Real Estate Sales Transfer of Title Questions and Answers

Question 1

A seller is conveying property to a buyer and wants to guarantee the title is clear only for the duration of their own ownership, not against any prior defects.
Which type of deed would accomplish this?

Accepted Answer

Special Warranty Deed

Answer

General Warranty Deed

Answer

Quitclaim Deed

Answer

Bargain and Sale Deed

Question 2

The process by which a government entity can acquire privately owned real estate for public use, after providing just compensation to the owner, is known as:

Accepted Answer

Condemnation

Answer

Escheat

Answer

Adverse Possession

Answer

Foreclosure

Question 3

For a deed to be valid and effectively transfer title, several elements are essential. Which of the following is NOT a requirement for a valid deed?

Accepted Answer

Signature of the grantee

Answer

Words of conveyance (granting clause)

Answer

An adequate legal description of the property

Answer

Signature of the grantor

Question 4

A property owner sells their house to Buyer A, who pays in full but fails to record the deed. A week later, the owner fraudulently sells the same house to Buyer B, who is unaware of the prior sale. Buyer B immediately records their deed. In a 'notice' jurisdiction, who generally has superior title to the property?

Accepted Answer

Buyer B, because they were an innocent purchaser for value without notice.

Answer

Buyer A, because they were the first to purchase.

Answer

The original owner, because the sales were fraudulent.

Answer

The title will be split between Buyer A and Buyer B.

Question 5

A homebuyer purchases an owner's title insurance policy at closing. What is the primary function of this policy?

Accepted Answer

To protect the buyer from financial loss due to title defects that existed prior to the purchase.

Answer

To guarantee the buyer will not suffer any future physical damage to the property.

Answer

To ensure the property will appreciate in value over time.

Answer

To cover the lender's interest in the property in case of the buyer's default.

Question 6

An individual dies intestate and has no identifiable heirs. What is the legal process by which the ownership of their real property transfers to the state?

Accepted Answer

Escheat

Answer

Probate

Answer

Devise

Answer

Foreclosure

A seller is conveying property to a buyer and wants to guarantee the title is clear only for the duration of their own ownership, not against any prior defects.Which type of deed would accomplish this?

A seller is conveying property to a buyer and wants to guarantee the title is clear only for the duration of their own ownership, not against any prior defects.
Which type of deed would accomplish this?