Real Estate Sales Transfer of Title Questions and Answers Flashcards

What does the covenant of seisin in a general warranty deed guarantee?

Answer: The grantor has the right to convey the property

The covenant of seisin warrants that the grantor owns the estate and has the legal right to convey it.

A buyer discovers after closing that a previous owner's heir has a legitimate claim to the property. Which type of insurance would protect the buyer?

Answer: Title insurance

Title insurance protects the insured against losses from defects in title, including undiscovered claims from prior owners or heirs.

What distinguishes a special warranty deed from a general warranty deed?

Answer: A special warranty deed only warrants against defects arising during the grantor's period of ownership

A special warranty deed limits the grantor's warranties to only those title defects that occurred during their ownership period.

Which legal concept prevents a property owner from denying a fact they previously represented as true regarding title?

Answer: Estoppel

Estoppel prevents a person from asserting a position inconsistent with their prior representations when another party has relied on those representations.

What is the function of an acknowledgment on a deed?

Answer: It confirms the grantor signed voluntarily and is who they claim to be

An acknowledgment is a formal declaration before a notary that the grantor executed the deed voluntarily and verified their identity.

Under the race-notice recording statute, which party prevails in a title dispute?

Answer: The first party to record without notice of a prior unrecorded conveyance

Under race-notice statutes, a subsequent purchaser who records first and had no notice of a prior unrecorded claim will prevail.