Test Bank Answer Key
Chapter 8 Deeds
TRUE/FALSE
1. The doctrine of caveat emptor (let the buyer beware) applies to the law of real property
transfers.
2. There is an implied warranty of title in all real property transfers.
3. In the absence of an express covenant for title, the full risk of title failure falls on the purchaser
of real property.
4. A warranty contained in a general warranty deed that the land is unencumbered is known as the
“covenant of seisin.”
5. A warranty contained in a general warranty deed that the land is unencumbered is known as the
“covenant of quiet enjoyment.”
6. The covenant of seisin is a present covenant.
7. The covenant of quiet enjoyment is a future covenant.
8. The covenant of quiet enjoyment in a warranty deed is a present covenant.
9. A deed that covenants against the lawful claims of people claiming by, through, or under the
grantor is known as a quitclaim deed.
10. A deed that covenants only against the lawful claims of people claiming by, through, or under
the grantor is a general warranty deed.
11. A deed that covenants only against the lawful claims of people claiming by, through, or under
the grantor is a limited warranty deed.
12. A quitclaim deed contains no covenants or warranties of title.
13. An oral deed is enforceable.
14. A deed must be in writing.
15. Deeds are generally signed only by the grantor.
16. Deeds are generally signed only by the grantee.
17. A deed need not have consideration to be valid.
18. A deed must have consideration to be valid.
19. Deeds for love and affection with no monetary consideration are not valid.
20. All states require that deeds must be witnessed in order to be valid.
21. An interested witness, such as the grantee of a deed, cannot witness the grantor’s signature
to a deed.
22. The grantee of a deed is a competent witness to the grantor’s signature of a deed.
23. A deed, once signed by the grantor, conveys ownership of the property to the grantee.
24. Possession of the deed by the grantor is presumption of delivery.
25. Possession of the deed by the grantor is presumption of nondelivery.
26. The law of the state in which the land to be conveyed is located controls the formal
requirements of the deed.
27. The execution portion of a deed is known as the habendum.
28. The execution portion of a deed is known as the testimonium.
29. A corrective deed is valid without any additional consideration.
30. Acceptance by the grantee of a corrective deed is admission of the error found in the
original deed.
MULTIPLE CHOICE
1. Which of the following is not a present covenant contained in a general warranty deed?
A. Covenant of seisin
B. Covenant of quiet enjoyment
C. Covenant of right to convey
D. Covenant against encumbrances
2. Which of the following is not a future covenant contained in a general warranty deed?
A. Covenant of quiet enjoyment
B. Covenant of further assurance
C. Covenant of seisin
D. Covenant of warranty
3. Which of the following deed covenants can only be enforced by the owner of the property
against the person who gave the property to him or her?
A. Covenant of seisin
B. Covenant of right to convey
C. Covenant against encumbrances
D. All of the above
E. None of the above
4. Which of the following deed covenants run with the land and is/are enforceable by any owner
of the land?
A. Covenant of quiet enjoyment
B. Covenant of further assurance
C. Covenant of warranty
D. All of the above
5. Which of the following covenants is not/are not found in a quitclaim deed?
A. Covenant of seisin
B. Covenant against encumbrances
C. Covenant of quiet enjoyment
D. All of the above
6. Which of the following deeds are typically quitclaim deeds?
A. Executor’s deeds
B. Administrator’s deeds
C. Trustee’s deeds
D. Foreclosure deeds
E. All of the above
F. None of the above
7. Which of the following is generally not a requirement for a valid deed?
A. Signature of grantee
B. Adequate description of land
C. Delivery of deed to grantee
D. Consideration
8. Which of the following is not a formal part of a deed?
A. Caption
B. Description
C. Habendum clause
D. Testimonium
E. None of the above
9. Which of the following persons would not be a competent witness to the grantor’s signature
on a deed?
A. Grantor’s spouse
B. Next-door neighbor
C. Grantee
D. Lawyer who prepared the deed
10. Which of the following presumptions is incorrect?
A. Possession of the deed by the grantor is presumption of nondelivery.
B. Possession of the deed by the grantee is presumption of nondelivery.
C. Recordation of a deed in the public records is presumption of delivery.
D. Possession of the deed by the grantee is a presumption of delivery.
SHORT ANSWER
1. Acme Land Company sold a lakefront lot to Sarah Farris. The date of the sale was July 30,
2013. Acme transferred the lot to Sarah by a limited warranty deed. The deed warranted that the
property was free of liens and encumbrances. Acme had owned the lot since March 10, 2007.
After the sale, when Sarah was seeking a mortgage loan to build a home on the lot, Sarah
discovered that the lot was encumbered by an easement for general public access to the lake.
The easement was created in April 2004 by a previous owner of the lot. The easement reduced
the size of the lot for building purposes and reduced its value. Can Sarah sue Acme for breach
of a deed warranty?
2. John, as grantor, signed a deed for some farmland to his best friend William, as grantee. John
did not give the deed to William but instead kept it with his private papers in his bank safety
deposit box. Does William own the farmland described in the deed? Explain your answer.
3. Naomi signed, delivered and recorded a deed to a vacation home, transferring the home to her
former college roommate Jill. A year after the deed was recorded, Naomi needed money and
asked Jill to give the home back to her. Jill agreed and she returned the original deed signed by
Naomi to her. Does Naomi now own the vacation home?