told Sam & Martha about Peter's interest in the property prior to the purchase of the home, but assured them that he had authority to sell.
1. Would title insurance cover Sam & Martha against Paul's claim? Discuss in detail.
2. Are there any exclusions that might apply?

Answers

Answer 1

Answer:

Sam and Martha Vs. Title Insurance

1. Title insurance would cover Sam and Martha against Paul's claim.  Paul's claim is a third party claim in the real sense.  Peter is assumed to have the legal authority to sell the property, as he justly represented.

This is because a title insurance policy insures against the defects in the title which are discoverable through an examination of the public record. This includes the defects in the title of recorded liens or encumbrances.

2. Some exclusions to the title insurance cover that might apply include:

a. defects created after the issuance of the policy or defects that the insured created.

b. The failure to pay mortgage on the house, if any.

c. Non-compliance with laws and covenants and specific taxes and assessments.

Explanation:

Title insurance is one class of an insurance policy that protects lenders and homebuyers from financial losses arising from defects in a property's title. Some title insurance policies are purchased by the property buyer to protect the lender.  Some other ones are purchased to protect both the buyer and the mortgage lender.


Related Questions

A policy change that would reflect the input view of healthcare would be Group of answer choices subsidizing health insurance for low-income children. subsidizing construction of neighborhood walking trails. eliminating payments by consumers for annual checkups. All of the above.

Answers

Answer: Subsidizing health insurance for low-income children.

Explanation:

Subsidizing health care for low-income children will lead to more children being insured which will give them access to much needed medical care when they need it much like the Affordable care act.

This would reflect that access to healthcare services are an input in the public health of a nation and its economy.

Why are short sentences and short paragraphs appropriate for business communication?

Answers

Answer:

Objs. 4 For business communications it is essential to express ideas and facts eloquently. The shorter the sentences and paragraph are, the brief the letter, memo or notice. This will save the reader's and writer's time.

A quality analyst wants to construct a control chart for determining whether four machines, all producing the same product, are under control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results: Show your work.
Machine Total Defectives
1 23
2 15
3 29
4 13
What is the sample proportion of defectives for machine # 1?
A) .023
B) .02
C) .0115
D) .0058
E) .005

Answers

Answer:

A) 0.023

Explanation:

Sample size = 1,000

Number of defectives collected from Machine #1 = 23

So, the sample proportion of defectives for machine #1 = Number of defective output / Sample size  = 23/1000 = 0.023

1. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units

Answers

Question Completion:

Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows:

 

                                   Average Cost per Unit  

Direct materials                            $7.00                    $7.00

Direct labor                                    $4.00                    $4.00

Variable manufacturing overhead   $1.50                     $1.50

Fixed manufacturing overhead   $5.00                     $5.00

Fixed selling expense                   $3.50

Fixed administrative expense   $2.50

Sales commissions                   $1.00

Variable administrative expense   $0.50

Total                                                 $25.00                  $17.50

Required:

1. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units?

Answer:

For financial accounting purposes, the total amount of product costs incurred to make 20,000 units is:

$350,000.

Explanation:

a) Data and Calculations:

Relevant product cost elements:

                                   Average Cost per Unit  

Direct materials                            $7.00

Direct labor                                    $4.00

Variable manufacturing overhead   $1.50

Fixed manufacturing overhead   $5.00  

Total product cost per unit              $17.50

Total product costs for 20,000 units = $17.50 * 20,000 = $350,000

b) Product costs are the costs that are incurred to make a product. These costs usually include costs of direct labor, direct materials, consumable production supplies, and factory overhead.

A company prepared the following journal entry:
Dr: Interest expense 10,000
Cr: Discount on bonds payable 2,000
Cr: Cash 8,000
Which of the following statements correctly describes the effect of this journal entry on the financial statements?
A. The bonds payable book value increases by $8,000.
B. CFFF decreases by $2,000.
C. The bonds payable book value decreases by $2,000.
D. CFFO decreases by $8,000.

