Real Estate Law Final Exam Prep 2026–2027 Practice
Questions & Detailed Answers
Warranty Deed - correct answers -Covenants clear and legal title, quiet enjoyment, and actively defend
any claims to title that may arise after transfer to the grantee.
Deed - correct answers -A written instruments used to transfer title to property.
Deed Requirements - correct answers -In writing. Name of grantor. Name of grantee. Adequately
describe the property. Signed by grantor. Delivered by grantor. Accepted by grantee.
Deeds - correct answers -Grant Deed. Warranty Deed. Quit Claim Deed.
Grant Deed - correct answers -Covenants that the property is free from encumbrances and not
previously conveyed.
Quit Claim Deed - correct answers -Grantor conveys whatever interest he has in the property.
Cloud on title - correct answers -legal term to describe potential claims or problems in the chain of title
that may cast doubt as to who owns the property
Deed of trust - correct answers -a document that creates a security interest for the lender in the event
that the borrower defaults payment of the loan.
deed of trust - correct answers -security interest for lender, non judicial foreclosure, trustee lender
borrower
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, trustee in a deed of trust - correct answers -appointed third party who primary role is to deliver the
deed when the borrower fully repays the loan
deed of trust - correct answers -trustee lender borrower
Mortgage - correct answers -instrument that creates a voluntary lien on real property to secure
repayment of a promissory note executed by the borrower
mortgage - correct answers -voluntary lien, judicial foreclosure, impound account, lender borrower
Impound account - correct answers -an account created and maintained by the lender for the purpose
of paying taxes and insurance on behalf of the borrower
Foreclosure - correct answers -the enforcement of a deed of trust or mortgage in the event that the
borrower defaults on the loan
judicial foreclosure - correct answers -lis pendens, right to redemption, deficiency judgment
Purchase money mortgage - correct answers -a mortgage that is taken out in conjunction with a loan
that enables the buyer to purchase the property
Deed in lieu of foreclosure - correct answers -an instrument that the borrower gives to the lender with
permission to avoid foreclosure proceedings
2
Questions & Detailed Answers
Warranty Deed - correct answers -Covenants clear and legal title, quiet enjoyment, and actively defend
any claims to title that may arise after transfer to the grantee.
Deed - correct answers -A written instruments used to transfer title to property.
Deed Requirements - correct answers -In writing. Name of grantor. Name of grantee. Adequately
describe the property. Signed by grantor. Delivered by grantor. Accepted by grantee.
Deeds - correct answers -Grant Deed. Warranty Deed. Quit Claim Deed.
Grant Deed - correct answers -Covenants that the property is free from encumbrances and not
previously conveyed.
Quit Claim Deed - correct answers -Grantor conveys whatever interest he has in the property.
Cloud on title - correct answers -legal term to describe potential claims or problems in the chain of title
that may cast doubt as to who owns the property
Deed of trust - correct answers -a document that creates a security interest for the lender in the event
that the borrower defaults payment of the loan.
deed of trust - correct answers -security interest for lender, non judicial foreclosure, trustee lender
borrower
1
, trustee in a deed of trust - correct answers -appointed third party who primary role is to deliver the
deed when the borrower fully repays the loan
deed of trust - correct answers -trustee lender borrower
Mortgage - correct answers -instrument that creates a voluntary lien on real property to secure
repayment of a promissory note executed by the borrower
mortgage - correct answers -voluntary lien, judicial foreclosure, impound account, lender borrower
Impound account - correct answers -an account created and maintained by the lender for the purpose
of paying taxes and insurance on behalf of the borrower
Foreclosure - correct answers -the enforcement of a deed of trust or mortgage in the event that the
borrower defaults on the loan
judicial foreclosure - correct answers -lis pendens, right to redemption, deficiency judgment
Purchase money mortgage - correct answers -a mortgage that is taken out in conjunction with a loan
that enables the buyer to purchase the property
Deed in lieu of foreclosure - correct answers -an instrument that the borrower gives to the lender with
permission to avoid foreclosure proceedings
2
