Kentucky Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Kentucky exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Kentucky uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Kentucky law. 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 Kentucky practice.
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Kentucky Escrow & Title — Practice Questions & Answers
80 questions on Escrow & Title from the Kentucky real estate question bank. First 10 are free — sign up to unlock all 80.
Q1. A quitclaim deed:
Explanation
A quitclaim deed conveys only whatever interest the grantor currently holds — with no warranties of title. It provides the least protection to the buyer.
Q2. At closing, proration of real estate taxes means:
Explanation
Tax proration divides annual property taxes between the buyer and seller based on their respective periods of ownership during the tax year.
Q3. Which of the following is a voluntary lien on real property?
Explanation
A mortgage lien is a voluntary lien because the owner willingly pledges the property as security for the loan. Tax liens, mechanic's liens, and judgment liens are involuntary.
Q4. Which type of title insurance policy protects the lender's interest?
Explanation
A lender's (mortgagee's) title insurance policy protects the lender's interest up to the loan amount. An owner's policy protects the buyer's equity.
Q5. A general warranty deed contains which of the following covenants?
Explanation
A general warranty deed typically contains covenants of seisin, quiet enjoyment, against encumbrances, further assurance, and warranty forever, providing full protection to the grantee.
Q6. A title search examines public records to:
Explanation
A title search reviews public records to trace ownership history (chain of title) and identify any existing liens, encumbrances, or other defects that could affect the buyer's ownership.
Q7. An abstract of title is:
Explanation
An abstract of title is a condensed history of all recorded documents affecting the property's title, which an attorney uses to issue a title opinion.
Q8. In Kentucky, deeds are recorded in the:
Explanation
In Kentucky, deeds and other real property documents are recorded in the county clerk's office in the county where the property is located.
Q9. A deed must be delivered and accepted to be considered legally effective because:
Explanation
Delivery and acceptance are essential to a valid conveyance. The grantor must voluntarily deliver the deed and the grantee must accept it for title to transfer.
Q10. Kentucky's real property transfer tax is paid by:
Explanation
In Kentucky, the real property transfer tax (deed tax) is typically paid by the seller at the time the deed is recorded.
Q11. A lis pendens is a recorded notice that:
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