What Do You Know About Property Deeds?

2.

A deed transfers ownership of a property from a father to a son. What type of transaction is this?

Trustee's deed
Arms-length transaction
Deed of trust
Non arms-length transaction

Correct Answer

A. Non arms-length transaction

Explanation

This transaction is considered a non arms-length transaction because it involves the transfer of ownership of a property between family members, specifically from a father to a son. In an arms-length transaction, the parties involved are unrelated and have no personal or familial relationship.

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3.

The grantor and the grantee are always required to sign a deed.

True
False

Correct Answer

A. False

Explanation

A deed is a legal document that transfers ownership of property from one party (the grantor) to another party (the grantee). While it is common for both the grantor and the grantee to sign a deed, it is not always required. The requirement for both parties to sign a deed can vary depending on the jurisdiction and the specific circumstances of the transfer. In some cases, only the grantor's signature may be sufficient to make the deed legally valid. Therefore, the statement that the grantor and the grantee are always required to sign a deed is false.

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4.

What are the two parties to a deed? Check all that apply.

Grantor
Trust
Title
Grantee

Correct Answer(s)

A. Grantor
A. Grantee

Explanation

The two parties to a deed are the Grantor and the Grantee. The Grantor is the person or entity who is transferring the property rights, while the Grantee is the person or entity who is receiving the property rights. The Grantor is essentially the seller or transferor, while the Grantee is the buyer or transferee. The other options, Trust and Title, are not parties to a deed but may be involved in the transfer of property rights in certain circumstances.

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5.

The grantor is the seller in a deed.

True
False

Correct Answer

A. True

Explanation

In a deed, the grantor is the person who is selling or transferring the property to another party. They are the legal owner of the property and have the authority to transfer the ownership rights to the grantee. The grantor is responsible for executing the deed and ensuring that it is properly recorded with the appropriate authorities. Therefore, the statement that the grantor is the seller in a deed is true.

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6.

For a transaction to be considered arms-length, the buyer and seller must live in different states.

True
False

Correct Answer

A. False

Explanation

An arms-length transaction refers to a transaction where the buyer and seller are unrelated and act independently, without any influence or relationship that could affect the transaction. The location or residency of the buyer and seller does not determine whether a transaction is arms-length or not. Therefore, the statement that for a transaction to be considered arms-length, the buyer and seller must live in different states is false.

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7.

A deed is a legal_________.

Weapon
Paper
Instrument
Trust

Correct Answer

A. Instrument

Explanation

A deed is a legal instrument that is used to transfer ownership or rights to a property or asset. It is a written document that provides evidence of the transaction and is legally binding. Deeds are commonly used in real estate transactions to establish ownership and transfer property rights from one party to another. They serve as a proof of ownership and provide legal protection to both the buyer and the seller. Therefore, the correct answer is instrument.

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8.

A detailed list of the ownership history of a piece of real property is called what?

Chain of Title
Chain of Ownership
Owner History Report
T.P.S. Report

Correct Answer

A. Chain of Title

Explanation

A detailed list of the ownership history of a piece of real property is called the chain of title. This document provides a chronological record of all transfers, sales, and encumbrances that have occurred over time, establishing the current owner's legal rights and interests in the property. It is essential for ensuring a clear and marketable title during real estate transactions. The chain of title helps identify any potential issues or disputes that may arise, such as unresolved liens or conflicting claims, allowing for proper resolution before completing the sale or transfer of the property.

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9.

What is your favorite ocean or sea?

Correct Answer
N/A

What Do You Know About Property Deeds?

What is the main function of a deed?

Quiz Preview

A deed transfers ownership of a property from a father to a son. What type of transaction is this?

The grantor and the grantee are always required to sign a deed.

What are the two parties to a deed? Check all that apply.

The grantor is the seller in a deed.

For a transaction to be considered arms-length, the buyer and seller must live in different states.

A deed is a legal_________.

A detailed list of the ownership history of a piece of real property is called what?

What is your favorite ocean or sea?