Delaware Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Delaware exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Delaware requires a licensed attorney to conduct real estate closings — unlike escrow states — which shapes how these questions are framed on the DE exam. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Delaware practice.
Delaware Exam Study Resources
Everything you need to pass — in one place.
Delaware Escrow & Title — Practice Questions & Answers
128 questions on Escrow & Title from the Delaware real estate question bank. First 10 are free — sign up to unlock all 128.
Q1. In Delaware, transfer taxes on a real estate sale are:
Explanation
In Delaware, the realty transfer tax (state and county combined) is customarily split equally between the buyer and the seller, although the parties may negotiate otherwise.
Q2. A special warranty deed in Delaware warrants title only against defects arising:
Explanation
A special warranty deed provides a limited warranty — the grantor only warrants title against defects that arose during their ownership of the property. It does not warrant against defects that existed before they took title.
Q3. Which type of deed provides NO warranties of title?
Explanation
A quitclaim deed conveys only whatever interest the grantor currently holds (if any) with no warranties. It is often used to clear title defects, transfer property between family members, or correct errors in prior deeds.
Q4. In a Delaware real estate closing, the HUD-1 or Closing Disclosure shows:
Explanation
The Closing Disclosure (formerly the HUD-1 Settlement Statement) is a detailed accounting of all financial aspects of the real estate transaction, including the purchase price, loan amount, credits, prorations, and closing costs allocated to each party.
Q5. Delaware is known as a(n) _____ state because an attorney must conduct the real estate closing.
Explanation
Delaware is an attorney closing state, meaning a licensed attorney must preside over real estate closings. This distinguishes it from escrow states where title companies or escrow officers handle closings.
Q6. Title insurance protects against:
Explanation
Title insurance protects against losses arising from defects in title that existed prior to the policy date, such as undisclosed liens, forged deeds, or errors in public records.
Q7. An owner's title insurance policy in Delaware is typically purchased by:
Explanation
While customs vary, owner's title insurance in Delaware is typically negotiated as part of the purchase agreement; either party may pay depending on the contract terms.
Q8. Earnest money deposited in a Delaware real estate transaction must be held in:
Explanation
Delaware law requires that earnest money and other client funds be deposited in a federally insured escrow or trust account, kept separate from the broker's operating and personal accounts.
Q9. A cloud on title refers to:
Explanation
A cloud on title is any outstanding claim, lien, encumbrance, or defect that makes the title uncertain or unmarketable. A title search and quiet title action may be needed to resolve it.
Q10. In Delaware, a deed is officially recorded at the:
Explanation
In Delaware, deeds and other real property instruments are recorded at the Office of the Recorder of Deeds in the county (New Castle, Kent, or Sussex) where the property is located.
Q11. The purpose of a title search is to:
118 more Escrow & Title questions
Create a free account to unlock all 128 Delaware Escrow & Title questions with full explanations.
Free account · No credit card · Instant access to 25 questions
Ready to take the full exam? Start free.
25 free questions · No signup · Instant access to all Delaware topics