Real Estate Fundamentals - Chapter 12: Deeds

1. A deed is a written document that conveys title to real property.

True

False

A deed is a legally binding written document that transfers ownership or title of real property from one party to another. It serves as proof of ownership and is typically recorded with the appropriate government office. By stating that a deed conveys title to real property, the answer confirms the accuracy of the statement.

Explanation

A deed is a legally binding written document that transfers ownership or title of real property from one party to another. It serves as proof of ownership and is typically recorded with the appropriate government office. By stating that a deed conveys title to real property, the answer confirms the accuracy of the statement.

2. A warranty deed is a deed that provides a warranty or guarantee of good title from the grantor to the grantee.

True

False

A warranty deed is a type of deed that guarantees that the grantor (seller) has the legal right to transfer the property to the grantee (buyer) and that there are no other claims or liens on the property. This means that if any issues arise with the title in the future, the grantee can seek compensation from the grantor. Therefore, the statement that a warranty deed provides a warranty or guarantee of good title from the grantor to the grantee is true.

Explanation

A warranty deed is a type of deed that guarantees that the grantor (seller) has the legal right to transfer the property to the grantee (buyer) and that there are no other claims or liens on the property. This means that if any issues arise with the title in the future, the grantee can seek compensation from the grantor. Therefore, the statement that a warranty deed provides a warranty or guarantee of good title from the grantor to the grantee is true.

3. "Words of conveyance" are the key words that are used to establish that the title is being conveyed and the kind of ownership interest that is being conveyed.

True

False

Also known as the granting clause.

Explanation

Also known as the granting clause.

4. A quitclaim deed carries a guarantee of good title so the quitclaim deed is considered to be one of the strongest deeds available.

True

False

A quitclaim deed carries no warranty of good title so the quitclaim deed is considered to be one of the weakest types of deed for any party to receive.

Explanation

A quitclaim deed carries no warranty of good title so the quitclaim deed is considered to be one of the weakest types of deed for any party to receive.

5. The covenant of seisin is a warranty that the grantor is the owner and has right to convey the title.

True

False

The covenant of seisin is a type of warranty that assures the grantee that the grantor is the rightful owner of the property and has the authority to transfer the title. This covenant guarantees that the grantee will receive full possession and ownership of the property without any interference from third parties. Therefore, the statement is true as the covenant of seisin provides protection to the grantee by ensuring the grantor's ownership rights.

Explanation

The covenant of seisin is a type of warranty that assures the grantee that the grantor is the rightful owner of the property and has the authority to transfer the title. This covenant guarantees that the grantee will receive full possession and ownership of the property without any interference from third parties. Therefore, the statement is true as the covenant of seisin provides protection to the grantee by ensuring the grantor's ownership rights.

6. A quitclaim deed is one that is used to have one party give up or transfer whatever ownership interst in real property exists.

True

False

A quitclaim deed is a legal document that allows one party to relinquish or transfer their ownership interest in real property. This means that the person giving up their ownership rights is essentially "quitting" or releasing any claims they may have on the property. This type of deed is commonly used in situations where there may be uncertainty or disputes about the ownership of the property. Therefore, the statement that a quitclaim deed is used to transfer ownership interest in real property is true.

Explanation

A quitclaim deed is a legal document that allows one party to relinquish or transfer their ownership interest in real property. This means that the person giving up their ownership rights is essentially "quitting" or releasing any claims they may have on the property. This type of deed is commonly used in situations where there may be uncertainty or disputes about the ownership of the property. Therefore, the statement that a quitclaim deed is used to transfer ownership interest in real property is true.

7. These documents are usually NOT recorded: mortgages, lis pendens, mortgage satisfactions, and mechanic's liens.

True

False

These documents ARE recorded.

Explanation

These documents ARE recorded.

8. The parties involved in the coveyance of title to real property must be specifically identified in the deed and are officially called the grantor (receiver of the title) and grantee (the giver of the title).

True

False

The grantor is the giver of the title and the grantee is the reciever of the title.

Explanation

The grantor is the giver of the title and the grantee is the reciever of the title.

9. A person who has possession of the deed is always the rightful owner of the property.

True

False

While a deed constitutes a form of evidence, a deed is not complete evidence of ownership. In the absence of fraud with the two parties having a deed to the same property, the party having recorded the deed first would be recognized as the rightful owner.

Explanation

While a deed constitutes a form of evidence, a deed is not complete evidence of ownership. In the absence of fraud with the two parties having a deed to the same property, the party having recorded the deed first would be recognized as the rightful owner.

10. The covenant of warranty forever guarantees that the grantor will pay the grantee damages if the title is not good and the grantee suffers a monetary loss.

True

False

The covenant of warranty forever is a legal agreement that ensures the grantor will compensate the grantee if the title is found to be defective, resulting in financial loss for the grantee. This means that if the grantee discovers any issues with the title that affect their ownership rights, the grantor is obligated to cover any damages incurred by the grantee. Therefore, the statement is true.

