National Real Estate Exam (PSI)Transfer of TitleEasy
For a deed to transfer legal title from grantor to grantee, which two actions must both occur, beyond simply signing the document?
- AAppraisal and survey
- BRecording and payment of transfer tax
- CDelivery and acceptance
- DNotarization and witnessing
Show answer & explanationAnswer & explanation
Correct answer: C. Delivery and acceptance
A deed does not transfer title merely by being signed; the grantor must deliver it with intent to convey, and the grantee must accept it. Recording and taxes affect priority/legality but are not required for title to pass between the parties.
Why the other options are wrong
- A. Appraisal and survey relate to value and boundaries, not conveyance of title.
- B. Recording protects against later claims but is not required to pass title between grantor and grantee.
- D. Notarization/witnessing aid recordability but don't themselves transfer title.
Delivery and Acceptance
A deed only conveys title when the grantor delivers it with intent to transfer ownership and the grantee accepts it.
- Signing alone does not transfer title
- Delivery must show grantor's intent to give up control
- Acceptance is presumed if the transfer benefits the grantee
Memory trick: 'Deliver and Accept' — a gift isn't given until it's handed over and taken.