Escrow & TitleIntermediateCalifornia Exam

A grant deed in California contains which of the following implied warranties?

AThe grantor warrants title against all defects ever, under standard California escrow and title practice
BThe grantor warrants they have not previously conveyed the property to anyone else and that the property is free of undisclosed encumbrances created by the grantorCorrect
CThe grantor guarantees the property is free of all environmental hazards, as typically handled by an escrow officer
DThe grantor guarantees the property will appreciate in value, consistent with standard title insurance practice

Why The grantor warrants they have not previously conveyed the property to anyone else and that the property is free of undisclosed encumbrances created by the grantor Is Correct

Answer B: The grantor warrants they have not previously conveyed the property to anyone else and that the property is free of undisclosed encumbrances created by the grantor

Under California Civil Code Section 1113, a grant deed contains two implied covenants: (1) the grantor has not previously conveyed the same estate to anyone else, and (2) the property is free from encumbrances made by or under the grantor. These implied warranties are limited to the grantor's period of ownership.

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.

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