Real Estate Ownership and Title Practice Test

25 practice questions

Choose an answer, then check it under Show answer.

1. Question 1 of 25Medium

   Four siblings hold a lake cabin as joint tenants with right of survivorship. Without the others joining, June deeds her interest to her friend Park during her lifetime. June remains alive. How are the ownership interests arranged after the deed?

   1. AA. Park becomes a tenant in common; the other siblings remain joint tenants
   2. BB. Park and the three siblings now hold equal shares as joint tenants with one another
   3. CC. June's deed triggers survivorship immediately and gives each surviving sibling a larger share
   4. DD. The deed is void because every joint tenant had to join in and sign the conveyance
   Show answer to question 1

   Answer: A. Park becomes a tenant in common; the other siblings remain joint tenants

   A joint tenant may convey his or her own interest during life, and that conveyance severs the joint tenancy as to the conveyed share. Park therefore becomes a tenant in common with the remaining owners, while the three siblings retain joint tenancy and survivorship rights among themselves.

   Why the other options are wrong

   • BThe conveyance does not create a new joint tenancy among Park and all of the siblings; Park takes as a tenant in common.
   • CSurvivorship operates when a joint tenant dies, not when that tenant conveys an interest during life.
   • DOne joint tenant may convey his or her own interest without obtaining the signatures of the other joint tenants.

2. Question 2 of 25Medium

   A married couple in a community property state owns a residence as community property. One spouse wants to sell the residence to an investor. What is required to execute a valid conveyance of the property?

   1. AA. The selling spouse may convey the entire property if that spouse provides sole financial support.
   2. BB. The non-selling spouse must sign a quitclaim deed prior to the listing of the property.
   3. CC. The selling spouse may transfer their one-half interest without the other spouse's participation.
   4. DD. Both spouses must sign the deed to transfer valid title to the community real estate.
   Show answer to question 2

   Answer: D. Both spouses must sign the deed to transfer valid title to the community real estate.

   Under general community property rules, community real estate cannot be sold, encumbered, or conveyed without the consent and signatures of both spouses. One spouse cannot unilaterally convey the whole property or sever their undivided one-half interest in community real estate without joinder by the other spouse.

3. Question 3 of 25Medium

   Northstar LLC holds title to an office building. Member Theo dies, and his membership interest passes under his estate plan. The operating agreement keeps the LLC in existence. Who owns the building after Theo's death?

   1. AA. Theo's heir receives an undivided fractional interest in the office building
   2. BB. Theo's estate receives the office building directly through his membership interest
   3. CC. Northstar LLC continues to hold title to the office building.
   4. DD. The remaining members automatically become sole owners of the office building
   Show answer to question 3

   Answer: C. Northstar LLC continues to hold title to the office building.

   An LLC is a separate legal entity that may own real property in its own name. Theo's death transfers his membership interest, not a direct fractional interest in the LLC's real estate, and the continuing LLC retains title.

   Why the other options are wrong

   • ATheo's heir may receive an interest in the membership, but the LLC still owns its real estate.
   • BA membership interest is distinct from direct title to property owned by the LLC.
   • DEntity property does not automatically vest directly in the remaining members upon a member's death.

4. Question 4 of 25Hard

   A deed contains a granting clause that conveys property to a grantee 'and the grantee's heirs and assigns forever,' but the habendum clause states 'to have and to hold for the duration of the grantee's natural life.' Under traditional rules of deed construction, how is this conflict resolved?

   1. AA. The granting clause takes precedence, conveying a fee simple estate
   2. BB. The habendum clause takes precedence, conveying only a life estate
   3. CC. The deed is declared void for ambiguity and title reverts to the grantor
   4. DD. The conveyance is treated as an estate for years expiring upon probate
   Show answer to question 4

   Answer: A. The granting clause takes precedence, conveying a fee simple estate

   Under the traditional rule specified in the question, courts first attempt to reconcile the deed’s provisions. If the fee-simple grant in the granting clause irreconcilably conflicts with the life-estate limitation in the habendum clause, the granting clause prevails, conveying a fee simple estate. Although the habendum may clarify or limit the estate granted, it cannot defeat an express, irreconcilable grant under that traditional rule. This is not a universal rule of current law: modern construction depends on applicable law and may emphasize the deed as a whole and the grantor’s intent.

