Real Estate Sales Exam Transfer of Title 2 — Questions and Answers
Question 1: Which type of deed provides the GREATEST protection to a grantee?
- Quitclaim deed
- Bargain and sale deed
- General warranty deed (Correct answer)
- Special warranty deed
Correct answer: General warranty deed
A general warranty deed contains six covenants warranting title against all defects, including those arising before the grantor owned the property.
Question 2: What does a quitclaim deed convey?
- Fee simple title with full warranties
- Only the grantor's present interest, whatever it may be (Correct answer)
- Clear title free of all encumbrances
- Title insured against prior claims
Correct answer: Only the grantor's present interest, whatever it may be
A quitclaim deed transfers only whatever interest the grantor currently holds, with no warranties or guarantees of title quality.
Question 3: The covenant in a general warranty deed that promises the grantor has the right to convey the property is called the covenant of:
- Seisin (Correct answer)
- Quiet enjoyment
- Further assurance
- Warranty forever
Correct answer: Seisin
The covenant of seisin guarantees that the grantor actually owns and possesses the estate being conveyed.
Question 4: A deed signed by a grantor who is legally incompetent is:
- Valid and fully enforceable
- Voidable at the grantor's option only
- Void and has no legal effect (Correct answer)
- Valid only if notarized
Correct answer: Void and has no legal effect
A deed executed by a legally incompetent person is void ab initio because that person lacks the legal capacity to contract.
Question 5: Which of the following is NOT a required element for a valid deed?
- Grantor's signature
- Adequate consideration
- Legal description of property
- Grantee's signature (Correct answer)
Correct answer: Grantee's signature
A deed does not require the grantee's signature; only the grantor must sign, and the grantee must accept delivery.
Question 6: A special warranty deed differs from a general warranty deed in that it:
- Requires no consideration
- Only warrants against defects arising during the grantor's ownership (Correct answer)
- Transfers no warranties whatsoever
- Must be signed by both grantor and grantee
Correct answer: Only warrants against defects arising during the grantor's ownership
A special warranty deed limits the grantor's warranty to title defects that occurred only during the period the grantor owned the property.
Question 7: Recording a deed protects the grantee primarily against:
- Physical encroachments from neighbors
- Subsequent bona fide purchasers who claim the same property (Correct answer)
- Zoning violations discovered after closing
- Environmental liens that predate the purchase
Correct answer: Subsequent bona fide purchasers who claim the same property
Recording gives constructive notice to the world, preventing a later purchaser from claiming they were unaware of the prior conveyance.
Real Estate Sales Exam Transfer of Title 2
Which type of deed provides the GREATEST protection to a grantee?