Tennessee Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Tennessee exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Tennessee uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Tennessee law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Tennessee practice.
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Tennessee Escrow & Title — Practice Questions & Answers
117 questions on Escrow & Title from the Tennessee real estate question bank. First 10 are free — sign up to unlock all 117.
Q1. In Tennessee, real estate closings are most commonly handled by:
Explanation
Tennessee is an attorney state where real estate closings are commonly conducted by a licensed attorney or a title company. Attorneys handle title examination and closing procedures.
Q2. A lis pendens recorded against a property indicates:
Explanation
Lis pendens (Latin: 'suit pending') is a notice recorded in public records that a lawsuit has been filed that may affect title to or ownership of the property. It warns potential buyers and lenders of the pending litigation.
Q3. A special warranty deed differs from a general warranty deed in that the grantor:
Explanation
A special warranty deed contains limited covenants—the grantor warrants title only against claims arising from defects that occurred during their period of ownership, not from prior owners.
Q4. RESPA requires that buyers receive the Closing Disclosure:
Explanation
Under RESPA and TRID (TILA-RESPA Integrated Disclosure) rules, the borrower must receive the Closing Disclosure at least 3 business days before the consummation of the mortgage loan transaction.
Q5. Tennessee does not impose a state transfer tax on real estate sales. Instead, the state charges a:
Explanation
Tennessee imposes a recordation tax (not a transfer tax) at a rate of $0.37 per $100 of consideration on deeds conveying real property. Tennessee does not have a traditional real estate transfer tax.
Q6. A title insurance owner's policy protects:
Explanation
An owner's title insurance policy protects the buyer (and their heirs) against losses arising from title defects, liens, encumbrances, or adverse claims that existed before the date of the policy but were not discovered in the title search.
Q7. A quitclaim deed:
Explanation
A quitclaim deed conveys only the grantor's current interest in the property, whatever that may be, with absolutely no warranties. It is commonly used to clear title issues, transfer property between family members, or correct deed errors.
Q8. Chain of title refers to:
Explanation
Chain of title is the complete chronological record of all transfers of ownership for a property, from the original grant to the present owner. A clear chain of title is essential for marketable title.
Q9. A deed must be delivered and accepted to be effective. The primary purpose of recording a deed is to:
Explanation
Recording a deed in the county register of deeds provides constructive (legal) notice to the world of the buyer's ownership. The deed is valid between the parties upon delivery and acceptance, but recording protects against subsequent claims by third parties.
Q10. Actual notice means:
Explanation
Actual notice is direct, firsthand knowledge of a fact. Constructive notice is presumed knowledge based on recorded documents or open possession. Inquiry notice arises from facts that would prompt a reasonable person to investigate further.
Q11. Title insurance is unique among insurance products because it protects against:
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