Where this fits on the exam
| Official syllabus topic | Closing, Recordation, Parties, and Transfer Timing |
|---|---|
| Official PSI area | Transfer of Title |
| Published area weight | 6% of the national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.
The lesson
Closing participants
Buyer, seller, brokers, lender, closing or settlement professional, title insurer, surveyor, inspectors, and government offices have distinct roles. No participant should assume another completed a requirement without confirmation.
Documents and funds
The closing reconciles deed, loan instruments, affidavits, payoff statements, title documents, tax and association information, disclosures, prorations, fees, and authorized wiring.
Transfer and possession
Delivery and acceptance make the deed operative between parties. Funding, recording, keys, and physical possession can occur at different times under the agreement.
Record notice and priority
Proper recordation places later parties on constructive notice and helps establish priority under the jurisdiction's recording statute. Recording cannot cure a forged or otherwise void instrument.
Decision rule
Georgia-specific distinction
Worked example
Scenario. Seller signs on Monday, but the deed is held in escrow until funds arrive and conditions are satisfied on Wednesday.
Reason it through. Signature did not itself establish unconditional delivery. The escrow terms control when delivery becomes effective.
Answer. Analyze transfer at authorized release and acceptance, not simply Monday's signature time.
Common exam traps
- Equating signature with delivery
- Equating recording with possession
- Sending wires from changed email instructions
- Assuming recording cures invalidity
Original practice questions with detailed explanations
These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1A deed is delivered to and accepted by the buyer at closing on Friday, and the closing attorney records it the following Tuesday. What did recording on Tuesday accomplish?
- A. It gave later parties constructive notice
- B. It transferred ownership to the buyer
- C. It gave the buyer the right to possession
- D. It cured any defect in the seller's signature
Show answer and explanation →
Answer: A. It gave later parties constructive notice
Delivery and acceptance made the deed operative on Friday, and recording gives later parties constructive notice and protects priority. Treating recording as the moment ownership transfers is the trap, and recording cannot cure a forged or otherwise void deed.
- A. Correct. Recording a recordable deed puts later parties on constructive notice and helps protect priority.
- B. Incorrect. The deed had already taken effect on delivery and acceptance at Friday's closing.
- C. Incorrect. Possession follows the conveyance and any occupancy agreement, rather than necessarily the recording date.
- D. Incorrect. Recording does not validate a forged signature or automatically correct a defective execution.
Question 2A written occupancy agreement lets the seller stay in the house for five days after closing. The deed is delivered and accepted at closing. When did the buyer become the owner?
- A. When the seller moves out and hands over the keys
- B. When the deed is recorded in the county records
- C. At closing, when the deed was delivered and accepted
- D. When the buyer signed the purchase contract
Show answer and explanation →
Answer: C. At closing, when the deed was delivered and accepted
Ownership passes on valid delivery and acceptance of the deed, while possession can move at a separately agreed time. The keys and move-out date follow the occupancy agreement, not the conveyance, so equating possession with ownership is the mistake.
- A. Incorrect. The agreed move-out date changes possession, not the delivery date of legal title.
- B. Incorrect. Recording protects notice and priority; it is not the event transferring title in these facts.
- C. Correct. Valid delivery and acceptance at closing transfer ownership despite the seller's temporary occupancy.
- D. Incorrect. The contract creates purchase rights; it does not itself deliver the deed and transfer legal title.
Question 3The day before closing, a buyer gets an email that appears to come from the closing attorney's office with new wiring instructions. What should the buyer's licensee advise?
- A. Wire the funds, since the email address looks familiar
- B. Call the attorney's office at a number already verified
- C. Reply to the email to confirm the new account number
- D. Split the wire into two smaller transfers to limit risk
Show answer and explanation →
Answer: B. Call the attorney's office at a number already verified
Changed wire instructions are a classic fraud signal, so they must be confirmed through an independently verified channel, such as a phone number from the engagement documents. Replying to the same email only reaches whoever sent it, which may be the fraudster.
- A. Incorrect. A familiar sender address can be spoofed or compromised, so it does not authenticate the account.
- B. Correct. Calling a previously verified number checks the change through a channel outside the suspect email.
- C. Incorrect. A reply may reach the same fraudster controlling or impersonating the email account.
- D. Incorrect. Splitting a payment still sends money to the suspect destination and can lose both transfers.
Question 4At a Georgia closing, the buyer's licensee sees a fee and loan term on the closing documents that differ from what the buyer expected. What should the licensee do?
- A. Explain the loan's legal effect and change the closing attorney's documents.
- B. Tell the buyer to sign because the closing attorney has already prepared everything.
- C. Flag the discrepancy and have the buyer seek clarification from the lender and closing attorney before signing.
- D. Promise that the title insurer will reimburse any unexpected closing charge.
Show answer and explanation →
Answer: C. Flag the discrepancy and have the buyer seek clarification from the lender and closing attorney before signing.
The licensee should help identify the discrepancy without taking over the lender's credit disclosures or the attorney's legal work. The buyer needs the appropriate closing participants to explain and resolve the issue before signing.
- A. Incorrect. The licensee may identify a problem but should not substitute a legal opinion or unauthorized document revision for the attorney's work.
- B. Incorrect. Preparation of the documents does not eliminate the buyer's need to understand a material discrepancy.
- C. Correct. The lender addresses loan terms, and the closing attorney addresses legal closing documents; timely clarification protects the buyer's decision.
- D. Incorrect. Title insurance covers specified title risks, not every unexpected fee or disagreement about loan terms.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Explain Closing, Recordation, Parties, and Transfer Timing in one clear answer without notes.
- Separate Closing participants from Documents and funds using a fresh example.
- Apply the decision rule to a new fact pattern and name the fact that controls the result.
- State the Georgia-specific point or explain why the national rule applies unchanged.
- Answer every practice question and explain the rule each rejected option misapplies.
- Revisit this topic later in mixed practice without category labels.
Recommended next lesson
Continue with Home and New-Construction Warranties. Next, warranties separates the title promises a deed makes at closing from builder warranties and home service contracts, which cover the condition of the house after the buyer moves in.
Return to the Transfer of Title hub to see every official branch and the complete lesson sequence for this content area.