Escrow & Title

In South Dakota, when a 'quitclaim deed' is given in lieu of foreclosure, the deed transfers to the lender:

AAll of the borrower's interest in the property, with no title warranties✓ Correct
BClear title, free of all liens
COnly the borrower's equity above the mortgage balance
DThe right to use the property pending formal foreclosure

Explanation

A quitclaim deed in lieu of foreclosure transfers whatever interest the borrower has to the lender, with no warranties. The lender may still have to address junior liens that survive the deed in lieu.

Related South Dakota Escrow & Title Questions

Practice More South Dakota Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free South Dakota Quiz →