Escrow & TitleIntermediateCalifornia Exam

Which type of deed offers the most protection to the grantee?

AQuitclaim deed, under standard California escrow and title practice

BGrant deed, as typically handled by an escrow officer

CGeneral warranty deedCorrect

DSheriff's deed, consistent with standard title insurance practice

Why General warranty deed Is Correct

Answer C: General warranty deed

A general warranty deed (not commonly used in California) offers the most protection — the grantor warrants the title against all claims, including those arising from before the grantor owned the property. In California, grant deeds are most common.

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).

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).

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.