Escrow & TitleIntermediateCalifornia Exam

A grant deed in California implies which warranties?

ANo warranties whatsoever, under standard California escrow and title practice

BThat the grantor has not previously conveyed the property and that there are no undisclosed encumbrancesCorrect

CFull warranty against all defects in title, as typically handled by an escrow officer

DOnly that the grantor holds title, consistent with standard title insurance practice

Why That the grantor has not previously conveyed the property and that there are no undisclosed encumbrances Is Correct

Answer B: That the grantor has not previously conveyed the property and that there are no undisclosed encumbrances

A California grant deed contains two implied warranties: (1) the grantor has not previously conveyed the property to anyone else, and (2) the property is free from encumbrances made by the grantor that are not disclosed in the deed.

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

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.

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Escrow

A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.

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Key Terms to Know

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.

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Abstract of Title

A condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.

Math Concepts

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