Ownership and Title Practice Questions: Estates, Deeds and Recording
Ownership, transfer and recording of title account for nine scored questions on the National portion of the Texas sales agent exam. This free set gives you 20 original questions on estates, co-ownership, deeds, liens, title insurance and public notice. Each answer has an explanation and a source. Four separate Texas examples follow and do not affect your National quiz score.
20 questions on ownership & title, scored, each with a full explanation after you answer. Every question is also written out below if you would rather study at your own pace.
20 questions
~15 min
National practice only
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Study mode · National principles
Work through the questions at your own pace.
Choose an answer mentally, then open its explanation. Each question has a source and a point to watch. These are original practice questions, not Pearson VUE exam items or a prediction of your result.
1
Ownership with no built-in ending
An owner holds an inheritable estate of unlimited duration. The conveyance imposes no condition that could end the estate. Which estate is this?
A.Fee simple determinable
B.Fee simple absolute
C.Life estate
D.Periodic tenancy
Check answer and explanation
Correct answer: B. Fee simple absolute
Fee simple absolute has no specified ending date or grantor-imposed condition that can cut it short. It can pass during life or at death. 'Absolute' does not exempt the land from taxes, public controls or valid encumbrances.
Why the other choices miss:
A. Fee simple determinable: A determinable fee can end automatically when its stated condition occurs. This conveyance has no such ending condition.
C. Life estate: A life estate lasts for a measuring life. It is not the inheritable estate of unlimited duration described here.
D. Periodic tenancy: A periodic tenancy is a leasehold that continues through successive periods. It is not ownership of the fee.
Watch for this: Unlimited duration does not mean unlimited freedom to use the land.
A grantor's deed gives Elena a life estate and, in the same deed, gives the property to her nephew after Elena's death. What future interest does the nephew hold?
A.Reversion
B.Leasehold
C.Possibility of reverter
D.Remainder
Check answer and explanation
Correct answer: D. Remainder
The nephew's right to possession follows the natural end of Elena's life estate under the same conveyance. That is a remainder. A reversion would be the future interest retained by the grantor rather than granted to the nephew.
Why the other choices miss:
A. Reversion: A reversion remains with the grantor. Here the deed gives the future interest to the nephew instead.
B. Leasehold: The nephew's interest follows the life estate under the deed. No lease grants him possession for a rental term.
C. Possibility of reverter: A possibility of reverter follows a determinable fee's automatic termination. Elena instead holds a life estate.
Watch for this: The nephew can hold a future interest now without having the current right to occupy the home.
Rule: Estate doctrine; life estate, remainder and reversion
Survivorship under the traditional four-unities model
Two owners validly create co-ownership with equal undivided interests, survivorship, and the traditional unities of time, title, interest and possession. Which form matches these facts?
A.Joint tenancy with right of survivorship
B.Tenancy in common
C.Life estate with a remainder
D.Periodic tenancy
Check answer and explanation
Correct answer: A. Joint tenancy with right of survivorship
These are the traditional joint-tenancy features. The surviving joint tenant takes the deceased tenant's interest if the survivorship arrangement remains effective. Creation and severance rules vary by state, so this model is not a substitute for checking local law.
Why the other choices miss:
B. Tenancy in common: Tenancy in common does not include the traditional automatic survivorship described in the question.
C. Life estate with a remainder: A life estate followed by a remainder gives successive interests. These owners hold equal concurrent undivided interests.
D. Periodic tenancy: Periodic tenancy describes a renewable leasehold term. It does not name the ownership arrangement described here.
Watch for this: Do not carry the traditional label into Texas and assume that joint ownership alone creates survivorship.
Rule: Estate doctrine; traditional joint tenancy and four unities
Two friends hold undivided 40 percent and 60 percent interests in land. Neither has a survivorship right, and each can leave their share by will. Which form of ownership fits?
A.Joint tenancy
B.Ownership in severalty
C.Tenancy in common
D.Life estate
Check answer and explanation
Correct answer: C. Tenancy in common
Tenants in common can hold unequal undivided shares. Each has a right to use the whole property, subject to the other owner's equal right of possession. A deceased owner's share passes by will or applicable succession rules, not automatically to the cotenant.
Why the other choices miss:
A. Joint tenancy: The traditional joint-tenancy model includes equal interests and survivorship. These facts expressly provide neither combination.
B. Ownership in severalty: Severalty means ownership by one owner. This property has two owners with undivided interests.
