Unit 7: Transfer of Title Test

Types of Deeds

The most common deeds include the general warranty deed, special warranty deed, bargain and sale deed, and quitclaim deed. Match each example with the appropriate deed. 
Each sentence or phrase below has a number associated with it. Drag and then drop each number to its appropriate target at the top of the activity. When finished, click Submit. Once submitted, each correct number will remain in the appropriate target. Each incorrect number will turn red and return to its original place. Please note you will need to correctly answer each item for the activity to be considered complete.

1. Special warranty

- Provides the protection that the grantor received title and that the property was not encumbered during the time the grantor held title, except as otherwise noted in the deed.

2. Bargain and sale

- Contains no express warranties against encumbrances

- Implies that the grantor holds title and possession of the property

3. Quitclaim

- Provides grantee with the least protection of any deed

- Carries no covenants or warranties and generally conveys only whatever interest the grantor may have when the deed is delivered.

4. General warranty

- Grantor is legally bound by certain covenants (promises) or warranties.

- Provides the greatest protection to the buyer

A title is not considered transferred until the deed is actually delivered to and accepted by the grantee. The grantor must deliver the deed to the grantee personally. (False)

The owner who transfers the title is called the grantor, and the person who acquires the title is called the grantee. (True)

Four Conditions of Adverse Possession

Acquiring property through adverse possession requires that the claimant meet statutory requirements. Match each term with the appropriate definition. 

Match the objects to the appropriate targets by clicking one item in the left-hand column and one in the right-hand column. Click Submit. Once submitted, each incorrect answer will be highlighted in red, and correct ones highlighted in green. Please note you will need to correctly match each item for the activity to be considered complete.

Notorious - Known by others

Continuous - Uninterrupted use

Open - Obvious to anyone who looks

Hostile - Without the true owner's consent

In order to establish title by adverse possession, there must be proof of an exclusive, nonpermissive use that is ONCHA—open, notorious, continuous, hostile, and adverse to the true owner's interest—for the statutorily prescribed period. (True)

Title to property may be transferred without the owner's consent by involuntary alienation. (True)

Conveying Title Through a Will

Real estate professionals should understand the terminology and process related to conveying title through a will. Match each term with the appropriate definition. 
Match the objects to the appropriate targets by clicking one item in the left-hand column and one in the right-hand column. Click Submit. Once submitted, each incorrect answer will be highlighted in red, and correct ones highlighted in green. Please note you will need to correctly match each item for the activity to be considered complete.

Intestate - Person's death without a will

Devisee - Person who receives real property by will

Testator - Person who makes a will

Devise - Gift of real property by will

The person who makes a will is called the testator. (True)

An oral will is called a holographic will. (False)

Q : A 15-year-old boy recently inherited many parcels of real estate from his late father and has decided to sell one of them. If the boy enters into a deed conveying his interest in the property to a purchaser, such a conveyance would be

A : voidable.

(Explanation : The answer is voidable. Real estate contracts entered into by minors are generally voidable by the minor until the minor reaches the age of majority—18 in most states—or shortly thereafter.)

Q : A deed contains a guarantee that the grantor will compensate the grantee for any loss resulting from the title's failure in the future. This is an example of which covenant?

A : Warranty forever

(Explanation : The answer is warranty forever. The grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future in the covenant of warranty forever.)

Q : A form authorizing one person to execute documents for another is called a

A : power of attorney

(Explanation : The answer is power of attorney. That document is a power of attorney; the person named in it is an attorney-in-fact. Deeds do not authorize one person to act for another.)

Q : A person who dies testate has

A : prepared a will indicating how the deceased's property will be disposed of.

(Explanation : The answer is prepared a will indicating how the deceased's property will be disposed of. A person who dies testate has prepared a will indicating how the deceased's property will be disposed of.)

Q : A person who has died without a valid will has died

A : intestate

(Explanation : The answer is intestate. A person who dies testate leaves a valid will; one who dies intestate does not. A person who makes a last will and testament is a testator. A devisee is one who receives a gift of real estate (a devise) through a will. A legatee is one who receives a gift of personal property (legacy) through a will.)

Q : A sale to satisfy delinquent tax or mortgage liens is an example of

A : involuntary alienation.

(Explanation : The answer is involuntary alienation. A sale to satisfy delinquent tax or mortgage liens is an example of involuntary alienation.)

Q : A valid will devises a decedent's real estate after payment of all debts, claims, inheritance taxes, and expenses through the

A : court action known as probate.

(Explanation : The answer is court action known as probate. For the title to pass to the devisees, state laws require that on the death of a testor, the will must be filed with the court and probated. Probate is the legal procedure verifying the validity of a will accounting for the decedent's assets.)

Q : An owner of real estate was declared legally incompetent and was committed to a state mental institution. While institutionalized, the owner wrote and executed a will. The owner died while still institutionalized and was survived by a spouse and three children. The real estate will pass

A : according to the state laws of descent.

(Explanation : The answer is according to the state laws of descent. A requirement for a valid will is mental competency of the testator at the time of writing the will. Because of mental incompetence, the owner in question died without a valid will. Consequently, the property will pass to people chosen by state law (statute) to receive property when a decedent has no will (dies intestate).)