Answers

Answer:

D. CFFO decreases by $8,000.

Explanation:

First and foremost, the amortization of discount on bonds payable would increase the book value of the bond by $2,000 since discount amortized is added to book value while premium amortized is deducted.

As a result, option A which stated that bonds payable book value increases by $8000 is wrong as well as option C since a  discount amortization increases bonds payable book value and not the way around.

Cash account with a credit of $8,000 showed that the cash paid to bondholders was $8,000, hence, cash flows from operations (CFFO) should decrease by $8,000

Which of the following statements accurately describes the free enterprise
system in the United States?

Answers

Answer:

The statement which accurately describes the free enterprise system in the United States is:

A market system.

Explanation:

The free enterprise system or capitalist system is a free market system where the government does not restrict much of the business activities or property ownership of its citizens. The main features of a free enterprise system are citizens can own private property, supply and demand (or market forces) drive productive activities, consumers and producers are free to make their own economic decisions, and the citizens can freely accumulate wealth.  These features expand on the four great principles of a free enterprise system, which are: private property rights, profit motive, equal individual rights, and unrestricted competition.

What would be the net annual cost of the following checking accounts?
Monthly fee, $3.75; processing fee, 25 cents per check; checks written, an average of 14 a month.
Interest earnings of 4 percent with a $500 minimum balance; average monthly balance, $600; monthly service charge of $15 for falling below the minimum balance, which occurs three times a year (no interest earned in these months).

Answers

Answer:

A.$87 cost

B. $17 net cost

Explanation:

Calculation for the net annual cost

A. Net annual cost=(14 checks×12 months×$0.25) + ($3.75×12 months)

Net annual cost=$42+$45

Net annual cost= $87 cost

Therefore the Net annual cost will be $87 cost

B. Net annual cost=[($600×.04)×9/12 ]-(4%*500+15)

Net annual cost=$18-$35

Net annual cost=$17 net cost

Therefore Net annual cost will be $17 net cost

bonds is selling at $1,132, with 15 years to maturity; it makes an annual coupon payment at 8%. 5 years after the issue, the market interest rate declined and the corporation decided to call the bond at $1,080. The face value of the bond is $1,000. What is the Yield to Call on the bonds

Answers

Answer:

6.26%

Explanation:

The yield to call is the rate of return earned by bondholders over the 5-year period before the bonds were called.

It can be determined using excel rate function as well as financial calculator as shown thus:

=rate(nper,pmt,-pv,fv)

nper=the period between bond issuance and the call in years=5

pmt=annual coupon=face value*coupon rate=$1000*8%=80

pv=the initial purchase price=-1132

fv=the price at which the bonds were called after 5 years=1080

=rate(5,80,-1132,1080)=6.26%

Financial calculator:

N=5

PMT=80

PV=-1132

FV=1080

CPT I/Y=6.26%

Which of the following is not a characteristic of a perfectly competitive market?

Answers

Answer:

Do you have a picture

Explanation:

The characteristic of a perfectly competitive market does not involve that it is difficult for the firm to enter & exit the market.

The following represent the characteristics of the perfectly competitive market:

It deals with homogeneous products. There are many buyers and sellers. Free entry & exit. Each firm should be the price taker.

Therefore, we can conclude that the characteristic of a perfectly competitive market does not involve that it is difficult for the firm to enter & exit the market.

Learn more: brainly.com/question/20421012

Solid Oak Bureau Company uses job costing. Solid Oak Bureau Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information is available:

Estimated amounts Trimming Dept. Finishing Dept.
Direct labor cost $320,000 $400,000
Direct labor hours 25,000 40,000
Manufacturing overhead costs $416,000 $260,00


Actual amounts Trimming Dept. Finishing Dept.
Direct Material requisitioned $22,500 $52,500
Direct Labour cost $35,400 $37,100
Direct Labour hours 5400 5000

What is the predetermined manufacturing overhead rate for the Trimming Department?
a. 77% of direct labor cost
b. 107% of direct labor cost
c.130% of direct labor cost
d. 100% of direct labor cost

Answers

Answer:

c. 130% of direct labor cost

Explanation:

Note : Manufacturing overhead is allocated based on direct labor cost in the Trimming Department.