   Why the other options are wrong

   • BThis reverses the traditional priority rule: a habendum clause cannot reduce an estate clearly conveyed in the granting clause when the two clauses irreconcilably conflict.
   • CThis mistakes conflicting clauses for a fatal defect: the traditional priority rule resolves the conflict in favor of the granting clause rather than voiding the deed.
   • DThis confuses a life estate with an estate for years, which has a fixed duration. Probate does not set the estate's duration, and the granting clause controls this conflict.

5. Question 5 of 25Medium

   A seller has already paid the annual property taxes of $3,600 in full on January 1. The property closes on July 15, and the parties agree to use a 360-day year (30-day months) for proration. The seller is responsible for the day of closing. How much should the buyer reimburse the seller for the buyer's share of the taxes?

   1. AA. $1,650
   2. BB. $1,800
   3. CC. $1,950
   4. DD. $1,500
   Show answer to question 5

   Answer: A. $1,650

   Using a 360-day year, the daily tax is $10 ($3,600 ÷ 360). The seller has used the property for 195 days (Jan 1 to Jul 15 inclusive), so the seller's share is $1,950. The remaining 165 days belong to the buyer, who owes the seller $1,650 (165 × $10). The correct reimbursement is the buyer's share of the prepaid taxes.

   Why the other options are wrong

   • B$1,800 would be the result if the year were split exactly in half (180 days each), but the closing date gives the seller 195 days.
   • C$1,950 is the seller's share of taxes, not the buyer's reimbursement.
   • D$1,500 represents only 150 days of taxes. Counting August through December but omitting July 16 through July 30 leaves out 15 days of the buyer's share.

6. Question 6 of 25Easy

   Elena, Marcus, and Sofia take title as tenants in common with stated shares of 50%, 30%, and 20%. Elena dies leaving a valid will that devises her interest to her brother. What happens to Elena's share?

   1. AA. It immediately escheats to the government.
   2. BB. It is divided equally between Marcus and Sofia.
   3. CC. It returns automatically to the prior grantor.
   4. DD. It passes to Elena's brother under her will.
   Show answer to question 6

   Answer: D. It passes to Elena's brother under her will.

   A tenant in common may transfer an undivided fractional interest during life or at death. There is no right of survivorship, so Elena's 50% share passes under her will rather than to the other co-owners.

   Why the other options are wrong

   • AEscheat is not appropriate because Elena's will identifies a recipient for her interest.
   • BEqual division by survivorship is associated with certain joint tenancies, not a tenancy in common.
   • CA co-owner's fractional interest does not automatically return to the prior grantor at death.

7. Question 7 of 25Hard

   A seller deposits an executed deed with an independent escrow agent with irrevocable instructions to deliver it to the buyer once the purchase price is paid. Before closing, the seller unexpectedly dies. The buyer then tenders full payment to escrow according to the contract terms. Which doctrine allows this transfer of title to be legally effective?

   1. AA. Doctrine of relation-back
   2. BB. Doctrine of equitable conversion
   3. CC. Doctrine of part performance
   4. DD. Doctrine of estoppel by deed
   Show answer to question 7

   Answer: A. Doctrine of relation-back

   Under the traditional doctrine of relation-back, when a grantor irrevocably deposits a deed in escrow and the buyer subsequently satisfies all escrow conditions, delivery can relate back to the original deposit, preventing the seller's intervening death from defeating the conveyance. Equitable conversion generally treats the buyer under a specifically enforceable real estate purchase contract as the equitable owner; it does not itself accomplish delivery of the deed.

   Why the other options are wrong

   • BThis confuses the buyer's equitable ownership under a sales contract with the legal effectiveness of delivering an escrowed deed after the seller's death.
   • CThis confuses an exception to the statute of frauds for certain oral land contracts with the effect of the seller's death on delivery of an escrowed deed.
   • DThis confuses preventing a grantor from denying representations in a deed, often involving after-acquired title, with allowing effective delivery of an escrowed deed after the grantor's death.

