Escrow & TitleIntermediateCalifornia Exam

What is a warranty deed?

AA deed with no guarantees, per customary closing procedure in California

BA deed where the grantor guarantees clear title and will defend against future claimsCorrect

CA deed used only for commercial property, under standard California escrow and title practice

DA deed issued by the government, as typically handled by an escrow officer

Why A deed where the grantor guarantees clear title and will defend against future claims Is Correct

Answer B: A deed where the grantor guarantees clear title and will defend against future claims

A warranty deed (general warranty deed) contains express covenants where the grantor warrants clear title and promises to defend the grantee against any future title claims.

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).

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).

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.

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.

Easement

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