What does recording a deed do?

It gives constructive notice, meaning the whole world is legally on notice of the owner's interest.

Who does a lender's title insurance policy protect?

Only the lender. The buyer needs an owner's policy for their own protection.

In a short sale, the lender:

Agrees to accept less than the loan balance

Title passes by deed when the deed is:

Signed by the grantor and delivered to and accepted by the grantee

A seller in Cherry Hill conveys with a standard New Jersey bargain and sale deed with covenant as to grantor's acts. After closing, the buyer finds an unreleased lien placed by an owner 20 years before the seller bought. The deed's covenant:

Does not cover it, because it reaches only the seller's own acts

Makes the seller liable for the lien

Requires the buyer's lender to pay off the lien

A buyer closes on and first occupies a newly built New Jersey home in March 2026. In 2029 a major structural defect appears. Under the state's new home warranty, the defect is:

Covered, because major structural defects are covered for 10 years

Not covered, because coverage ended after 1 year

Not covered, because coverage ended after 2 years

Covered only if the builder agrees

A grantor signs a deed in front of a notary public, who takes the grantor's acknowledgment. The main purpose of the acknowledgment is to:

Make the deed eligible for recording

Guarantee the title is free of liens

Prove the grantee accepted delivery

Owner Smith sells a lot to Buyer A, who never records the deed or takes possession. Smith then sells the same lot to Buyer B, who pays fair value, knows nothing of the first sale, and records right away. In New Jersey, a race-notice state, who generally has the better claim?

Buyer B, a good-faith purchaser who recorded first

Buyer A, because the first deed delivered always wins

Buyer A, because Smith had no title left to convey

Neither buyer, so Smith keeps the lot

A buyer takes out a $300,000 mortgage, and the lender requires a lender's title insurance policy. Over the years the loan is paid down. The lender's policy:

Protects only the lender, with coverage that declines as the loan is paid down

Protects the buyer's equity as well as the lender

Stays at a fixed $300,000 for the life of the loan

Converts to an owner's policy once the loan is paid off

Property taxes in a town are paid in arrears. At closing, the current year's taxes have not been paid yet. On the closing statement, the seller's share of these unpaid taxes is generally:

A debit to the seller and a credit to the buyer

A credit to the seller and a debit to the buyer

A debit to both the seller and the buyer

Left off, because the taxes are not yet due

A title search shows a 1995 deed from Lopez to Chen and a 2010 deed from Patel to the current seller, but no recorded deed from Chen to Patel. This is:

An encroachment on the property

A lis pendens against the seller

A defect cured by recording the seller's deed

A seller conveys a home by special warranty deed. A year later the buyer discovers an unpaid lien that was filed against the previous owner, before the seller bought the home. What protection does the deed give the buyer against this lien?

No protection under the deed, because the lien arose before the seller owned the property

Full protection, because every warranty deed covers the entire chain of title

Protection only if the buyer records the deed within one year

Protection only if the seller had actual knowledge of the lien

Which deed conveys whatever interest the grantor has, if any, without implying that the grantor holds title and without any warranties?

Bargain and sale deed without covenants

Under New Jersey's recording statute, which item must a deed conveying title include before a county recording officer can record it?

The name of the person who prepared the deed

The grantee's signature beneath the grantor's

A wax or embossed seal next to each signature

The name of the listing brokerage

A single-family home in New Jersey sells for $2,400,000 under a 2026 contract, and the deed is first submitted for recording in 2026. Which statement about the graduated percent fee is correct?

The seller owes 2% of $2,400,000

The buyer owes 1% of $2,400,000

The seller owes 2% of the $1,400,000 above $1 million

No graduated fee applies because the RTF already covers sales over $1 million

Which New Jersey seller qualifies for the reduced Realty Transfer Fee schedule?

A 66 year old New Jersey resident selling the two-family house she owns and lives in

A 70 year old Florida resident selling a vacation condo in Cape May

A 64 year old investor selling a six-unit apartment building he owns in Newark

A 30 year old buyer purchasing his first home

Which deed is fully exempt from New Jersey's Realty Transfer Fee under N.J.S.A. 46:15-10?

An executor's deed distributing a deceased owner's house to an heir

A sale from a brother to his sister for $250,000

A sale from a grandmother to her grandson for $300,000

An investor's sale of a two-family house to a first-time buyer

Transfer of title

Q: What kind of deed is used in New Jersey home sales?

Usually a bargain and sale deed with covenant as to grantor's acts. The seller promises only that they did nothing to cloud the title during their ownership.

Q: How long is a new home warranty in New Jersey?

From first owner occupancy or settlement, whichever is sooner: 1 year for materials and workmanship, 2 years for heating, cooling, plumbing and electrical systems, and 10 years for major structural defects.

Deeds, title insurance, recording, closings, foreclosures and short sales.

PSI national outline: 6% of national content5 min read21-question check

Transfer of title in one paragraph

Deeds rank by protection: general warranty, then special warranty, then bargain and sale, then quitclaim. New Jersey commonly uses the bargain and sale deed with covenants against the grantor's acts.

General warranty deed vs NJ bargain and sale deed with covenant

General warranty deed vs NJ bargain and sale deed with covenant
	General warranty deed	Bargain and sale with covenant as to grantor's acts
What the grantor promises	To defend title against claims from any point in the chain of title	Only that the grantor did nothing during their ownership to cloud title
Use in New Jersey	Rare	The standard deed in most home sales
Where the buyer's real protection comes from	The grantor's warranties plus title insurance	Mostly the title search and owner's title policy
Rank in protection	Highest	Below general warranty, above quitclaim

Transfer of title: 4 rules to memorize

General warranty deed protects most.

A quitclaim protects least.

Recording gives constructive notice.

The world is on notice of the owner's interest.