8. Question 8 of 25Medium

   On the same day, Seller sells a property to Buyer A and later to Buyer B. Both buyers pay valuable consideration. Buyer B had actual knowledge of Buyer A's purchase but properly records the deed first. Under a pure race recording statute, who has priority?

   1. AA. The seller retains title until a court determines the outcome
   2. BB. Buyer A, because Buyer B's actual knowledge defeats recording
   3. CC. Neither buyer can have priority until a court issues a judgment
   4. DD. Buyer B, because recording first gives priority regardless of notice
   Show answer to question 8

   Answer: D. Buyer B, because recording first gives priority regardless of notice

   Under a pure race recording statute, priority between competing purchasers from the same seller goes to the purchaser who first properly records, regardless of notice of an earlier unrecorded conveyance. Buyer B recorded first and therefore has priority despite actual knowledge of Buyer A's purchase.

   Why the other options are wrong

   • AThe seller does not retain ownership merely because competing deeds create a dispute. The recording statute determines priority between the buyers.
   • BUnder a pure race recording statute, actual knowledge of an earlier unrecorded conveyance does not defeat the first recorder's priority.
   • CCompeting deeds can create a title cloud or dispute, but priority does not depend on a court first issuing a judgment. The stated recording rule gives Buyer B priority.

9. Question 9 of 25Easy

   Mara fenced and cultivated a clearly marked strip of neighboring land as part of her yard. She used it openly and visibly, exclusively, continuously, and without permission for the full period required by applicable law. The owner saw the fence but never objected. What result is best supported?

   1. AA. Mara receives only an easement because the strip was vacant.
   2. BB. Mara needs the owner's consent after the period ends.
   3. CC. Mara automatically owns the strip because the owner saw the fence.
   4. DD. Mara may seek title to the strip through adverse possession.
   Show answer to question 9

   Answer: D. Mara may seek title to the strip through adverse possession.

   Open, notorious, exclusive, continuous, and adverse use for the required statutory period can support a claim of title by adverse possession. The owner's awareness does not replace those elements, and permission would generally defeat the adverse character of the use.

   Why the other options are wrong

   • AThe land's vacant condition does not limit a qualifying possessor to an easement rather than a claim of title.
   • BConsent after the period is not required, and permission would generally prevent the use from being adverse.
   • CMere observation by the owner does not establish every required element of adverse possession.

10. Question 10 of 25Medium

    Under general community property principles, a married couple purchases a house with community funds earned by one spouse during the marriage. The deed names only that spouse. Assuming no valid agreement or other legally effective action changes the property's character, how is the house generally classified if the couple divorces?

    1. AA. It is community property only if both spouses signed the deed
    2. BB. It is community property because it was purchased with community funds
    3. CC. It is the separate property of the named spouse because the deed is in that name
    4. DD. It is separate property because the other spouse did not contribute financially
    Show answer to question 10

    Answer: B. It is community property because it was purchased with community funds

    Under general community property principles and the stated assumptions, a house purchased during marriage with community funds is generally community property. Naming only one spouse on the deed does not, by itself, necessarily make the house that spouse's separate property. Classification as community property is distinct from how a court divides property at divorce, which depends on state law.

    Why the other options are wrong

    • AGrantees generally do not need to sign a deed to acquire property. A purchase with community funds can be community property even if only one spouse is named on the deed.
    • CUnder the stated assumptions, naming only one spouse on the deed does not, by itself, make a house purchased with community funds that spouse's separate property.
    • DA spouse need not contribute earnings for property purchased with community funds to be community property. The earning spouse's income is community funds under the stated facts.

11. Question 11 of 25Hard

    A property owner conveys real estate by deed "to Dana for life, then to Taylor if Taylor graduates from college before Dana's death; otherwise to Sam." At the time of the conveyance, Taylor is an undergraduate student. How is Taylor's interest classified?

    1. AA. A vested remainder
    2. BB. A reversionary interest
    3. CC. A contingent remainder
    4. DD. A fee simple determinable
    Show answer to question 11

    Answer: C. A contingent remainder

    A remainder is contingent if it is subject to an unmet condition precedent other than the natural termination of the preceding estate. Because Taylor has not yet satisfied the requirement to graduate from college before Dana dies, Taylor holds a contingent remainder. A vested remainder is held by an ascertained person and has no unmet condition precedent. Merely waiting for the preceding life estate to end delays possession, not vesting in interest.

