A California deed contains the language: 'I, John Smith, hereby grant to Mary Johnson the following described real property...' This granting clause uses the word 'grant.' Under California Civil Code, what is the legal effect of using the word 'grant' in a deed?
Correct Answer
B) It implies that the grantor has not previously conveyed the property and there are no undisclosed encumbrances by the grantor
Under California Civil Code §1113, the use of the word 'grant' in a conveyance implies two statutory warranties: (1) that the grantor has not previously conveyed the same estate or any interest therein, and (2) that the estate is free from encumbrances done, made, or suffered by the grantor. These warranties are implied by law simply by using the word 'grant.'
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Transfer Of Property Question
Background Knowledge for Transfer Of Property
Real World Application in Transfer Of Property
Common Mistakes to Avoid on Transfer Of Property Questions
Related Topics & Key Terms
Key Terms:
More Transfer Of Property Questions
Determining who pays what at closing involves:
Closing is always the _____ step in real estate transactions.
Depreciation on rental property for federal tax purposes is calculated over:
A title company examines the public records and finds that all deeds in the property's history are properly recorded and connect in an unbroken sequence. This unbroken sequence of ownership is called the
In a jurisdiction where a later purchaser must both lack notice and record before the earlier claimant records, what kind of recording act applies?
- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
- → A buyer drives past the property and sees someone other than the seller living there and maintaining the yard. This observation should put the buyer on what type of notice?
- → In a covered purchase transaction, the borrower receives a final form showing the loan terms, cash to close, and settlement charges shortly before consummation. What form is this?
- → Along with the signed offer, Quinn Brooks delivers a check to demonstrate serious intent to complete the transaction if the offer is accepted. What is this deposit called?
- → On a settlement statement, the buyer's earnest money reduces the remaining cash needed to close. How is that item characterized?
- → On a settlement statement, an item increases the buyer's amount due at closing. How is that item characterized?
- → On the seller's settlement statement, the purchase price of $400,000 appears as what?
- → At closing, the purchase price of $350,000 appears on the buyer's side of the settlement statement. Is this amount a debit or a credit to the buyer?
- → Under TRID rules, the lender must deliver the Closing Disclosure to the borrower at least how many business days before loan consummation?
- → In an escrow closing, the escrow agent discovers that the seller has not yet provided the signed deed. What should the escrow agent do?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
Patricia purchases a vacant lot in Napa County, California. Her CLTA title insurance policy was issued for $300,000. Five years later, she builds a home on the lot, increasing the property value to $800,000. A title defect from before her purchase is then discovered. What is the maximum amount Patricia can recover from her title insurance company?
Next Question
An investor in California holds title to a commercial property through an LLC. The investor wants to sell the property. The buyer's title company issues a preliminary title report. In reviewing the report, the buyer notices that a deed of trust from a prior owner was never formally reconveyed after the underlying loan was paid off. What document must be obtained to clear this title issue?