Escrow & TitleIntermediateCalifornia Exam

What is the purpose of a grant deed in California?

ATo transfer title from one party to another with implied warrantiesCorrect

BTo pledge property as collateral for a loan, under standard California escrow and title practice

CTo create an easement, as typically handled by an escrow officer

DTo release a lien, consistent with standard title insurance practice

Why To transfer title from one party to another with implied warranties Is Correct

Answer A: To transfer title from one party to another with implied warranties

A grant deed is the most common deed used in California to transfer title. It contains two implied warranties: (1) the grantor has not previously conveyed the property to anyone else, and (2) the property is free from undisclosed encumbrances made by the grantor.

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).

Easement

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

Encumbrance

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

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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