    Why the other options are wrong

    • AThis mistakes an identified beneficiary for a vested remainder holder. Taylor must still satisfy the condition of graduating before Dana dies.
    • BThis confuses a future interest conveyed to Taylor with an interest retained by the grantor. A reversion remains with the grantor.
    • DThis confuses a condition Taylor must satisfy to receive the estate with a limitation that automatically ends a fee simple estate upon a specified event.

12. Question 12 of 25Medium

    In a cooperative housing corporation, a shareholder-tenant fails to pay monthly maintenance fees. What is the most likely consequence?

    1. AA. The corporation can place an assessment lien on the shareholder's separately owned real estate unit.
    2. BB. The corporation can foreclose on the unit as real estate owned by the shareholder.
    3. CC. The corporation can fine the tenant but cannot affect occupancy
    4. DD. The corporation may terminate the proprietary lease and evict the tenant through required legal procedures.
    Show answer to question 12

    Answer: D. The corporation may terminate the proprietary lease and evict the tenant through required legal procedures.

    In a cooperative, the resident owns shares in the corporation and occupies the dwelling under a proprietary lease. Nonpayment of maintenance charges may permit termination of the lease and eviction, subject to the governing documents, applicable law, and required legal procedures.

    Why the other options are wrong

    • AThe shareholder does not own a separate real estate unit against which the corporation would impose an assessment lien. Any lien against the shareholder's cooperative interest is distinct from a lien on the corporation's real estate.
    • BThe corporation owns the real estate, not the shareholder. Security interests in cooperative shares and proprietary leases may be foreclosed or otherwise enforced, but that is distinct from foreclosure on a separately owned real estate unit.
    • CNonpayment may permit termination of the proprietary lease and eviction, subject to governing documents, applicable law, and required legal procedures.

13. Question 13 of 25Medium

    An owner conveys title to a parcel of land to a charity 'so long as the property is used as a wildlife sanctuary.' If the charity subsequently converts the land into a commercial shopping center, title automatically reverts to the original grantor. What type of freehold estate was conveyed?

    1. AA. Fee simple subject to a condition subsequent
    2. BB. Ordinary life estate
    3. CC. Fee simple determinable
    4. DD. Estate for years
    Show answer to question 13

    Answer: C. Fee simple determinable

    A fee simple determinable is a defeasible freehold estate qualified by special limitation language (such as 'so long as' or 'while'); if the limitation is broken, title automatically reverts to the grantor without requiring judicial action. In contrast, a fee simple subject to a condition subsequent does not terminate automatically; the grantor must take affirmative legal action to exercise the right of re-entry.

    Why the other options are wrong

    • AThis confuses automatic termination with a condition subsequent, which requires the grantor to exercise a right of re-entry rather than regain title automatically.
    • BThis mistakes a use restriction for a lifetime limit. An ordinary life estate lasts for the life tenant's lifetime, not until the property stops serving a specified use.
    • DThis confuses a defeasible freehold with a leasehold. An estate for years lasts for a fixed, definite period, which the conveyance does not specify.

14. Question 14 of 25Easy

    Nora deeds a house to Lena for Lena's life, then to Omar and his heirs, with no additional condition. What interests were created?

    1. AA. Lena has a life estate, and Omar has a remainder.
    2. BB. Lena and Omar have equal present possessory interests.
    3. CC. Omar has a life estate, and Lena has a reversion.
    4. DD. Lena has a fee simple, and Omar has an easement.
    Show answer to question 14

    Answer: A. Lena has a life estate, and Omar has a remainder.

    Lena's estate is measured by her life, giving her the present right to possess the property during that life. Omar holds a remainder that becomes possessory when Lena's life estate ends.

    Why the other options are wrong

    • BOmar's interest is future rather than an equal present right to possession.
    • CThe interests are reversed, and a reversion is retained by the grantor rather than created in Lena.
    • DLena's interest ends at her death, and the deed creates no right for Omar to use another person's land as an easement.

