Property OwnershipAdvancedArizona Exam

In Arizona, which type of deed is most commonly used by sheriffs or trustees in foreclosure sales?

AA general warranty deed in which the grantor warrants title against all defects and encumbrances, whether arising before or after the grantor received the property

BA special warranty deed in which the grantor warrants title only against claims arising from the grantor's own period of ownership and not from any prior period

CA quitclaim deed in which the grantor conveys whatever interest they hold in the property without making any warranty about the nature or extent of that interest

DTrustee's deed or sheriff's deed (no warranties)Correct

Why Trustee's deed or sheriff's deed (no warranties) Is Correct

Answer D: Trustee's deed or sheriff's deed (no warranties)

In foreclosure, a trustee's deed (deed of trust foreclosure) or sheriff's deed (judicial foreclosure) is issued. These deeds convey only the interest held by the trustee or court and provide no title warranties.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

People Also Study

Key Terms to Know

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Comparable Sales (Comps)

Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.

Easement

A non-possessory right to use another person's land for a specific purpose.