D. Life estate: A life estate is measured by a life. These owners hold inheritable shares rather than interests that end at death.
Watch for this: A 40 percent interest does not, by itself, assign the owner a particular 40 percent of the land.
For an ordinary deed conveying property to a buyer, which item is NOT a general requirement for the deed's effectiveness between the parties?
A.Grantor and grantee identified
B.Adequate property description
C.Grantor's execution
D.Grantee's signature
Check answer and explanation
Correct answer: D. Grantee's signature
The person conveying the interest executes the deed. The grantee must accept the conveyance, but acceptance does not generally require signing the deed. The writing, conveyance language, capacity, description and delivery still matter. Separate agreements or special transactions may need additional signatures.
Why the other choices miss:
A. Grantor and grantee identified: The deed must identify who conveys and who receives the interest. Identification is different from requiring both parties to sign.
B. Adequate property description: The description identifies the land conveyed. It cannot be omitted merely because the buyer accepts the deed.
C. Grantor's execution: The grantor's execution is a general requirement for the ordinary deed. The question asks which listed item is not generally required.
Watch for this: Do not confuse signing the purchase contract with signing the instrument that conveys the property.
Rule: Title doctrine; deed execution and acceptance
Which deed ordinarily gives the broadest title warranty, including covered claims arising before the grantor acquired the property?
A.Quitclaim deed
B.General warranty deed
C.Special warranty deed
D.Deed of trust
Check answer and explanation
Correct answer: B. General warranty deed
A general warranty is not limited to title problems arising through this grantor. A special warranty narrows the promise to claims by, through or under the grantor; a quitclaim gives no title warranty. Read the actual deed and its exceptions. A warranty is a promise about title, not a cure for every defect or a guarantee of the building's condition.
Why the other choices miss:
A. Quitclaim deed: A quitclaim offers no title warranty. It does not give the broad protection against earlier title claims described here.
C. Special warranty deed: A special warranty limits the promise to claims by, through or under the grantor. That is narrower than a general warranty.
D. Deed of trust: A deed of trust secures an obligation. It is not the broad title warranty in the deed conveying ownership to the buyer.
Watch for this: Special warranty is narrower protection, not a promise that the title is worse or the estate conveyed is smaller.
Rule: Title doctrine; general warranty, special warranty and quitclaim deeds
A person actually occupies another's land openly, exclusively, continuously and under a claim hostile to the owner's rights for the required statutory period. Which doctrine could allow that person to acquire title if all applicable requirements are met?
A.Gift deed
B.Escheat
C.Adverse possession
D.Lease assignment
Check answer and explanation
Correct answer: C. Adverse possession
Adverse possession can lead to ownership when the required possession and all jurisdiction-specific conditions are established. 'Hostile' means inconsistent with the owner's rights, not angry or threatening. A permissive use is not adverse while that permission continues.
Why the other choices miss:
A. Gift deed: A gift deed is a voluntary conveyance by the owner. The occupier here claims rights through adverse possession, not a gift.
B. Escheat: Escheat concerns property passing to the state when no eligible successor exists. It does not describe this possession claim.
D. Lease assignment: A lease assignment transfers an existing tenant's leasehold interest. This scenario does not involve a tenant assigning a lease.
Watch for this: There is no single nationwide adverse-possession deadline, and occupying land does not by itself establish a successful claim.
A grantor intentionally delivers an otherwise valid ordinary deed as a present transfer, and the buyer accepts it. The buyer has not recorded it. Which statement is generally correct between these two parties?
A.Title can pass before recording
B.Title waits for public recording
C.The grantor retains title
D.The buyer receives only a leasehold
Check answer and explanation
Correct answer: A. Title can pass before recording
Legal delivery and acceptance can make the deed effective between the parties before recording. Delivery requires intent to make the transfer effective, not merely handing over paper. Recording serves a different purpose: notice and protection under the applicable recording law.
Why the other choices miss:
B. Title waits for public recording: Recording and effective delivery serve different purposes. Proper delivery and acceptance can transfer title between these parties first.
C. The grantor retains title: The question expressly supplies a valid present transfer and acceptance. Failure to record alone does not undo that transfer between the parties.
D. The buyer receives only a leasehold: The deed conveys the ownership interest described, not merely a tenant's right of possession. No lease is involved.
Watch for this: Leaving a signed deed in a drawer does not automatically establish delivery.