15. Question 15 of 25Medium

    When a buyer finances the purchase of a cooperative apartment, what security instrument is typically used by the lender to secure the loan?

    1. AA. A deed of trust recorded against the entire parcel of real estate
    2. BB. A traditional mortgage creating a lien on the unit's fee simple title
    3. CC. A security agreement pledging the stock shares and proprietary lease
    4. DD. A general warranty deed transferring equitable title to the lender
    Show answer to question 15

    Answer: C. A security agreement pledging the stock shares and proprietary lease

    A cooperative buyer generally acquires corporate shares and a proprietary lease rather than fee simple title to an individual unit. The lender typically takes a security interest in those shares and the buyer's interest in the proprietary lease through a security agreement. A UCC financing statement may provide public notice, but it does not itself create the security interest. Perfection requirements and methods vary. A traditional mortgage or deed of trust encumbers real property, which the individual cooperative shareholder does not own.

    Why the other options are wrong

    • AThis confuses the corporation's real estate with the buyer's collateral. The corporation owns the parcel, while the buyer pledges shares and a proprietary lease.
    • BThis assumes a cooperative buyer receives fee simple title to an individual unit. The buyer instead acquires corporate shares and a proprietary lease, not real estate to mortgage.
    • DThis mistakes a deed of conveyance for a loan security instrument. A general warranty deed conveys legal title to real estate, not equitable title, and the cooperative buyer has no unit title to convey.

16. Question 16 of 25Medium

    Which of the following defects is typically covered under an extended coverage title insurance policy but excluded from a standard coverage policy?

    1. AA. Incompetence of a prior grantor in the recorded chain of title
    2. BB. Unrecorded rights of parties in physical possession of the property
    3. CC. Forged deeds and signatures appearing in the public record
    4. DD. Improper delivery of a recorded deed from an earlier transaction
    Show answer to question 16

    Answer: B. Unrecorded rights of parties in physical possession of the property

    In the standard-versus-extended coverage distinction commonly taught for licensing exams, extended coverage generally adds protection against certain off-record matters, including unrecorded rights of parties in possession and survey-related defects. Coverage remains subject to the policy's terms, exclusions, and specific exceptions. Standard coverage ordinarily protects against hidden title defects such as forgery, a prior grantor's lack of legal capacity, and improper delivery of a deed.

    Why the other options are wrong

    • AStandard coverage typically protects against a prior grantor's legal incompetence, so choosing this answer mistakes a covered hidden title defect for a risk requiring extended coverage.
    • CStandard coverage typically protects against forged deeds and signatures in the recorded chain of title, so choosing this answer incorrectly treats forgery protection as an extended-coverage benefit.
    • DStandard coverage typically protects against title defects caused by improper delivery of a recorded deed, so choosing this answer incorrectly assumes that this hidden defect requires extended coverage.

17. Question 17 of 25Easy

    Mara takes title to a duplex as its sole owner. In real estate terminology, which form of ownership is this?

    1. AA. Tenancy by the entirety
    2. BB. Ownership in severalty
    3. CC. Tenancy in common
    4. DD. Joint tenancy
    Show answer to question 17

    Answer: B. Ownership in severalty

    Ownership in severalty means sole ownership: one person or legal entity holds the estate without co-owners. The term refers to ownership being separate from that of any other owner.

    Why the other options are wrong

    • ATenancy by the entirety is a form of ownership by spouses, where recognized, not ownership by one person alone.
    • CTenancy in common requires two or more co-owners. Mara owns the property without co-owners.
    • DJoint tenancy requires two or more co-owners. Mara owns the property without co-owners.

18. Question 18 of 25Medium

    Alex conveyed land to Blake by warranty deed. Blake moved onto the land but did not record. Alex then conveyed the same land to Casey, who inspected the property, saw Blake in possession, and recorded first. Under a notice recording statute, who likely prevails?

