Real Estate Fundamentals: Chapter 3 Exam
Questions and Answers
1. Real Estate Transaction Correct Answer: Transfer of title from seller to buyer (voluntary or
involuntarily)
2. Alienation Correct Answer: general term that refers to all of the ditterent ways by which title to real
property can be transferred
from one person to another
-a person who owns real property is said to have title to it
-transfer of ownership=form of alienation (whether it be by deed, will, foreclosure, etc.)
-opposite of acquisition of property
3. Voluntary Alienation Correct Answer: Patents, deeds
4. Patents Correct Answer: Title to land passes from government to private party by this document
5. Deeds Correct Answer: Document a private landowner uses to transfer real property to someone
else
-most common method once land has passed into private ownership
-conveys real property, not personal property
-should not be referred to as "the title" to a property; while the document is used to transfer ownership of
a motor vehicle, title is an abstract concept not a document
6. Grantor Correct Answer: Property owner in a deed
7. Grantee Correct Answer: person owner is transferring property to
8. Conveyance Correct Answer: transfer of real property from grantor to grantee by means of deed
9. Bill of Sale Correct Answer: document used to transfer ownership of non-automotive personal
property from seller to buyer
10. Warranty Deed Correct Answer: Grantor gives grantee guarantees or warranties about
status of title of the property (AKA 5
covenants)
-guarantees against title problems
-provides best protection to grantee than any other type of deed and greatest liability for grantor
-most common type of deed
,Real Estate Fundamentals: Chapter 3 Exam
Questions and Answers
-AKA general warranty deed
-covenants automatically apply whenever warranty deed is used to convey property > do not need to be
set forth in deed itself
11. Five Covenants (of warranty deed) Correct Answer: 1) Seisin Correct Answer:
grantor promises that they actually own the interest
that the deed is conveying to grantee
2) Rights to convey Correct Answer: grantor promises they have the right to convey interest in question to
grantee
,Real Estate Fundamentals: Chapter 3 Exam
Questions and Answers
3) Against encumbrances Correct Answer: grantor promises that there are no easements, liens, or other
encumbrances against the title that have not bee disclosed to grantee; ettectively, the grantor promises
that the grantee will receive marketable title
4) Quiet enjoyment Correct Answer: promise that the grantee's possession of the property will not be
disturbed by the lawful claims of any third parties
5) Warranty Correct Answer: grantor promises to defend the grantee's title against any claims by third
parties that existed at time the conveyance was made
12. Special Warranty Deed Correct Answer: same covenants as warranty deed but with
limited scope; covenants only cover
while grantor owned the property
-e.g.used when grantor is fiduciary (executor of an estate) who is holding the land only temporarily
-if deed states it's conveying property, but grantor doesn't actually own property, the deed can't transfer
title to grantee
13. After-Acquired Title Correct Answer: An interest in the property that grantor acquires after
executing deed; both warranty and special warranty convey this
14. Quitclaim Deed Correct Answer: Conveys only interest in property that grantor has at time
it was executed
-If grantor has no interest in property at that point the quitclaim deed conveys nothing to grantee
-Does not convey after-acquired title like warranty deed
-Carries no warranties or covenants
-common reason for quitclaim deed=clear up minor title defects AKA clouds in title
also used involving co-ownership when one co-owner is conveying their interest in the property to the
other co- owner (e.g. divorce settlement > one spouse may quitclaim their interest in the family home to
the other ex-spouse)
-quitclaim is NOT appropriate for standard real estate transaction; buyer should insist on warranty deed
-if seller tries to use quitclaim that should be a red flag for the buyer because there may be some problem
with the title that seller hasn't disclosed
15. Clouds in Title Correct Answer: Problems appearing on public record that cast doubt on
Questions and Answers
1. Real Estate Transaction Correct Answer: Transfer of title from seller to buyer (voluntary or
involuntarily)
2. Alienation Correct Answer: general term that refers to all of the ditterent ways by which title to real
property can be transferred
from one person to another
-a person who owns real property is said to have title to it
-transfer of ownership=form of alienation (whether it be by deed, will, foreclosure, etc.)
-opposite of acquisition of property
3. Voluntary Alienation Correct Answer: Patents, deeds
4. Patents Correct Answer: Title to land passes from government to private party by this document
5. Deeds Correct Answer: Document a private landowner uses to transfer real property to someone
else
-most common method once land has passed into private ownership
-conveys real property, not personal property
-should not be referred to as "the title" to a property; while the document is used to transfer ownership of
a motor vehicle, title is an abstract concept not a document
6. Grantor Correct Answer: Property owner in a deed
7. Grantee Correct Answer: person owner is transferring property to
8. Conveyance Correct Answer: transfer of real property from grantor to grantee by means of deed
9. Bill of Sale Correct Answer: document used to transfer ownership of non-automotive personal
property from seller to buyer
10. Warranty Deed Correct Answer: Grantor gives grantee guarantees or warranties about
status of title of the property (AKA 5
covenants)
-guarantees against title problems
-provides best protection to grantee than any other type of deed and greatest liability for grantor
-most common type of deed
,Real Estate Fundamentals: Chapter 3 Exam
Questions and Answers
-AKA general warranty deed
-covenants automatically apply whenever warranty deed is used to convey property > do not need to be
set forth in deed itself
11. Five Covenants (of warranty deed) Correct Answer: 1) Seisin Correct Answer:
grantor promises that they actually own the interest
that the deed is conveying to grantee
2) Rights to convey Correct Answer: grantor promises they have the right to convey interest in question to
grantee
,Real Estate Fundamentals: Chapter 3 Exam
Questions and Answers
3) Against encumbrances Correct Answer: grantor promises that there are no easements, liens, or other
encumbrances against the title that have not bee disclosed to grantee; ettectively, the grantor promises
that the grantee will receive marketable title
4) Quiet enjoyment Correct Answer: promise that the grantee's possession of the property will not be
disturbed by the lawful claims of any third parties
5) Warranty Correct Answer: grantor promises to defend the grantee's title against any claims by third
parties that existed at time the conveyance was made
12. Special Warranty Deed Correct Answer: same covenants as warranty deed but with
limited scope; covenants only cover
while grantor owned the property
-e.g.used when grantor is fiduciary (executor of an estate) who is holding the land only temporarily
-if deed states it's conveying property, but grantor doesn't actually own property, the deed can't transfer
title to grantee
13. After-Acquired Title Correct Answer: An interest in the property that grantor acquires after
executing deed; both warranty and special warranty convey this
14. Quitclaim Deed Correct Answer: Conveys only interest in property that grantor has at time
it was executed
-If grantor has no interest in property at that point the quitclaim deed conveys nothing to grantee
-Does not convey after-acquired title like warranty deed
-Carries no warranties or covenants
-common reason for quitclaim deed=clear up minor title defects AKA clouds in title
also used involving co-ownership when one co-owner is conveying their interest in the property to the
other co- owner (e.g. divorce settlement > one spouse may quitclaim their interest in the family home to
the other ex-spouse)
-quitclaim is NOT appropriate for standard real estate transaction; buyer should insist on warranty deed
-if seller tries to use quitclaim that should be a red flag for the buyer because there may be some problem
with the title that seller hasn't disclosed
15. Clouds in Title Correct Answer: Problems appearing on public record that cast doubt on
