Unit 7: Transfer of Title

Which type of deed merely implies but does NOT specifically warrant that the grantor holds good title to the property?

A) Bargain and sale B) Quitclaim C) Special warranty D) Trust deed Explanation The answer is bargain and sale. By giving a bargain and sale deed, the grantor implies that she actually owns and possesses the property, but there are no express warranties against encumbrances.

The grantee receives greatest protection with what type of deed?

A) Bargain and sale with covenant B) General warranty C) Executor's D) Quitclaim Explanation The answer is general warranty. In the general warranty—often just called warranty—deed, the grantor makes more promises and gives the grantee more covenants than in any other deed.

A deed contains a promise that the title conveyed is good and a promise to obtain and deliver any documents necessary to ensure good title. This deed contains an example of which covenant?

A) Further assurances B) Quiet enjoyment C) Seisin D) Warranty forever Explanation The answer is further assurances. Any promise to obtain documents to make the title good is the covenant of further assurance. The covenants of quiet enjoyment, seisin, and warranty forever are not addressed.

Party Y receives a deed from party X. The granting clause of the deed states, "I hereby remise, release, alienate, and convey to Y the following real property." What type of deed has Y received?

A) Quitclaim B) General warranty C) Bargain and sale D) Special warranty Explanation The answer is special warranty. The quoted granting clause does not use the word quitclaim but does use the word convey. Hence, it is not a quitclaim deed. It does not use the words warrant generally, and so it is not a general warranty deed. Neither does it use the phrase bargain and sell. A special warranty deed uses such words as remise, alienate, and convey.

Eminent domain and escheat are two examples of

A) adverse possession. B) transfers of title by descent. C) voluntary alienation. D) involuntary alienation. Explanation The answer is involuntary alienation. The right of eminent domain allows a government entity to compel the sale of a property to that entity for a price set by court process—condemnation. This transfer of title (alienation) is forced and so is involuntary. When a person dies without a will (intestate) and without heirs, the property passes (escheats) to the state. This process was neither planned nor initiated by the owner before death and so is classified as involuntary.

P signed a deed transferring ownership of P's house to Q. To provide evidence that P's signature was genuine, P executed a declaration before a notary. This declaration is known as an

A) estoppel. B) affidavit. C) acknowledgment. D) affirmation. Explanation The answer is acknowledgment. P gave this acknowledgment as to the validity and voluntary nature of P's signature to a notary. The notary took P's acknowledgment and attached a seal.

A valid will devises a decedent's real estate after payment of all debts, claims, inheritance taxes, and expenses through the

A) granting clause established in the will. B) court action known as probate. C) administrator of the estate. D) law of testate succession. Explanation The answer is court action known as probate. For the title to pass to the devisees, state laws require that on the death of a testor, the will must be filed with the court and probated. Probate is the legal procedure verifying the validity of a will accounting for the decedent's assets.

A deed states that the grantors are conveying all their rights and interests to the grantees to have and to hold. This is communicated in the

A) habendum clause. B) acknowledgment clause. C) restriction clause. D) covenant of seisin. Explanation The answer is habendum clause. The habendum clause defines or explains the ownership to be enjoyed by the grantee, and its provisions must agree with those stated in the granting clause. The habendum clause begins with the words to havie and to hold

The primary heirs of the deceased are the surviving spouse and close blood relatives (such as children, parents, brothers, sisters, aunts, uncles, and, in some cases, first and second cousins) under

A) the state's real estate laws. B) common law. C) federal law. D) a state's statute of descent and distribution. Explanation The answer is a state's statute of descent and distribution. The primary heirs of the deceased are the surviving spouse and close blood relatives (such as children, parents, brothers, sisters, aunts, uncles, and, in some cases, first and second cousins) identified under a state's statute of descent and distribution.

An owner of real estate was declared legally incompetent and was committed to a state mental institution. While institutionalized, the owner wrote and executed a will. The owner died while still institutionalized and was survived by a spouse and three children. The real estate will pass

A) to the owner's spouse. B) to the state. C) to the heirs mentioned in the owner's will. D) according to the state laws of descent. Explanation The answer is according to the state laws of descent. A requirement for a valid will is mental competency of the testator at the time of writing the will. Because of mental incompetence, the owner in question died without a valid will. Consequently, the property will pass to people chosen by state law (statute) to receive property when a decedent has no will (dies intestate).

Land lost through erosion is an example of

A) voluntary alienation. B) adverse possession. C) involuntary acceleration. D) involuntary alienation. Explanation The answer is involuntary alienation. Land lost through erosion is an example of involuntary alienation.