Where,

Budgeted Overheads are $416,000

Total Direct Labor Cost  are $320,000

Therefore,

Predetermined Overhead Rate = Budgeted Overheads ÷ Total Direct Labor Cost

                                                    = $416,000 ÷ $320,000

                                                    = $1.30 or 130 %      

The predetermined manufacturing overhead rate for the Trimming Department is 130 %  

Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted cash balance per books on May 31.
Cash balance per books, May 31 $3,457
Deposits in transit 131
Notes receivable and interest collected by bank 853
Bank charge for check printing 47
Outstanding checks 1,567
NSF check 180
a. $3,816.
b. $2,730.
c. $1,195.
d. $1,979.

Answers

Answer:

$4,083

Explanation:

Preparation of the Adjusted Cash Balance per Books on May 31

Adjusted Cash Balance per Books on May 31

Cash Balance per Books on May 31 $3,457

Add Notes Receivable and Interest Collected by Bank $853

Less Bank Charge for Check Printing ($47)

Less NSF Check ($180)

Adjusted Cash Balance per Books on May 31 $4,083

Therefore the Adjusted Cash Balance per Books on May 31 will be $4,083

Other Questions
The rising action is the HIGHEST point of the story? True False Which is most associated with the building and repair of cells, organelles, and tissues? A) fiberB) lipidC) sugarD) protein 1. The product of 4, and a number decreased by 7, .is 100. Find the number Which aspect of Darron's career matches his lifestyle but is also in conflict with some of his desires? busyness while at work earning money frequent travel strong competition True or false: Congress made it easy for anyone to purchase land because they didn't think federal land would create income ILL GUVE BRAINIEST Isaac just finished eating an entire pizza. What type of potential energy did the pizza provide Isaac? * PLEASE HELP, I NEED HELP ASAP. ILL GIVE BRAINLIEST!!! whats 45/13 in decimal form rounded to the nearest tenth The unusual strength of a glue makes it able to hold a heavy object, or load, as shown in the diagram below. If the load exerts a strong downward force, the glueA. destroys the force B. exerts a stronger downward force C. causes the load to accelerate upward D. exerts an upward force that is equal to the downward force What is the location of a point 3/4 the distances from -5 to 7?A.-2B.9C.1D.4 2 +2Also whoever gives me the nicest complement gets brainiest2+2 = 4 if you didnt know :) would you use they're or their for more than one person in a group Why is it not possible to be a carrier of Huntingtons disease? 1174=Pleaseeee help This developing organ in teens can easily become addicted to nicotine Help pls and thank:) WILL MARK BRANLYWhat kind of land use is associated with services?1 mining2 manufacturing3 television station4 farming A taxi company charges $2.50 plus $1.10 for each mile driven. How much money would you spend if you travel 8 miles A new business owner would want to know the competitions strengths for all the following reasons EXCEPTA. to be sure the new business does the opposite so that it is different.B. to understand the expectations of customers in the market.C. to figure out how the new business can deliver a superior product or service.D. to recognize what success looks like and build on it in the new business. which of the following statements would not be associated with the green revolution?a. The green revolution involved the use of bio technology and the genetic engineering of plants and animals.b. during the 1960s, US genetic engineers helped to modify wheat so that it could better adapt to wetter and dryer conditions in the field and not spoil.c. The green revolution primarily dealt with the hybridization of crops and the increased usage of erosion control and irrigation.d. transportation improvements were vital during the green revolution in order to get perishable goods to market in a timely manner.e. The green revolution is characterized by large industrial farms and the mass production of food.