    1. AA. Casey likely prevails because inspecting the property satisfied Casey's duty to inquire.
    2. BB. Casey likely prevails because Blake's unrecorded deed conveyed only equitable title.
    3. CC. Blake likely prevails because possession gave Casey inquiry notice.
    4. DD. Casey likely prevails because Casey recorded the second deed first.
    Show answer to question 18

    Answer: C. Blake likely prevails because possession gave Casey inquiry notice.

    A deed is generally valid between the grantor and grantee even before recording, although recording protects against later purchasers. Under a notice statute, a later purchaser with actual or inquiry notice of the earlier conveyance is not a bona fide purchaser, and visible possession ordinarily triggers a duty to inquire.

    Why the other options are wrong

    • ASeeing Blake in possession ordinarily required Casey to inquire into Blake's rights. Inspection alone did not satisfy that duty.
    • BA valid, delivered deed generally transfers legal title even before recording. Blake's failure to record did not limit Blake to equitable title.
    • DUnder a notice statute, recording first does not protect a purchaser who already has notice of the earlier deed.

19. Question 19 of 25Easy

    A property owner dies without a valid will, leaving legal heirs entitled to the property. The transfer of title to those heirs under state intestacy statutes is known as:

    1. AA. Devise
    2. BB. Escheat
    3. CC. Descent
    4. DD. Probate
    Show answer to question 19

    Answer: C. Descent

    Descent is the transfer of title to heirs under intestate succession. Devise is a transfer of real property by will. Escheat occurs when property passes to the state because no legally entitled heirs exist. Probate is the judicial process of administering an estate, whether testate or intestate.

    Why the other options are wrong

    • ADevise refers to a gift of real property by will, not intestate transfer.
    • BEscheat transfers property to the state when no legally entitled heirs exist. The owner in this question left legal heirs.
    • DProbate is the judicial process of administering an estate, not the specific term for the transfer of title to heirs under intestate succession.

20. Question 20 of 25Easy

    In jurisdictions that recognize tenancy by the entirety, which characteristic distinguishes it from joint tenancy?

    1. AA. It is reserved for spouses or partners granted equivalent property rights under applicable law.
    2. BB. It requires equal ownership shares.
    3. CC. It includes the right of survivorship.
    4. DD. It can be severed by one owner's conveyance without the other owner's consent.
    Show answer to question 20

    Answer: A. It is reserved for spouses or partners granted equivalent property rights under applicable law.

    Tenancy by the entirety is reserved for spouses or partners granted equivalent property rights under applicable law. Joint tenancy does not require that relationship. Both include survivorship, but an owner generally cannot unilaterally sever a tenancy by the entirety while the qualifying relationship continues.

    Why the other options are wrong

    • BJoint tenancy requires equal undivided ownership interests, known as the unity of interest, so equal shares do not distinguish the two forms.
    • CBoth tenancy by the entirety and joint tenancy include the right of survivorship.
    • DOne owner generally cannot sever a tenancy by the entirety through an individual conveyance. A joint tenant can generally sever the joint tenancy by conveying that tenant's interest.

21. Question 21 of 25Easy

    Two co-owners hold title to real estate as joint tenants. One owner desires to liquidate their equity, but the other owner refuses to sell or buy out the interest. Which legal proceeding can the owner initiate to resolve this deadlock?

    1. AA. A quiet title suit to cancel the non-consenting owner's right of survivorship
    2. BB. A suit for condemnation to take the property for private fair market value
    3. CC. An action for ejectment to remove the non-consenting owner from possession
    4. DD. A petition for partition to divide the land or compel a court-ordered sale
    Show answer to question 21

    Answer: D. A petition for partition to divide the land or compel a court-ordered sale

    When co-owners cannot agree on the management, division, or disposition of property, either party may file a suit for partition. The court can physically divide the land (partition in kind) or order the property sold and the proceeds distributed equitably (partition by sale). Ejectment is used to remove wrongful occupants rather than co-owners who hold legal title.

    Why the other options are wrong

    • AThis confuses clearing a title dispute with ending co-ownership. A quiet title suit resolves adverse claims or clouds on title, not a deadlock between joint tenants whose ownership rights are valid.
    • BThis confuses eminent domain with a co-owner's right to partition. Condemnation takes property for a legally authorized public use with just compensation, not simply to cash out an unwilling co-owner.
    • CThis mistakes a lawful co-owner for a wrongful occupant. Ejectment recovers possession from someone wrongfully possessing property, but the other joint tenant has a legal right to possess the property.

