Escrow & TitleIntermediateAlabama Exam

Which type of deed would a grantor use to convey property while retaining a life estate?

AWarranty deed with reservationCorrect
BQuitclaim deed with right of first refusal
CSheriff's deed
DAdministrator's deed

Why Warranty deed with reservation Is Correct

Answer A: Warranty deed with reservation

A grantor can use a warranty deed with a reservation clause to convey property to a grantee while retaining a life estate (right to use the property for their lifetime).

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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