Rule: Title doctrine; deed delivery versus recording
A previously unknown title claim predating a home purchase causes a covered loss. Whose interest does an owner's title insurance policy protect?
A.The mortgage lender
B.The seller
C.The brokerage
D.The insured owner
Check answer and explanation
Correct answer: D. The insured owner
An owner's policy protects the owner's interest against covered title risks. A lender's title policy protects the lender's interest and is not a replacement for the owner's coverage. Neither policy should be confused with homeowners insurance for physical property damage.
Why the other choices miss:
A. The mortgage lender: The lender's interest is protected by the lender's policy. An owner's policy is a separate contract for the insured owner's interest.
B. The seller: The seller does not become the insured owner under the buyer's policy simply because the title problem predates the purchase.
C. The brokerage: The brokerage's role in the transaction does not make it the insured under the owner's title policy.
Watch for this: A policy is not blanket protection. Its covered risks, exceptions, exclusions, conditions and limits control.
Rule: Title doctrine; owner's and lender's title insurance
A deed eligible for recording is properly recorded in the correct county and chain of title. What is the principal notice effect, even for someone who has not actually read it?
A.Actual notice
B.Constructive notice
C.Marketable title
D.Title insurance
Check answer and explanation
Correct answer: B. Constructive notice
Constructive notice is notice attributed by law rather than actual knowledge gained by reading the deed or being told about it. Proper recording is a common source. It does not validate a forged deed or settle every priority dispute; recording requirements and priority rules still matter.
Why the other choices miss:
A. Actual notice: Actual notice means actual knowledge. The question asks about the notice effect even when someone has not read the record.
C. Marketable title: Marketability concerns the quality of title. Recording can give notice without removing a material defect or ownership claim.
D. Title insurance: Insurance is a contractual promise of coverage. Recording a deed does not create an insurance policy.
Watch for this: Ask separately whether the deed is valid, whether notice exists, and which claim has priority.
Rule: Recording doctrine; constructive versus actual notice
An owner grants a tenant exclusive possession of a house for a valid two-year lease term but keeps ownership. Which idea does this illustrate?
A.A merger of both estates
B.A transfer of the fee
C.A separation of ownership rights
D.A conveyance of mineral rights
Check answer and explanation
Correct answer: C. A separation of ownership rights
A lease separates the tenant's present right of possession from the landlord's retained ownership and reversion. The tenant gets the rights granted by the lease, not the power to sell the landlord's estate. This is a straightforward example of the bundle of rights.
Why the other choices miss:
A. A merger of both estates: Merger generally requires the relevant interests to unite under conditions recognized by law. Here landlord and tenant retain separate interests.
B. A transfer of the fee: The landlord keeps ownership. The tenant's leasehold possession does not transfer the landlord's fee estate.
D. A conveyance of mineral rights: The question grants possession of the house under a lease. It does not convey or reserve a mineral estate.
Watch for this: A right to occupy is not the same interest as ownership of the fee.
Rule: Bundle of rights; leasehold estate and reversion
A retail lease charges $3,000 per month plus 5 percent of all gross sales for that month, with no breakpoint or other rent adjustment. Which financial lease type is this?
A.Percentage lease
B.Fixed-rent lease
C.Index lease
D.Graduated-rent lease
Check answer and explanation
Correct answer: A. Percentage lease
Sales-based rent identifies a percentage lease. In this example, $40,000 of monthly gross sales produces $2,000 of percentage rent, plus the $3,000 base, for $5,000 total. Other leases can use breakpoints or different formulas. The stated agreement controls.
Why the other choices miss:
B. Fixed-rent lease: A fixed-rent arrangement does not make rent vary with this month's sales. The five-percent component does.
C. Index lease: An index lease adjusts rent using a specified index. This agreement uses the tenant's gross sales instead.
D. Graduated-rent lease: Graduated rent changes according to an agreed schedule. The variable amount here comes from sales, not scheduled rent increases.
Watch for this: Percentage describes how rent is calculated; estate for years or periodic tenancy describes the term.
Rule: Estate doctrine; percentage lease and stated rent formula
A person dies without a valid will, leaving solely owned land in the probate estate and surviving statutory heirs. No trust, survivorship right or transfer-on-death arrangement governs that land. What determines who inherits it?