22. Question 22 of 25Easy

    Before closing on a house, Priya reads the title commitment and sees a recorded $8,400 mechanic's lien against the seller's property. The lender requires insured first-lien status. What is the most appropriate next step?

    1. AA. Record the buyer's deed immediately before completing a full review of the title records
    2. BB. Ignore the lien because it arose from work that the seller personally did not request
    3. CC. Rely on the owner's title insurance policy to remove the known lien after the closing is complete
    4. DD. Have the seller discharge the lien and provide a recorded release before closing
    Show answer to question 22

    Answer: D. Have the seller discharge the lien and provide a recorded release before closing

    A title search and commitment disclose recorded claims that may affect marketability and lending priority. Because this lien is known before closing, the seller should clear it, with a recorded release, before the buyer and lender accept title.

    Why the other options are wrong

    • ARecording the deed does not erase a prior recorded lien, and the buyer should finish title review before closing.
    • BThe seller's lack of a personal request does not, by itself, invalidate a recorded mechanic's lien.
    • CA title policy generally excepts a known lien shown in the commitment and does not itself remove the lien.

23. Question 23 of 25Easy

    A buyer wants the broadest deed warranties against lawful title claims arising before or during the seller's ownership. Which deed should the buyer seek?

    1. AA. A quitclaim deed
    2. BB. A general warranty deed
    3. CC. A special warranty deed
    4. DD. A bargain and sale deed
    Show answer to question 23

    Answer: B. A general warranty deed

    A general warranty deed contains the broadest covenants, protecting the grantee against covered lawful claims arising before and during the grantor's ownership. The other deed types either limit the grantor's warranties to a shorter period or convey the grantor's interest without the same full covenants.

    Why the other options are wrong

    • AA quitclaim deed conveys whatever interest the grantor has but makes no warranty of title.
    • CA special warranty deed generally warrants only against claims arising through the grantor's own actions or period of ownership.
    • DA bargain and sale deed implies that the grantor holds title but ordinarily does not provide the full general warranty covenants.

24. Question 24 of 25Easy

    In real estate law, constructive notice means that a person is considered to have knowledge of a fact because:

    1. AA. The person was directly informed of the fact.
    2. BB. The fact appears in an instrument properly recorded in the property's chain of title.
    3. CC. The fact was disclosed in a sales contract.
    4. DD. The person directly observed the fact during a personal inspection of the property.
    Show answer to question 24

    Answer: B. The fact appears in an instrument properly recorded in the property's chain of title.

    Constructive notice is knowledge attributed to a person by law, even without actual knowledge. An instrument properly recorded in the appropriate public records within the property's chain of title generally provides constructive notice of its contents to subsequent purchasers and creditors, subject to applicable recording law. Mere public availability does not necessarily establish constructive notice.

    Why the other options are wrong

    • AThis describes actual notice, not constructive notice.
    • CA party who receives the disclosure has actual notice. Merely stating a fact in a sales contract does not establish constructive notice.
    • DDirectly observing a fact gives actual notice of that fact. Visible possession or other circumstances may also put a purchaser on inquiry notice.

25. Question 25 of 25Easy

    In a condominium regime, a unit owner holds fee simple title to their individual unit and owns an undivided interest in the common elements. Which of the following best describes the ownership interest in the common elements?

    1. AA. Leasehold interest
    2. BB. Tenancy in common
    3. CC. Joint tenancy
    4. DD. Cooperative share
    Show answer to question 25

    Answer: B. Tenancy in common

    Condominium owners hold an undivided fractional interest as tenants in common in the common areas. They do not hold joint tenancy (right of survivorship) or leasehold (rental). Cooperative ownership involves shares in a corporation.

    Why the other options are wrong

    • AA leasehold interest is a rental arrangement, not the ownership form for condominium common elements.
    • CJoint tenancy includes right of survivorship, which typically does not apply to condominium common element ownership.
    • DA cooperative share represents ownership in a corporation, not an interest in common elements of a condominium.

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