California Real Estate Salesperson Exam Practice – Question 80

Question

A grant deed

Selections

A. Warrants that there are no encumbrances on the property being conveyed

B. May be used to transfer both real and personal property

C. Warrants that the property has not been previously conveyed by the grantor

D. May be delivered conditionally


Answer: C


5 Keys Summary

• A grant deed is the most frequently used document in California for conveying title to real property and contains implied warranties from the grantor.

• The core implied warranty related to the correct answer (C) is that the grantor warrants they have not previously conveyed the same estate or any interest therein to any other person.

• A grant deed also implies a warranty that the estate is free from any encumbrances created by the grantor that have not been disclosed to the grantee.

• This warranty specifically protects against undisclosed encumbrances but does not guarantee that there are no encumbrances on the property being conveyed (since disclosed encumbrances like mortgages may exist).

• A grant deed is strictly used to transfer real property, as personal property is typically transferred using a bill of sale, and while deeds can be conditionally delivered through escrow, this is not an implied warranty of the deed itself

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