Explanation

The covenant of warranty forever is a legal agreement that ensures the grantor will compensate the grantee if the title is found to be defective, resulting in financial loss for the grantee. This means that if the grantee discovers any issues with the title that affect their ownership rights, the grantor is obligated to cover any damages incurred by the grantee. Therefore, the statement is true.

11. At settlement, the deed that has been prepared in advance by the real estate agent representing the seller, is given to the buyer to sign.

True

False

The deed has been prepared by the closing agent, typically a TITLE INSURANCE COMPANY REPRESENTATIIVE and is given to the GRANTOR (seller) to sign.

Explanation

The deed has been prepared by the closing agent, typically a TITLE INSURANCE COMPANY REPRESENTATIIVE and is given to the GRANTOR (seller) to sign.

12. A general warranty deed provides a guarantee of good title by the grantor (typically a seller) ONLY. In other words, the guarantee is limited to a guarantee by the present owner only and not for any previous owners.

True

False

A general warranty deed provides a guarantee of good title NOT ONLY by the grantor, but back through the chain of title through all the previous owners of the property.

Explanation

A general warranty deed provides a guarantee of good title NOT ONLY by the grantor, but back through the chain of title through all the previous owners of the property.

13. Recording a document means entering it into the public records. This is accomplished in PA by sending the document to the state capital in Harrisburg.

True

False

Recording a document is accomplished at the COUNTY courthouse.

Explanation

Recording a document is accomplished at the COUNTY courthouse.

14. The buyer does not receive the deed to the property he/she just paid until the property is paid in full. This could conceivably be 15, 20, or even 30 years.

True

False

The buyer will usually get the deed in the mail several weeks after settlement and the recording have taken place.

Explanation

The buyer will usually get the deed in the mail several weeks after settlement and the recording have taken place.

15. A bargain and sale deed is the type of deed issued by the sheriff of a county as a result of a sale of real property from a mortgage foreclosure sale, sheriff's sale or tax sale of a property due to unpaid debts.

True

False

A bargain and sale deed is a deed that is similar to a quitclaim deed in that it has no warranty of good title for the grantee.

A sheriff's deed is the type of deed issued by the sheriff or county as a result of a sale of real property from a mortgage foreclosure sale, sheriff's sale or tax sale of a property due to unpaid debts.

Explanation

A bargain and sale deed is a deed that is similar to a quitclaim deed in that it has no warranty of good title for the grantee.

A sheriff's deed is the type of deed issued by the sheriff or county as a result of a sale of real property from a mortgage foreclosure sale, sheriff's sale or tax sale of a property due to unpaid debts.

16. There are several necessary components for a valid deed: A. The deed must be in writing B. A deed must have a grantor and a grantee C. The deed must indicate that something of value is exchanged for the title of real property. D. Words of conveyance are typically found in a section of the deed (granting clause) E. A deed must have a specific legal description of propery to be conveyed. In the US, all descriptions must be made using the rectangular survey system description. F. There must be signatures by both the grantor and the grantee. G. Delivery and acceptance of the deed must occur to convey the title.

True

False

All parts of this question are TRUE EXCEPT E and F.

E A deed must have a specific legal description of the property to be conveyed EITHER using a metes and bounds OR recorded subdivision plat OR rectangular survey system description.

F. Also, the grantee is NOT required to sign the deed.

Explanation

All parts of this question are TRUE EXCEPT E and F.

E A deed must have a specific legal description of the property to be conveyed EITHER using a metes and bounds OR recorded subdivision plat OR rectangular survey system description.

F. Also, the grantee is NOT required to sign the deed.

17. A deed will commonly contain a section of exceptions and limitations to the new owner's bundle of rights. These exceptions and limitations are usually referred to as the habendum clause.

True

False

This section of restrictions would identify such encumbrances affecting an owner's right as easements and restrictive covenants imposed by a developer.

A habendum clause proivdes an "explanation" of what is provided in the granting clause when it requires "further clarification". It follows right after the granting clause and must be consistent with the granting clause. Habendum means "to have and hold".

Explanation

This section of restrictions would identify such encumbrances affecting an owner's right as easements and restrictive covenants imposed by a developer.

A habendum clause proivdes an "explanation" of what is provided in the granting clause when it requires "further clarification". It follows right after the granting clause and must be consistent with the granting clause. Habendum means "to have and hold".

18. A guardian's deed is the deed used by the person designated in a will to administer the estate of the deceased and carry out the terms of the will.

True

False

A guardian's deed is the deed by which the legal guardian of a minor conveys title of real property according to the authority of the court.

The deed used by the person designated in a will to adminster the estate of the deceased and carry out the terms of the will is the definition of an executor's (male administrator) deed or executrix (female adminstrator) deed.

Explanation

A guardian's deed is the deed by which the legal guardian of a minor conveys title of real property according to the authority of the court.

The deed used by the person designated in a will to adminster the estate of the deceased and carry out the terms of the will is the definition of an executor's (male administrator) deed or executrix (female adminstrator) deed.