Q : Eminent domain and escheat are two examples of

A : involuntary alienation.

(Explanation : The answer is involuntary alienation. The right of eminent domain allows a government entity to compel the sale of a property to that entity for a price set by court process—condemnation. This transfer of title (alienation) is forced and so is involuntary. When a person dies without a will (intestate) and without heirs, the property passes (escheats) to the state. This process was neither planned nor initiated by the owner before death and so is classified as involuntary.)

Q : Every deed must be signed by the

A : grantor

(Explanation : The answer is grantor. Either the grantor, or someone acting under the grantor's authority, must execute (sign) every deed, and the grantor must have legal capacity to do so.)

Q : Generally, where does a probate proceeding involving real property take place?

A : In both the county where the decedent resided and the county in which the property is located

(Explanation : The answer is in both the county where the decedent resided and the county in which the property is located. There will be two probates conducted: one in the county where the decedent resided and another in the county where the real estate is located.)

Q : Land lost through erosion is an example of

A : involuntary alienation.

(Explanation : The answer is involuntary alienation. Land lost through erosion is an example of involuntary alienation.)

Q : P signed a deed transferring ownership of P's house to Q. To provide evidence that P's signature was genuine, P executed a declaration before a notary. This declaration is known as an

A : acknowledgment.

(Explanation : The answer is acknowledgment. P gave this acknowledgment as to the validity and voluntary nature of P's signature to a notary. The notary took P's acknowledgment and attached a seal.)

Q : Party Y receives a deed from party X. The granting clause of the deed states, "I hereby remise, release, alienate, and convey to Y the following real property." What type of deed has Y received?

A : Special warranty

(Explanation : The answer is special warranty. The quoted granting clause does not use the word quitclaim but does use the word convey. Hence, it is not a quitclaim deed. It does not use the words warrant generally, and so it is not a general warranty deed. Neither does it use the phrase bargain and sell. A special warranty deed uses such words as remise, alienate, and convey.)

Q : Real estate that is inherited from a person who died testate is called a

A : devise

(Explanation : The answer is devise. The gift of real property by will is known as a devise, and the person who receives property by will is known as a devisee.)

Q : 

Step 1: A decided to convey a house to B.

Step 2: A signed a deed transferring title to B.

Step 3: A gave the signed deed to B, who accepted it.

Step 4: B took the deed to the county recorder's office and had it recorded.

At which step did title to the house actually transfer or pass to B?

A : Step 3

(Explanation : The answer is Step 3. Title in this case was transferred upon delivery and acceptance of the deed. At that moment, the deed was binding between the parties. The purchaser, when later recording the deed, was then also protected against third parties.)

Q : The basic requirements for a valid conveyance are governed by

A : state law

(Explanation : The answer is state law. Although all the listed items influence it somewhat, state law has the greatest influence on requirements for a valid real property conveyance.)

Q : The grantee receives greatest protection with what type of deed?

A : General warranty

(Explanation : The answer is general warranty. In the general warranty—often just called warranty—deed, the grantor makes more promises and gives the grantee more covenants than in any other deed.)

Q : The person who makes a will is called the

A : testator.

(Explanation : The answer is testator. The person who makes a will is called the testator.)

Q : The primary heirs of the deceased are the surviving spouse and close blood relatives (such as children, parents, brothers, sisters, aunts, uncles, and, in some cases, first and second cousins) under

A : a state's statute of descent and distribution.

(Explanation : The answer is a state's statute of descent and distribution. The primary heirs of the deceased are the surviving spouse and close blood relatives (such as children, parents, brothers, sisters, aunts, uncles, and, in some cases, first and second cousins) identified under a state's statute of descent and distribution.)

Q : The reversion of real estate to the state because of the lack of heirs or other people legally entitled to own the property is called

A : escheat

(Explanation : The answer is escheat. When a person dies intestate and no heirs can be located, title to the real estate passes to the state by the state's power of escheat and is an involuntary alienation.)

Q : Title acquired through adverse possession must be open, notorious, continuous, hostile, and

A : adverse to the true owner's possession.

(Explanation : The answer is adverse to the true owner's possession. Title acquired through adverse possession must be open, notorious, continuous, hostile, and adverse to the true owner's possession.)

Q : Title to real estate may be transferred during a person's lifetime by

A : involuntary alienation.

(Explanation : The answer is involuntary alienation. Transfer of title by devise (will), descent (death intestate), or escheat (for lack of a will and lack of heirs) all occur after death. Involuntary alienation, such as condemnation, foreclosure sale, or tax sale, can occur during a person's lifetime.)

Q : Title to real estate means the right to or ownership of the land and represents the owner's

A : bundle of legal rights and also serves as evidence of ownership.

(Explanation : The answer is bundle of legal rights and also serves as evidence of ownership. Title to real estate means the right to or ownership of the land and represents the owner's bundle of legal rights and also serves as evidence of ownership.)

Q : Under the covenant of quiet enjoyment, grantors

A : ensure that the title will be good against the title claims of third parties.

(Explanation : The answer is ensure that the title will be good against the title claims of third parties. Quiet enjoymenit means freedom from claims of third parties—persons other than grantor and grantee.)