An estate conveys a house to a buyer for $265,000 using a deed that warrants only against defects arising during the 6 years the deceased held title.
Correct Answer
D) A special warranty deed, which covers only the grantor's 6 years
A special warranty deed warrants against defects arising while the grantor held title and says nothing about what came before, which is why estates and lenders use it. Other choices: a general warranty deed reaches back through the whole chain, which no executor will promise; a quitclaim makes no warranty at all, and this deed makes one; and a bargain and sale deed likewise carries none. Source: Deed types; no state recording rule asserted
Why This Is the Correct Answer
A special warranty deed warrants against defects arising while the grantor held title and says nothing about what came before, which is why estates and lenders use it. Other choices: a general warranty deed reaches back through the whole chain, which no executor will promise; a quitclaim makes no warranty at all, and this deed makes one; and a bargain and sale deed likewise carries none. Source: Deed types; no state recording rule asserted
More Mortgage Knowledge Questions
A subordinate-lien home equity loan closes at an APR of 9.4% when the average prime offer rate for a comparable transaction is 6.1%.
In a closing-readiness check, a risk reviewer sees facts tied to TILA Truth in Advertising. What should the file reflect?
In a training scenario, a trainee asks which official source controls FHA single-family origination policy. What action best follows the rule?
A compliance analyst compares the file facts with LTV Ratio Calculation during a licensing team review. Which conclusion is accurate?
A branch manager asks about a loan file because a trainee asks which official source controls FHA single-family origination policy. What should happen?
The loan team compares the file facts with ARM Cap Structures during a borrower follow-up call. Which conclusion is accurate?
A borrower has a 30-year fixed-rate mortgage with monthly principal and interest of $1,450. Property taxes increase, and taxes are paid through escrow. What can happen to the total monthly payment?
A loan has an outstanding principal balance of $240,000 and a 6% annual interest rate. Using simple monthly accrual, how much interest accrues for one month?
An annual escrow analysis projects a $780 shortage. The borrower asks how it will be collected.
What does an amortization schedule show for each scheduled payment?
People Also Study
Federal Mortgage-Related Laws
24% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam