Retake Recovery Practice Set Preview

1. A.Binds her as the new owner and stays in place
2. B.May be removed by recording a new deed
3. C.Expires automatically when the property sells
4. D.Affects only the seller who granted it

Why each choice works or fails

• A. Correct. The easement runs with the land and binds the buyer.
• B. A new deed to the buyer does not release someone else's easement.
• C. Candidates assume a sale resets the title, but a recorded easement survives the sale.
• D. Candidates think the grant is personal to the grantor, but it burdens the land, not just the person who granted it.

Rule to remember: A recorded easement burdens the land and binds each later owner. A sale or new deed does not remove it.

1. A.Escheat
2. B.Eminent domain
3. C.Adverse possession
4. D.Intestate succession

Why each choice works or fails

• A. Correct. Escheat passes property with no will and no heirs to the state.
• B. Candidates link any state acquisition to eminent domain, but that is a paid taking for public use.
• C. Adverse possession is a claim by a private occupier, not the state.
• D. Intestate succession distributes to heirs, and here there are none.

Rule to remember: No will and no heirs means escheat to the state.

1. A.Quitclaim deed
2. B.Special warranty deed
3. C.General warranty deed
4. D.Bargain and sale deed

Why each choice works or fails

• A. Candidates confuse simplicity with safety, but a quitclaim deed carries no warranties at all.
• B. A special warranty deed covers only defects arising during the grantor's ownership.
• C. Correct. A general warranty deed warrants title against defects from any period.
• D. A bargain and sale deed implies the grantor holds title but gives few or no warranties.

Rule to remember: General warranty covers all of history. Special warranty covers only the grantor's time.

1. A.The owner's policy also covers physical defects
2. B.The lender's policy transfers to her once the loan is paid off
3. C.The lender's policy also covers her equity
4. D.The lender's policy protects only the lender

Why each choice works or fails

• A. Title insurance covers title defects, not the property's physical condition.
• B. A lender's policy ends when the loan is paid; it never converts into owner coverage.
• C. Candidates assume one policy protects everyone, but the lender's policy covers only the lender's interest, up to the loan balance.
• D. Correct. Only an owner's policy protects the buyer's own interest.

Rule to remember: A lender's title policy protects only the lender. The buyer needs an owner's policy to protect her own interest.

1. A.Conduct a full professional inspection of all systems
2. B.Take possession of the property before closing
3. C.Renegotiate the purchase price one final time
4. D.Confirm condition and that agreed repairs were done

Why each choice works or fails

• A. Candidates treat it as a last inspection, but full inspections happen earlier in the due diligence period.
• B. Possession follows closing unless the contract says otherwise.
• C. The walk-through is for verification, not for reopening the price.
• D. Correct. It confirms condition and completed repairs.

Rule to remember: The final walk-through confirms condition and completed repairs. It is not a new inspection or renegotiation.

1. A.Lasts for the entire life of the building
2. B.Covers appliances but not structural elements
3. C.Comes from the builder and covers the construction
4. D.Is bought from a third party for an annual fee

Why each choice works or fails

• A. Builder warranty periods are limited, not perpetual.
• B. Candidates reverse the two products. Builder warranties reach structural elements.
• C. Correct. The builder warrants its own construction work.
• D. Buying from a third party for a fee describes a home warranty plan.

Rule to remember: A builder warranty is the builder's promise on its own work. A home warranty plan is bought from a third party.

1. A.Has been insured by a licensed title company
2. B.Carries no encumbrances of any kind at all
3. C.A reasonable buyer would accept without doubt
4. D.Has been held by one owner for many years

Why each choice works or fails

• A. Insurance and marketability are separate. A policy can insure over a defect that still makes title unmarketable.
• B. Candidates equate marketable with perfect, but ordinary encumbrances do not defeat marketability.
• C. Correct. Title free from reasonable doubt, which a reasonable buyer would accept, is marketable.
• D. Length of ownership does not decide marketability.

Rule to remember: Marketable title is title a reasonable buyer would accept, free of reasonable doubt, not free of every encumbrance.