Escrow & TitleIntermediateAlabama Exam

A deed that conveys property 'to John Smith and his heirs' creates which type of estate?

ALife estate
BFee simple absoluteCorrect
CFee simple defeasible
DLeasehold estate

Why Fee simple absolute Is Correct

Answer B: Fee simple absolute

The phrase 'and his heirs' in a deed conveys a fee simple absolute estate — the most complete form of ownership that passes to the grantee's heirs.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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