A.Escheat
B.Intestate succession
C.A transfer-on-death deed
D.A probate sale
Check answer and explanation
Correct answer: B. Intestate succession
Intestate succession identifies heirs when property is not disposed of by a valid will. That does not automatically send the land to the state. Escheat is the fallback when there is no person legally entitled to inherit. Valid nonprobate arrangements can direct other assets differently.
Why the other choices miss:
A. Escheat: Escheat is not the result merely because there is no will. The question supplies statutory heirs entitled to inherit.
C. A transfer-on-death deed: The question expressly excludes a transfer-on-death arrangement for this land. Do not invent one to avoid intestacy.
D. A probate sale: A probate sale is a disposition during administration. It does not identify which heirs inherit under the stated facts.
Watch for this: Start by identifying the asset and how it is held. 'No will' does not mean every asset follows the same route.
Rule: Title doctrine; intestate succession and escheat
Which term describes title reasonably free of material defects and substantial doubt about ownership, rather than a guarantee of absolute perfection?
A.Color of title
B.Clouded title
C.Equitable title
D.Marketable title
Check answer and explanation
Correct answer: D. Marketable title
Marketable title is sufficiently free of significant defects and reasonable doubt to be acceptable in a sale. A substantial unresolved ownership claim can impair it. Whether a particular buyer must close depends on the contract and applicable law, not this label alone.
Why the other choices miss:
A. Color of title: Color of title describes apparent title based on an instrument that may be defective. It does not establish reasonable freedom from substantial title doubt.
B. Clouded title: Clouded title contains a claim or defect casting doubt on ownership. That is the problem this definition avoids.
C. Equitable title: Equitable title describes a beneficial or equitable interest. It does not, by itself, establish the quality of title described here.
Watch for this: An insurer's willingness to issue a policy with exceptions is not, by itself, proof that every title objection is resolved.
Rule: Title doctrine; marketable title and clouds on title
A valid mortgage is properly perfected before a judgment lien attaches to the same land. No statute, subordination agreement or other exception changes their order. Which lien has priority?
A.The mortgage
B.The judgment lien
C.Both equally
D.Neither lien
Check answer and explanation
Correct answer: A. The mortgage
On these stated facts, the earlier mortgage is senior under the general first-in-time rule. Statutory priorities and subordination can change that result in other problems. A lien's priority is not the same question as how a particular foreclosure distributes proceeds or affects existing liens.
Why the other choices miss:
B. The judgment lien: The judgment lien attaches later. With no stated exception or subordination, it does not outrank this earlier perfected mortgage.
C. Both equally: Both liens may affect the land without sharing the same priority. These facts place the mortgage ahead of the judgment lien.
D. Neither lien: The question states that the mortgage is valid and the judgment lien attaches. Their existence is not the disputed point.
Watch for this: Voluntary and involuntary describe how liens arise; those labels do not settle their priority.
Rule: Title doctrine; lien priority and subordination
An owner holds both the surface and the oil and gas estate. A valid deed conveys the surface to a buyer and expressly reserves all of the owner's oil and gas rights. What does the buyer receive?
A.Surface and mineral estates
B.A personal license
C.The surface estate only
D.The mineral estate only
Check answer and explanation
Correct answer: C. The surface estate only
Surface and mineral interests can be separately owned. The express reservation leaves the seller with the mineral interest described and the buyer with the surface. It does not mean the surface owner controls every subsurface activity. Access rights depend on the instruments and applicable law.
Why the other choices miss:
A. Surface and mineral estates: The deed expressly reserves the seller's oil and gas estate. The buyer therefore does not receive both interests.
B. A personal license: The deed conveys the surface estate. A personal license merely permits an activity and is not that ownership interest.
D. The mineral estate only: The seller reserves the oil and gas rights and conveys the surface. This choice reverses what each party receives.
Watch for this: First establish what the seller owned and what the deed actually conveys or reserves.
Rule: Bundle of rights; severed surface and mineral estates
Assume a valid, enforceable grant creates a fee that automatically ends and returns to the grantor if the land stops being used as a community garden. Which estate does the grantee hold?
A.Fee simple absolute
B.Life estate
C.Fee simple subject to a condition subsequent
D.Fee simple determinable
Check answer and explanation
Correct answer: D. Fee simple determinable
Automatic termination on the stated event identifies a fee simple determinable, with a possibility of reverter retained by the grantor. A condition subsequent instead gives the grantor a right to act to reclaim the estate. The question supplies enforceability; a real deed requires legal interpretation.
