Real Estate Sales Exam Real Estate Sales Transfer of Title Questions and Answers 2 — Questions and Answers
Question 1: Which type of deed provides the LEAST protection to the grantee?
- General warranty deed
- Special warranty deed
- Quitclaim deed (Correct answer)
- Bargain and sale deed
Correct answer: Quitclaim deed
A quitclaim deed conveys only whatever interest the grantor may have, with no warranties or guarantees of title.
Question 2: What is the primary purpose of a title search?
- To determine the property's market value
- To discover any defects, liens, or encumbrances on the title (Correct answer)
- To verify the property's zoning classification
- To confirm the property's tax assessment
Correct answer: To discover any defects, liens, or encumbrances on the title
A title search examines public records to identify any claims, liens, or defects that could affect ownership rights.
Question 3: Which document is used to remove a cloud on title caused by a paid-off mortgage?
- Deed of trust
- Satisfaction of mortgage (Correct answer)
- Lis pendens
- Abstract of title
Correct answer: Satisfaction of mortgage
A satisfaction of mortgage is recorded to publicly confirm that the mortgage debt has been fully paid and the lien released.
Question 4: In a real estate transaction, when does legal title typically transfer from seller to buyer?
- When the purchase agreement is signed
- When the deed is delivered and accepted by the grantee (Correct answer)
- When the title insurance policy is issued
- When the closing funds are disbursed
Correct answer: When the deed is delivered and accepted by the grantee
Legal title transfers upon delivery of the deed by the grantor and acceptance by the grantee.
Question 5: What type of notice is provided by recording a deed in the public records?
- Actual notice
- Constructive notice (Correct answer)
- Inquiry notice
- Implied notice
Correct answer: Constructive notice
Recording a deed in the public records provides constructive notice to the world that the property has changed ownership.
Question 6: Which of the following is NOT a requirement for a valid deed?
- Competent grantor
- Identifiable grantee
- Recording in public records (Correct answer)
- Legal description of the property
Correct answer: Recording in public records
Recording is recommended to protect the grantee's interest but is not required for a deed to be valid between the parties.
Real Estate Sales Exam Real Estate Sales Transfer of Title Questions and Answers 2
Which type of deed provides the LEAST protection to the grantee?