Title Concepts

What is the term for a deed that contains no express warranties? a. A bargain and sale deed b. A quitclaim deed c. A warranty deed d. A deed of trust

b.The answer is a quitclaim deed. A quitclaim deed provides the grantee with the least protection of any deed, as it carries no covenants or warranties. The bargain and sale deed contains no express warranties against encumbrances but does imply that the grantor holds title and possession. A warranty deed fully warrants good clear title to a property. A deed of trust is used to create a lien for a loan.

The type of title insurance that will protect the owner and heirs is called a. a lender's policy. b. a leasehold policy. c. an owner's policy. d. a certificate of sale policy.

c. The answer is an owner's policy. An owner's policy is issued for the benefit of owners and their heirs, unlike the lender's policy, which is issued for the mortgage company.

In which of the following situations could a quitclaim deed NOT be used? a. To convey title b. To release a nominal real estate interest c. To warrant that a title is valid d. To remove a cloud on title

c.The answer is to warrant that a title is valid. The quitclaim deed carries no covenants or warranties. It is used to convey less than a fee simple estate or to cure a cloud on the title.

The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that a. the seller owned the property. b. there are no encumbrances against the property. c. the buyer now owns the property subject to certain claims of the seller. d. all of the seller's interest in the property, if any, belongs to the buyer.

d. The answer is all of the seller's interest in the property, if any, belongs to the buyer. The quitclaim deed offers no covenants or warranties, only that the grantor "remises, releases, and quitclaims" interest in the property, if any.