Why the other choices miss:
A. Fee simple absolute: An absolute fee has no grantor-imposed condition that cuts it short. The question supplies an enforceable automatic ending.
B. Life estate: A life estate ends with its measuring life. This grant instead ends on a change in the property's use.
C. Fee simple subject to a condition subsequent: A condition subsequent gives a right to act to reclaim ownership. The stated automatic return identifies a different defeasible fee.
Watch for this: A use restriction is not automatically a forfeiture provision. Look for the actual consequence stated in the grant.
Rule: Estate doctrine; determinable fee versus condition subsequent
A lease establishes a fixed six-month term with specified beginning and ending dates. Rent is paid monthly, and there is no automatic renewal. Which leasehold estate describes the original term?
A.Periodic tenancy
B.Estate for years
C.Tenancy at will
D.Tenancy at sufferance
Check answer and explanation
Correct answer: B. Estate for years
An estate for years has a fixed duration, which can be shorter than one year. Monthly payments do not turn this six-month term into a monthly periodic tenancy. Notice, renewal and holdover consequences must still be checked against the lease and applicable law.
Why the other choices miss:
A. Periodic tenancy: Monthly payment alone does not create a recurring monthly term. The lease has fixed beginning and ending dates and no automatic renewal.
C. Tenancy at will: A tenancy at will lacks the fixed term supplied here. The question gives a definite six-month estate.
D. Tenancy at sufferance: Tenancy at sufferance concerns holding over after lawful possession ends without the landlord's consent. This question asks about the original agreed term.
Watch for this: Name the estate from the agreed duration, not from how often rent is paid.
Rule: Estate doctrine; estate for years versus periodic tenancy
A researcher prepares a summary of recorded conveyances, liens and other matters affecting a parcel's ownership history. The document gives no legal opinion and promises no insurance coverage. What is it?
A.Title insurance policy
B.Title opinion
C.Abstract of title
D.Deed
Check answer and explanation
Correct answer: C. Abstract of title
An abstract summarizes relevant recorded matters. The chain of title is the sequence of ownership transfers that the research traces. Neither is the same as an attorney's legal opinion or a title insurer's contractual promise of coverage.
Why the other choices miss:
A. Title insurance policy: A title policy promises coverage under an insurance contract. The document expressly promises no insurance.
B. Title opinion: A title opinion supplies a legal assessment. This document only summarizes recorded matters and expressly gives no legal opinion.
D. Deed: A deed conveys an interest when its requirements are met. A summary of recorded history is not a conveyance.
Watch for this: A record summary can reveal a problem; preparing it does not remove the problem.
Rule: Title doctrine; abstract, chain of title and title opinion
A property owner wants a court to resolve a competing ownership claim and remove a cloud on title. Which general legal process addresses that purpose?
A.Quiet title action
B.Recording a deed
C.Title insurance claim
D.Boundary survey
Check answer and explanation
Correct answer: A. Quiet title action
A quiet title action seeks a judicial determination of competing title claims. Success depends on the evidence and required procedure; filing alone does not clear the title. The appropriate cause of action and who must be joined or notified depend on state law and the dispute.
Why the other choices miss:
B. Recording a deed: Recording a deed can provide notice, but it does not adjudicate another person's competing ownership claim.
C. Title insurance claim: A policy claim asks an insurer to respond under coverage terms. It is different from asking a court to determine competing title claims.
D. Boundary survey: A survey identifies physical boundaries and related features. It does not itself resolve a contested legal ownership claim.
Watch for this: A broker cannot resolve a contested legal ownership claim by rewriting the description or promising that insurance will cover it.
Rule: Title doctrine; quiet title and removal of a cloud
Protects the insured owner's interest against covered risks, subject to the issued policy's terms.
Follow a link to the question, then open the answer for its explanation, wrong-choice reasons and sources. A contested ownership claim may require court action, not just another document.
Optional supplement · Texas-specific applications
4 Texas rules to keep separate.
These examples require Texas form or statutory knowledge. They are not included in the National quiz or its score. If you only need National practice, you can skip to the study resources.
1
Joint ownership without a survivorship agreement
Two unmarried Texans jointly own a house. Their deed says only 'joint owners,' and they have no written survivorship agreement or other transfer-on-death arrangement. Does joint ownership alone give the survivor the deceased owner's share?
