Escrow & TitleIntermediateCalifornia Exam

What is a 'grant deed'?

AA deed used only for government property transfers, as typically handled by an escrow officer

BA deed that implies the grantor owns the property and has not conveyed it to anotherCorrect

CA deed that guarantees clear title, consistent with standard title insurance practice

DA deed used for gifts of property, per customary closing procedure in California

Why A deed that implies the grantor owns the property and has not conveyed it to another Is Correct

Answer B: A deed that implies the grantor owns the property and has not conveyed it to another

A grant deed is the most common deed in California. It contains two implied warranties: the grantor owns the property and has not previously transferred it, and there are no undisclosed encumbrances.

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.

People Also Study

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.

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.

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.

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