### What is the main purpose of a deed in real estate? - [x] To establish legal ownership of a property - [ ] To indicate the amount of property taxes due - [ ] To outline the terms of the mortgage - [ ] To list property improvements > **Explanation:** A deed in real estate primarily establishes that you are the legal owner of the property in question. When the property is sold, the deed is transferred to the new owner. ### Who uses an administrator's deed? - [ ] A property developer - [x] An estate - [ ] A bank - [ ] A building inspector > **Explanation:** An administrator's deed is used by an estate to transfer property on behalf of the owner. This becomes necessary when the previous owner has passed away or cannot be located. ### What does having a deed of trust imply? - [ ] You're exempt from paying property taxes - [ ] You have full ownership rights with no obligations - [x] You've given your lender the right to foreclose - [ ] The property is held by the government > **Explanation:** A deed of trust means that you have given your lender the right to foreclose on the property. This is different from foreclosure as it is a voluntary agreement, helping to keep your credit score relatively intact. ### When should you make sure to have a copy of your deed? - [ ] Only upon purchasing the property - [x] At all times - [ ] When listing the property for sale - [ ] Only if you take out a loan against the property > **Explanation:** It is essential to have a copy of any deed you acquire at all times. This document helps resolve any disputes over ownership of the property. ### What happens to the deed when you sell your property? - [ ] It becomes invalid - [x] It is transferred to the new owner - [ ] It is destroyed - [ ] It is retained by the original owner > **Explanation:** When you sell a building or property, the deed is transferred to the new owner, establishing their legal ownership of the property. ### How does an administrator's deed relate to the property owner? - [ ] It absolves them of any future claims - [ ] It specifies building regulations compliance - [x] It allows property transfer on behalf of the owner when they are unavailable - [ ] It outlines rental agreements > **Explanation:** An administrator's deed allows an estate to transfer property on behalf of the owner, often used when the owner is deceased or cannot be located. ### How does a deed of trust affect your credit score compared to a foreclosure? - [x] It helps keep your credit score relatively intact - [ ] It negatively impacts your credit score more - [ ] It has no impact on your credit score - [ ] It improves your credit score > **Explanation:** A deed of trust, which is a voluntary agreement to let the lender foreclose, helps keep your credit score relatively intact compared to a traditional foreclosure, which has a more severe negative impact on credit scores. ### What should you do if there is a dispute over the ownership of a property? - [ ] Rely on word-of-mouth agreements - [ ] Avoid taking any action - [x] Produce a copy of the deed - [ ] File for a new deed > **Explanation:** Having a copy of the deed can help in resolving disputes over the ownership of a property, as it establishes legal ownership rights. ### What information is likely NOT found in a deed? - [x] The amount of your property taxes - [ ] Legal ownership - [ ] Property description - [ ] Transfer of ownership clauses > **Explanation:** While a deed includes information on legal ownership, property description, and transfer clauses, it typically does not include the amount of property taxes. ### Why is the deed essential when selling property? - [ ] It sets the sale price - [ ] It provides tax deductions - [x] It transfers legal ownership to the buyer - [ ] It lists potential buyers > **Explanation:** A deed is essential when selling property because it transfers legal ownership to the buyer, thus completing the sale transaction. ### What is a deed of trust primarily used for? - [ ] Environmental regulations - [ ] Urban planning - [x] Mortgage security and foreclosure processes - [ ] Architectural design approvals > **Explanation:** A deed of trust is primarily used for mortgage security and outlines the foreclosure process, giving the lender the right to foreclose if the borrower fails to meet the obligations. ### Who holds the deed when a property is sold? - [ ] The previous owner - [x] The new owner - [ ] The local government - [ ] The real estate agent > **Explanation:** When a property is sold, the deed is transferred and held by the new owner, establishing their legal ownership. ### What could happen if you lose your copy of the deed? - [x] It may become difficult to prove ownership or resolve disputes - [ ] Ownership automatically transfers to the government - [ ] You must reapply for property taxes - [ ] The property goes to public auction > **Explanation:** Losing your copy of the deed can make it difficult to prove ownership or resolve any disputes related to the property. Overall, it's crucial to retain a copy of your deed. ### What kind of deed helps keep your credit score intact? - [x] Deed of trust - [ ] Administrator's deed - [ ] Quitclaim deed - [ ] General warranty deed > **Explanation:** A deed of trust helps keep your credit score relatively intact as it is a voluntary foreclosure arrangement, unlike traditional foreclosure processes that more severely impact credit scores. ### What is a general warranty deed? - [ ] A deed that transfers rights only in specific conditions - [x] A deed that ensures the grantor has legal rights and title to the property - [ ] A deed for transferring rental agreements - [ ] A deed used exclusively in federal transactions > **Explanation:** A general warranty deed ensures that the grantor has the legal right and title to the property and it guarantees against future claims or encumbrances on the property. ### Which type of deed might be used when the owner can't be located? - [ ] Trustee's deed - [x] Administrator's deed - [ ] Quitclaim deed - [ ] Special warranty deed > **Explanation:** An administrator's deed might be used when the owner of a property cannot be located, allowing an estate to transfer the property on behalf of the owner. ### Which deed offers the least protective warranties? - [ ] Special warranty deed - [ ] General warranty deed - [ ] Trustee's deed - [x] Quitclaim deed > **Explanation:** A quitclaim deed offers the least level of protection for the buyer as it conveys whatever interest the grantor has but does not guarantee that the grantor has valid title to the property. ### What's a key difference between a general warranty deed and a special warranty deed? - [ ] The cost associated with processing the deed - [ ] Who can act as witnesses - [x] The duration of time covered by the warranties offered - [ ] The type of property it can be used for > **Explanation:** A key difference between a general warranty deed and a special warranty deed is the duration of time covered by the warranties. A general warranty deed covers the entire history of the property, while a special warranty deed only covers the period during which the grantor owned it. ### Which deed is not typically used for transfers of ownership? - [ ] Grant deed - [ ] Bargain and sale deed - [x] Receipt deed - [ ] Special warranty deed > **Explanation:** A receipt deed is not a term used in property transfers. Deeds such as grant deed, bargain and sale deed, and special warranty deed are common in these transactions. ### What is the legal significance of a deed? - [ ] Establishing the mortgage amount - [ ] Annual property assessment - [x] Confirming ownership and transfer of property rights - [ ] Renting property to tenants > **Explanation:** The legal significance of a deed lies in confirming ownership and the transfer of property rights from the grantor to the grantee.