Real Estate Sales Exam Real Estate Sales Transfer of Title Questions and Answers 2

Question 1

Which type of deed provides the LEAST protection to the grantee?

Accepted Answer

Quitclaim deed

Answer

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?

Accepted Answer

To discover any defects, liens, or encumbrances on the title

Answer

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?

Accepted Answer

Satisfaction of mortgage

Answer

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?

Accepted Answer

When the deed is delivered and accepted by the grantee

Answer

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?

Accepted Answer

Constructive notice

Answer

Recording a deed in the public records provides constructive notice to the world that the property has changed ownership.

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