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A deed is primarily used to:
A. Establish a loan agreement between a borrower and lender
B. Transfer ownership interest in real property from one party to
another
C. Create a zoning restriction on a property
D. Determine the market value of real estate
Answer: B. Transfer ownership interest in real property from one party
to another
Rationale: A deed is a written legal instrument used to transfer title or
an ownership interest in real property from a grantor (seller or
transferor) to a grantee (buyer or recipient). Deeds do not create loans,
determine values, or establish zoning regulations.
,In a California deed, the person transferring ownership of the property
is known as the:
A. Grantee
B. Beneficiary
C. Grantor
D. Trustee
Answer: C. Grantor
Rationale: The grantor is the individual or entity conveying ownership
rights in real property. The grantee is the person receiving the interest.
A beneficiary receives benefits under a trust or loan arrangement, and
a trustee manages property held in trust.
The person receiving ownership of real property through a deed is
called the:
A. Grantor
B. Grantee
C. Mortgagor
D. Lessor
,Answer: B. Grantee
Rationale: The grantee is the recipient of the property interest
conveyed by the deed. The deed identifies both parties by naming the
grantor who transfers the property and the grantee who receives it.
Which type of deed provides the greatest protection to a buyer
because it contains warranties of title?
A. Quitclaim deed
B. Grant deed
C. Trustee’s deed
D. Tax deed
Answer: B. Grant deed
Rationale: In California, a grant deed is commonly used in real estate
transactions and provides implied warranties that the grantor has not
previously conveyed the property to another party and that the
property is free from undisclosed encumbrances created by the
grantor.
A quitclaim deed transfers:
, A. Full ownership with complete title guarantees
B. Only the interest the grantor currently has in the property
C. A guaranteed marketable title
D. Ownership after a foreclosure sale only
Answer: B. Only the interest the grantor currently has in the property
Rationale: A quitclaim deed conveys whatever interest the grantor may
have, if any, without making warranties regarding ownership or title
defects. It is often used to clear title issues or transfer property
between related parties.
A deed becomes effective in California when it is:
A. Typed by a real estate broker
B. Signed, delivered, and accepted
C. Approved by a lender
D. Listed in a multiple listing service
Answer: B. Signed, delivered, and accepted