A.Yes, if both owners originally paid the same amount
B.Yes, if the surviving owner occupies the property
C.No, joint ownership alone does not create survivorship
D.No, because unmarried owners cannot agree to survivorship
Check answer and explanation
Correct answer: C. No, joint ownership alone does not create survivorship
Estates Code 111.001 permits joint owners to agree in writing to survivorship but forbids inferring that agreement merely from joint ownership. The deceased owner's share therefore does not automatically pass to the other owner on these facts. Spouses' community-property survivorship agreements have a separate statutory framework.
Why the other choices miss:
A. Yes, if both owners originally paid the same amount: Equal contributions do not substitute for a written survivorship agreement. The statute does not infer one from joint ownership.
B. Yes, if the surviving owner occupies the property: Living in the home does not create the missing survivorship agreement. Possession and succession are different questions.
D. No, because unmarried owners cannot agree to survivorship: Texas permits qualifying joint owners to agree in writing to survivorship. Being unmarried does not make such an agreement impossible.
Watch for this: Equal shares, shared possession and the word 'joint' do not replace the required agreement.
A seller delivers a deed to Buyer One, who does not record it. The seller later conveys the same Texas land to Buyer Two for value. At acquisition, Buyer Two has no actual, constructive or inquiry notice of Buyer One's interest. Which buyer does Section 13.001 protect against the earlier unrecorded conveyance?
A.Buyer Two, as a purchaser for value without notice
B.Buyer One, regardless of notice
C.Buyer Two, only if Buyer One approves the sale
D.Neither, because the second deed cancels both transfers
Check answer and explanation
Correct answer: A. Buyer Two, as a purchaser for value without notice
Section 13.001 protects a subsequent purchaser for value without notice against an earlier unrecorded conveyance. Texas uses a notice rule, not a requirement that this buyer win a race to record. Buyer Two should still record to protect against later transactions. Buyer One's deed remains binding between Buyer One and the seller.
Why the other choices miss:
B. Buyer One, regardless of notice: The earlier unrecorded deed binds its parties but can lose protection against the stated purchaser for value without notice.
C. Buyer Two, only if Buyer One approves the sale: The statutory protection does not depend on Buyer One approving the second transaction. The relevant facts are value and lack of notice.
D. Neither, because the second deed cancels both transfers: The second deed does not automatically cancel both transfers. The question asks which purchaser is protected against the unrecorded conveyance.
Watch for this: Notice includes more than being told. Facts calling for inquiry can defeat a claimed lack of notice.
Rule: Texas Property Code 13.001(a)-(b); Madison v. Gordon, 39 S.W.3d 604 (Tex. 2001)
An otherwise valid ordinary Texas deed is signed, legally delivered and accepted. It has no acknowledgment, proper jurat or other lawful proof, and no special recording exception applies. Which distinction matters?
A.Recording is necessary for delivery
B.Validity and recordability are separate
C.An unrecorded deed gives actual notice
D.Delivery waives all recording formalities
Check answer and explanation
Correct answer: B. Validity and recordability are separate
Property Code 5.021 addresses a written, signed and delivered conveyance. Section 12.001 separately governs recording. Subsection (b) adds requirements for instruments conveying real property, including the applicable execution and certification formalities and photo identification when presented in person. This question is not a complete filing checklist.
Why the other choices miss:
A. Recording is necessary for delivery: Legal delivery concerns the intended transfer. Recording is a separate public-record process and is not necessary to establish the supplied delivery.
C. An unrecorded deed gives actual notice: An unrecorded deed does not automatically establish another person's actual knowledge. Actual notice depends on the person's knowledge.
D. Delivery waives all recording formalities: Delivery does not waive the county's recording requirements. An effective transfer and an eligible recording are separate issues.
Watch for this: A notary-only shortcut misses the statute's alternative formalities; recording and delivery are still different acts.
After buying a Texas home, an insured owner learns that an unknown forged deed from before the purchase threatens title. Which policy is designed to respond to the owner's covered loss from this kind of title problem?
A.Broker's professional liability policy
B.Lender's title policy
C.Homeowners insurance
D.Owner's title insurance policy
Check answer and explanation
Correct answer: D. Owner's title insurance policy
TDI identifies forgery in an earlier deed as an example of a title risk an owner's policy can cover. The current T-1R form describes covered risks and limits through exclusions, Schedule B exceptions, conditions and the amount of insurance. Read the issued policy; a short fact pattern cannot guarantee that a particular claim will be paid.
