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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
Easy59 (30%)
Medium97 (49%)
Hard44 (22%)
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

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 parcel in Fayetteville has an assessed value of $355,000.00. The county tax rate is $0.68 per $100 of value and the municipality's rate is $0.31 per $100. What is the annual ad valorem tax bill?

EASY

A parcel in Wilmington has an assessed value of $489,500.00. The county tax rate is $0.54 per $100 of value and the municipality's rate is $0.00 per $100. What is the annual ad valorem tax bill?

EASY

New Jersey's Realty Transfer Fee is paid by:

MEDIUM

A training instructor in Carrboro is updating the policy manual on property tax listing, January 1 rules, and tax-bill calculations. Which statement best applies under current North Carolina law?

EASY

A training instructor in Cary is answering a client question about the North Carolina conveyance tax at $1 per $500. Which statement best applies under current North Carolina law?

EASY

Nevada has:

EASY

Washington's property tax exemptions include:

EASY

A broker-in-charge in North Carolina is revising a training memo on the North Carolina conveyance tax at $1 per $500. Which statement is NOT accurate under current North Carolina law?

EASY

A provisional broker in Raleigh is answering a client question about the North Carolina conveyance tax at $1 per $500. Which statement best applies under current North Carolina law?

EASY

New Mexico has which type of transfer tax?

EASY

A buyer representative in Winston-Salem is preparing an exam-prep note on the North Carolina conveyance tax at $1 per $500. Which statement best applies under current North Carolina law?

EASY

A firm owner in Asheville is preparing an exam-prep note on property tax listing, January 1 rules, and tax-bill calculations. Which statement best applies under current North Carolina law?

MEDIUM

A listing broker in High Point is preparing an exam-prep note on the North Carolina conveyance tax at $1 per $500. Which statement best applies under current North Carolina law?

EASY

Minnesota offers property tax refunds through:

EASY

In Pennsylvania, transfer tax is typically paid by:

EASY

A closing-file reviewer in Huntersville is preparing an exam-prep note on the North Carolina conveyance tax at $1 per $500. Which statement best applies under current North Carolina law?

EASY

A provisional broker in Wilmington is preparing an exam-prep note on property tax listing, January 1 rules, and tax-bill calculations. Which statement best applies under current North Carolina law?

MEDIUM

Delaware real estate transfer tax is:

MEDIUM

A provisional broker in Wilmington is preparing an exam-prep note on the North Carolina conveyance tax at $1 per $500. Which statement best applies under current North Carolina law?

EASY

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

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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