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Transfer of Title

Deeds, title insurance, escrow, and closing procedures

200 questions10 concepts
Transfer of Title β€” Study Card
Transfer of Title study card infographic showing key concepts, exam weight (8%), and memory aids
AI-generated study card for Transfer of Title. Covers 8% of the real estate exam.
Difficulty Breakdown
Easy60 (30%)
Medium108 (54%)
Hard32 (16%)
Study Tips for Title Transfer
  • β€’Deed hierarchy: General Warranty > Special Warranty > Bargain and Sale > Quitclaim
  • β€’Quitclaim deed = NO warranties at all (used for clearing title clouds)
  • β€’Recording is optional but protects priority against later claims
  • β€’Owner's title insurance protects buyer; lender's policy protects the mortgage lender

Learn this first β€” free lessons on Transfer of Title

Key Concepts

Deed

A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.

General Warranty Deed

A general warranty deed provides the greatest protection to the grantee by guaranteeing that the grantor holds clear title and has the right to sell the property. It includes covenants that protect against all defects in title, even those arising before the grantor owned the property.

Special Warranty Deed

A special warranty deed guarantees that the grantor has not caused any title defects during their period of ownership, but does not warrant against defects that existed before the grantor acquired the property.

Quitclaim Deed

A quitclaim deed transfers whatever interest the grantor may have in a property without making any warranties or guarantees about the quality of title. It offers the least protection to the grantee.

Bargain and Sale Deed

A bargain and sale deed implies that the grantor holds title and possession of the property but does not include warranties against encumbrances or title defects.

Deed Requirements (Essential Elements)

For a deed to be valid, it must contain several essential elements including a competent grantor, identifiable grantee, consideration, legal description, granting clause, signature of the grantor, and delivery and acceptance.

Title Search

A title search is an examination of public records to determine the history of ownership, liens, encumbrances, and other interests affecting a property. It verifies that the seller has the legal right to transfer the property.

Title Insurance

Title insurance is a policy that protects the insured party against financial loss from defects in title that were not discovered during the title search. Unlike other insurance, it covers past events rather than future risks.

Abstract of Title

An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.

Chain of Title

The chain of title is the sequential history of all transfers of ownership for a specific property, from the original source (typically a government patent or grant) to the present owner. An unbroken chain is essential for marketable title.

Practice Questions

Taxes(113)

A deed for property in Chapel Hill recites consideration of $501,200.00. Using North Carolina's statewide conveyance tax rule of $1 per $500 or fractional part, what tax is due on the conveyance?

HARD

An exam-prep coach in Mooresville is sorting out a file issue involving property tax listing, January 1 rules, and tax-bill calculations. Which statement best applies under current North Carolina law?

HARD

An office manager in Cary is reviewing the North Carolina conveyance tax at $1 per $500. Which statement is NOT accurate under current North Carolina law?

EASY

A closing-file reviewer in Wilmington is updating the policy manual on North Carolina tax calculations, conveyance tax, and prorations. Which statement best applies under current North Carolina law?

HARD

A compliance reviewer in Apex is updating the policy manual on the North Carolina conveyance tax at $1 per $500. Which statement best applies under current North Carolina law?

EASY

Nebraska homestead exemption for property tax:

MEDIUM

Virginia offers property tax relief for:

EASY

An office manager in New Bern is answering a client question about North Carolina tax calculations, conveyance tax, and prorations. Which statement best applies under current North Carolina law?

HARD

On a North Carolina exam item about property tax listing, January 1 rules, and tax-bill calculations, which concept is being defined? Here is the description. Description: The common North Carolina convention for expressing local property tax rates.

HARD

In most Illinois counties, property tax bills are typically issued how many times per year?

EASY

At settlement in Charlotte, the closing attorney uses a 365-day calendar-year proration and charges the seller with 90 days of the year's real property taxes under Form 2-T. If the annual real property tax bill is $4,380.00, what is the buyer's prorated share?

HARD

Maryland's state transfer tax rate is:

MEDIUM

A compliance reviewer in Chapel Hill is revising a training memo on property tax listing, January 1 rules, and tax-bill calculations. Which statement is NOT accurate under current North Carolina law?

HARD

In Massachusetts, property tax bills are due:

EASY

In Illinois, which statement correctly describes equalized assessed value (EAV)?

MEDIUM

Oregon has which type of transfer tax?

MEDIUM

Louisiana has which type of transfer tax?

MEDIUM

Texas homestead exemption for those 65 and older includes:

MEDIUM

A buyer representative in Concord is sorting out a file issue involving North Carolina tax calculations, conveyance tax, and prorations. Which statement best applies under current North Carolina law?

EASY

Minnesota Homestead Classification provides:

MEDIUM

+ 93 more questions

Transfer of Title: What You Need to Know

Transfer of Title covers the legal process of transferring property ownership from one party to another. This topic includes deeds, the recording system, title searches, title insurance, and the closing process β€” all essential knowledge for facilitating real estate transactions.

Understand the hierarchy of deeds based on the level of protection they provide: General Warranty Deed offers the most protection with five covenants (seisin, quiet enjoyment, against encumbrances, further assurance, warranty forever), Special Warranty Deed warrants only against defects during the grantor's period of ownership, Bargain and Sale Deed implies ownership but provides no warranties, and Quitclaim Deed transfers whatever interest the grantor has with no warranties at all.

For a deed to be valid, it must have a competent grantor, identifiable grantee, words of conveyance (granting clause), adequate legal description, and be signed by the grantor. Delivery and acceptance are required to complete the transfer. Recording is not required for validity between the parties but protects against subsequent claims. Title insurance protects against undiscovered defects β€” lender's policies protect the lender while owner's policies protect the buyer.

Frequently Asked Questions

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