Why the other choices miss:
A. Broker's professional liability policy: Professional liability concerns covered brokerage errors, not the owner's title coverage for this earlier forged deed.
B. Lender's title policy: The lender's title policy protects the lender's interest. It does not replace the owner's policy for the owner's investment.
C. Homeowners insurance: Homeowners insurance addresses covered property and liability risks. The question describes a defect in ownership, not physical damage.
Watch for this: The lender's policy protects the lender's interest, not the owner's investment as a substitute for an owner's policy.
Rule: TDI residential owner's title policy, Form T-1R; effective November 1, 2024
Do not turn a study rule into a drafting shortcut.
Texas survivorship, recordability and purchaser-protection rules solve different problems. An agent should refer questions about drafting a deed, disputed title or the legal effect of an instrument to the client's attorney.
The official topic has 9 scored items. The counts below describe our 20-question sample, not a promise of which questions you will see. The Texas bonus examples are excluded.
Ownership & Title: official allocation and free practice coverage
National subtopic
Exam items
Our questions
Ownership, estates, rights, and interests
5
10
Deed, title, transfer of title, and recording of title
4
10
A sample is not complete coverage of every possible question. See Pearson VUE's Salesperson outline, section II. Sources beside each answer explain the underlying principle. Texas-specific rules and examples link to their own authority.
Ask three questions: What interest does the person hold? What act transfers it? Who has notice? A deed, a title policy and a public record have different jobs, even when they concern the same property.
Watch for the fact that changes the answer. A fixed six-month lease is an estate for years even if rent is paid monthly. An automatic return of ownership differs from a right to reclaim it. For notice and survivorship questions, check the jurisdiction before applying the general model.
Choose what to study next.
Start with the lesson behind a missed question, then try another problem without notes.
How many ownership and title questions are on the exam?
The Salesperson National outline assigns nine scored items: five to ownership, estates, rights and interests, and four to deeds, title transfer and recording. This free quiz has 20 National questions. Its four Texas examples are extra practice, not additional items in the official allocation.
Are these actual Pearson VUE questions?
No. These are original practice questions using hypothetical facts. The rules and explanations have linked sources, but the questions are not reproduced from Pearson VUE's live exam. They have not been calibrated to its difficulty and do not cover every skill in the outline. Your score describes this set, not your likelihood of passing.
Does recording make a deed valid?
Not by itself. Execution, legal delivery and acceptance concern the transfer between the parties. Proper recording concerns public notice and protection against competing claims. Recording an invalid deed does not cure the defect. State rules determine what can be recorded and who qualifies for priority protection.
Does joint ownership create survivorship in Texas?
Not on its own. Estates Code 111.001 requires a written survivorship agreement and says it cannot be inferred merely from joint ownership. Agreements between spouses about community property are governed separately by Chapter 112. The traditional National joint-tenancy model is not a Texas drafting checklist.
Are a general warranty deed and title insurance interchangeable?
No. The deed conveys an interest and may include promises by the grantor. A title policy is the insurer's separate contract covering specified risks, subject to its terms. One does not replace the other, and neither promises that every possible dispute or physical property defect is covered.
Is a six-month lease an estate for years?
Yes, if it has a fixed beginning and ending date. The name does not require a term of at least one year. Monthly rent payments describe the payment schedule, not the duration of the estate. Check renewal and holdover facts separately.
How do remainder, reversion and possibility of reverter differ?
A remainder gives another person a future interest after the natural end of a prior estate, such as a life estate created by the same deed. A reversion is the future interest retained by the grantor. A possibility of reverter follows a fee simple determinable and becomes possessory when its valid ending condition occurs. Identify the present estate and who holds the future interest before choosing a term.
Can I continue in the app after this free quiz?
Yes. Choose the browser or mobile app and sign in to save practice completed there. Selected activities are free; full access is paid. This topic-quiz score cannot yet be saved to your account. Note your weak topics before leaving; every question on this page remains free to read.
Sources and review notes
Last reviewed: . Pearson VUE supplies the topic allocation, not these questions. Cornell Law explains general doctrines. California DRE references support general concepts only, not California rules applied to Texas. Texas statutes, Supreme Court opinions and TDI materials support the specified state applications. All question scenarios are hypothetical, not reported transactions. This page is exam preparation, not advice for a transaction.
Use the source beside an answer to check the specific rule. Cornell Law's Wex entries explain general legal concepts; they are not Texas statutes or Pearson VUE answer keys.
