Transfer of title Practice Questions

10 sample transfer of title questions, answered

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

1. 1. A deed executed solely to fix a misspelled name or an error in the legal description contained in an earlier deed is a:

   • ASpecial warranty deed
   • BTrustee deed given at foreclosure
   • CQuitclaim deed
   • DCorrection deedcorrect

   Why: An instrument whose only job is to repair a prior deed is a "Correction deed", also called a deed of confirmation or reformation. A quitclaim deed is used to release an interest rather than to restate a corrected description.

   Transfer of title

2. 2. A buyer records a deed after closing. What should be checked in the recorded copy?

   • AOnly the index date without reviewing the recorded instrument
   • BCorrect parties, legal description and recording informationcorrect
   • COnly the receipt showing that a recording fee was paid
   • DOnly the seller signature without checking the described parcel

   Why: Reviewing the recorded instrument helps detect execution or recording errors. A receipt alone may not reveal a mistaken name or description.

   Transfer of title

3. 3. Recording a deed in the public records gives:

   • APriority over every interest recorded earlier in time
   • BActual notice to the grantee alone
   • CConstructive notice to the world of the grantee's interestcorrect
   • DA warranty of title issued by the county

   Why: Recording supplies "Constructive notice to the world of the grantee's interest", so later parties are charged with knowledge whether they look or not. It cannot leapfrog interests recorded earlier, because priority generally follows the order of recording.

   Transfer of title

4. 4. Two interests compete for priority, and the agent remembers a rule from another state. What should determine the analysis?

   • AA universal first-signed rule without regard to the governing statute
   • BThe later purchase price without examining notice or recording
   • CThe assumption that every state follows identical priority rules
   • DThe applicable recording statute and transaction factscorrect

   Why: Recording priority rules differ among jurisdictions. Recording dates, notice, value and other statutory requirements may affect the outcome.

   Transfer of title

5. 5. In a Torrens jurisdiction, an interest in the land that is not noted on the certificate of title generally:

   • AAutomatically becomes a lien against the registered parcel
   • BRemains fully enforceable against the registered owner
   • CDoes not affect the registered titlecorrect
   • DMust be separately insured by the buyer before closing

   Why: Because the certificate is conclusive, an unnoted interest "Does not affect the registered title". Treating it as still enforceable would apply ordinary recording-act reasoning and defeat the certainty Torrens registration provides.

   Transfer of title

6. 6. Chain of title is best described as:

   • AThe record of successive conveyances of a parcel from owner to owner over timecorrect
   • BA list of every lien presently encumbering the parcel
   • CThe insurance policy that protects a lender against undiscovered defects in title
   • DThe legal description tracing the boundary lines of the parcel

   Why: Chain of title is "The record of successive conveyances of a parcel from owner to owner over time", and a gap in it is a serious defect. A list of current liens is an encumbrance report, which addresses claims rather than ownership succession.

   Transfer of title

7. 7. Title to real property passes from grantor to grantee at the moment the deed is:

   • ASigned by the grantor
   • BAcknowledged before a notary public
   • CDelivered to and accepted by the granteecorrect
   • DRecorded in the public records

   Why: Transfer occurs when the deed is "Delivered to and accepted by the grantee", which is why an unrecorded deed can still pass title. Recording is the classic wrong answer because it affects notice and priority rather than the passing of title.

   Transfer of title

8. 8. A general warranty deed promises broader title protection than a special warranty limited to the grantor's ownership period. Which distinction matters?

   • AThe assumption that both deeds warrant only the physical building condition
   • BThe assumption that a special warranty covers every earlier owner equally
   • CThe assumption that recording makes all deed covenants identical
   • DThe scope of the grantor's title covenantscorrect

   Why: The relevant difference is the reach of the title promises. State terminology and the actual deed language should also be checked.

   Transfer of title

9. 9. A lender policy of title insurance protects:

   • AThe lender up to the outstanding balance of the secured loancorrect
   • BBoth parties for the full market value of the property
   • CThe seller against claims later brought by the buyer
   • DThe borrower up to the full purchase price of the property

   Why: The lender policy covers "The lender up to the outstanding balance of the secured loan" and shrinks as the loan is paid down. It gives the borrower no protection, which is why a separate owner policy is recommended at closing.

   Transfer of title

10. 10. The clause in a deed containing the actual words of conveyance, such as convey and warrant, is the:

    • AReddendum clause
    • BDefeasance clause
    • CHabendum clause
    • DGranting clausecorrect

    Why: The words of conveyance appear in the "Granting clause", which is why it is essential to every deed. The habendum clause follows and describes the extent of the estate rather than making the transfer.

    Transfer of title