Owner's policy protects the buyer.

The lender's policy protects the lender.

Short sale needs lender approval.

The payoff is less than what is owed.

Transfer of title, explained

Recording gives constructive notice. A title search checks the chain of title, and title insurance protects against hidden defects. Distressed sales include foreclosures, deeds in lieu and short sales.

A valid deed needs a competent grantor, an identified grantee, words of conveyance, a legal description and the grantor's signature, and it must be delivered and accepted. In New Jersey the standard deed in home sales is the bargain and sale deed with covenant as to grantor's acts: the seller promises only that they did nothing during their ownership to cloud the title. That promise does not reach back before the seller owned the property, so the title search and the owner's title policy carry the rest of the protection.

Title insurance starts with a title search of the chain of title. Marketable title is title a reasonable buyer would accept, free of serious defects, and insurable title is title a company will insure, sometimes with listed exceptions. Common problems, like an old mortgage never released or a missing heir, are cured with a payoff and release, a quitclaim deed from the person with the claim, or a quiet title action.

Know the special processes. New Jersey foreclosures are judicial: the lender sues and the property is sold at a sheriff's sale, and court rules give a 10-day period after the sale to object before the sheriff delivers the deed. In a probate sale, the executor or administrator signs the deed for the estate. For new construction, the New Jersey new home warranty runs from first owner occupancy or settlement, whichever occurs sooner: 1 year for materials and workmanship, 2 years for heating, cooling, plumbing and electrical systems, and 10 years for major structural defects.

How the exam tries to trip you up

Recording does not transfer title. Delivery and acceptance during the grantor's lifetime do. Recording protects the buyer by giving constructive notice.
Only the grantor has to sign the deed. If an answer says the grantee must sign for the deed to be valid, it is wrong.
The covenant in a New Jersey bargain and sale deed covers only the seller's own acts. If a question describes a lien left by an earlier owner, the buyer's protection is the owner's title policy, not the deed.
The lender's policy protects the lender and is usually required by the lender. The owner's policy is optional but is the only one that protects the buyer.

Transfer of title practice questions

1 of 21

Which deed gives the buyer the most protection?

Transfer of title flashcards

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Keyboard: Space to flip · ← → to move · 1 still learning · 2 got it

All 7 terms at a glanceShow

Quitclaim deed: Transfers whatever interest the grantor has, with no warranties.
Constructive notice: Legal notice given by recording in public records.
Short sale: Sale for less than the loan balance, with lender approval.
Covenant as to grantor's acts: Promise in a NJ bargain and sale deed that the seller did nothing during their ownership to encumber title.
Chain of title: The recorded history of ownership transfers for a property, checked in a title search.
Marketable title: Title free of serious defects that a reasonable buyer would accept.
Deed in lieu of foreclosure: A borrower deeds the property to the lender to avoid a foreclosure suit.

Transfer of title: common questions

A general warranty deed, which includes full covenants to defend title against all claims.

Sources and further reading

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General warranty deed vs NJ bargain and sale deed with covenant

General warranty deed vs NJ bargain and sale deed with covenant
	General warranty deed	Bargain and sale with covenant as to grantor's acts
What the grantor promises	To defend title against claims from any point in the chain of title	Only that the grantor did nothing during their ownership to cloud title
Use in New Jersey	Rare	The standard deed in most home sales
Where the buyer's real protection comes from	The grantor's warranties plus title insurance	Mostly the title search and owner's title policy
Rank in protection	Highest	Below general warranty, above quitclaim

Transfer of title, explained

How the exam tries to trip you up

Recording does not transfer title. Delivery and acceptance during the grantor's lifetime do. Recording protects the buyer by giving constructive notice.

Only the grantor has to sign the deed. If an answer says the grantee must sign for the deed to be valid, it is wrong.

The covenant in a New Jersey bargain and sale deed covers only the seller's own acts. If a question describes a lien left by an earlier owner, the buyer's protection is the owner's title policy, not the deed.

The lender's policy protects the lender and is usually required by the lender. The owner's policy is optional but is the only one that protects the buyer.

Transfer of title flashcards

0 of 7 known

Keyboard: Space to flip · ← → to move · 1 still learning · 2 got it

All 7 terms at a glanceShow

Quitclaim deed: Transfers whatever interest the grantor has, with no warranties.
Constructive notice: Legal notice given by recording in public records.
Short sale: Sale for less than the loan balance, with lender approval.
Covenant as to grantor's acts: Promise in a NJ bargain and sale deed that the seller did nothing during their ownership to encumber title.
Chain of title: The recorded history of ownership transfers for a property, checked in a title search.
Marketable title: Title free of serious defects that a reasonable buyer would accept.
Deed in lieu of foreclosure: A borrower deeds the property to the lender to avoid a foreclosure suit.

Transfer of title: common questions

A general warranty deed, which includes full covenants to defend title against all claims.

General warranty deed vs NJ bargain and sale deed with covenant

Transfer of title: 4 rules to memorize

Transfer of title, explained

How the exam tries to trip you up

Transfer of title practice questions

Transfer of title flashcards

Transfer of title: common questions

Which deed gives a buyer the most protection?

What does recording a deed do?

Who does a lender's title insurance policy protect?

What kind of deed is used in New Jersey home sales?

How long is a new home warranty in New Jersey?

Sources and further reading

General warranty deed vs NJ bargain and sale deed with covenant

Transfer of title: 4 rules to memorize

Transfer of title, explained

How the exam tries to trip you up

Transfer of title practice questions

Transfer of title flashcards

Transfer of title: common questions

Which deed gives a buyer the most protection?

What does recording a deed do?

Who does a lender's title insurance policy protect?

What kind of deed is used in New Jersey home sales?

How long is a new home warranty in New Jersey?

Sources and further reading