- Official section
- National IX: Transfer of Title
- Broker weight
- 6% of the national broker portion
- Expected scored items
- Transfer of Title accounts for about 6 of 100 items
Transfer of Title topic guide
Deed types and effective transfer
A deed question usually tests three separate issues: what interest the grantor can convey, what promises the deed makes about title, and whether the deed became effective. Read those issues in that order before thinking about recording.
What does this exam area cover?
Short answer: Know general warranty, special warranty, bargain and sale, quitclaim, trustee's, executor's, administrator's, sheriff's, and tax deeds. Identify grantor authority and the estate conveyed, then read the covenants. Check a competent grantor, identifiable grantee, operative granting words, sufficient legal description, execution, any required spousal or entity act, acknowledgment for recording, delivery with present intent, and acceptance. Recording gives public notice and affects priority, but it does not replace delivery.
The PSI outline tests national deed principles. Illinois supplies statutory deed forms, covenant effects, acknowledgment and recording rules, electronic-recording provisions, and county submission requirements. Deed preparation, title interpretation, estate authority, and contested delivery are legal matters for an Illinois attorney or title professional.
Practice the topic in Pass Illinois
From concept to decision
Drill this topic, then review the explanation
Pass Illinois gives you original national and Illinois questions, topic-by-topic study, clear explanations, timed practice, flashcards, progress tracking, and Math Coach. Start free, find the weak distinction, and focus the next session there.
What is on the official outline?
- Topic
- General warranty deed
- What to know
- Grantor, grantee, fee simple, broad covenant, seisin, right to convey, encumbrance, quiet enjoyment, warranty, further assurances, entire title history, defense, damages, exception, reservation, and Illinois statutory language
- Best exam move
- Choose this deed when the question describes the broadest title covenants, including periods before the grantor owned.
- Topic
- Special warranty deed
- What to know
- Limited covenant, grantor's ownership period, by grantor, through grantor, under grantor, grantor-created encumbrance, prior defect, commercial transaction, estate, entity, bargain, exception, and negotiated language
- Best exam move
- Limit the promise to title problems connected to that grantor rather than the whole chain.
- Topic
- Bargain and sale deed
- What to know
- Conveyance, implied ownership, consideration, no broad express warranty, statutory wording, grant bargain sell, grantor acts, limited covenant, local usage, estate sale, foreclosure context, and title investigation
- Best exam move
- Do not assign covenants from the deed label alone; read the wording and governing statute.
- Topic
- Quitclaim deed
- What to know
- Release, then-existing interest, legal interest, equitable interest, no warranty, uncertain interest, divorce, boundary cure, name change, entity change, title correction, after-acquired title, additional words, and fraud risk
- Best exam move
- A quitclaim deed changes who holds the grantor's interest, not whether that interest is good.
- Topic
- Fiduciary and representative deeds
- What to know
- Trustee, executor, administrator, personal representative, guardian, conservator, court officer, trust agreement, will, letters of office, probate order, power, beneficiary, estate, statutory authority, limited warranty, no personal covenant, and title requirement
- Best exam move
- Verify the office, source of power, required approval, capacity, and exact interest held by the estate or trust.
- Topic
- Sheriff's, judicial, and tax deeds
- What to know
- Foreclosure, judicial sale, confirmation, sheriff, redemption, court order, tax sale, tax buyer, redemption period, tax deed proceeding, notice, statutory compliance, former owner, lien effect, possession, no ordinary seller covenant, and title insurance
- Best exam move
- The officer conveys only the interest and authority created by the completed statutory or judicial process.
- Topic
- Competent grantor and authorized signer
- What to know
- Legal capacity, identity, ownership, spouse, co-owner, entity, corporation, limited liability company, partnership, trust, estate, power of attorney, fiduciary, court authority, signer title, resolution, good standing, signature, and acknowledgment
- Best exam move
- Ownership and signing authority are separate questions, and every required interest holder must be addressed.
- Topic
- Identifiable grantee and vesting
- What to know
- Natural person, entity, trust arrangement, estate, exact legal name, address, capacity to receive, tenancy in common, joint tenancy, tenancy by entirety, ownership share, survivorship language, marital status, tax-bill address, and acceptance
- Best exam move
- An error in grantee name or vesting can change ownership rights long after closing.
- Topic
- Granting clause, consideration, and estate
- What to know
- Convey, grant, bargain, sell, warrant, quitclaim, present transfer, consideration recital, nominal consideration, gift, valuable consideration, habendum, fee simple, life estate, easement, reservation, exception, mineral right, and after-acquired title
- Best exam move
- Read what is conveyed and what is kept rather than assuming the entire fee passes.
- Topic
- Legal description
- What to know
- Lot and block, metes and bounds, rectangular survey, recorded plat, parcel number, street address, monument, point of beginning, county, state, ambiguity, omitted parcel, scrivener error, attached exhibit, survey, and corrective deed
- Best exam move
- A street address or tax parcel number helps identify property but does not automatically replace a sufficient legal description.
- Topic
- Execution and acknowledgment
- What to know
- Grantor signature, representative capacity, printed name, witness where required, notary, personal appearance, identity verification, free and voluntary act, seal, certificate, electronic signature, remote notarization where lawful, recordability, evidence, forgery, and correction
- Best exam move
- Execution creates the instrument; acknowledgment authenticates the act for recording and proof purposes.
- Topic
- Delivery and acceptance
- What to know
- Present intent, effective now, manual delivery, constructive delivery, escrow delivery, condition, revocable instruction, relinquished control, safekeeping, future event, death, presumption, acceptance, benefit, rejection, return, and evidence
- Best exam move
- Ask whether the grantor intended title to pass and surrendered the right to recall the deed.
- Topic
- Recording, notice, and priority
- What to know
- County recorder, grantor index, grantee index, filing time, instrument number, public record, actual notice, constructive notice, inquiry notice, bona fide purchaser, value, without notice, creditor, priority, race-notice principle, chain of title, wild deed, re-recording, and electronic record
- Best exam move
- Recording does not cure a forged or undelivered deed, but it can determine which competing valid interest prevails.
Which distinctions produce the most mistakes?
- Terms
- General warranty vs. special warranty
- Difference
- General warranty reaches title defects across the chain. Special warranty limits covenants to claims connected to the grantor's ownership or conduct.
- Question cue
- Broad history versus by, through, or under this grantor.
- Terms
- Warranty deed vs. quitclaim deed
- Difference
- A warranty deed conveys the described estate with stated title covenants. A quitclaim deed conveys only the interest the grantor then has without those covenants.
- Question cue
- Title promise versus no title promise.
- Terms
- Quitclaim deed vs. defective deed
- Difference
- A quitclaim deed is a valid deed type with limited assurances. A defective deed fails a requirement such as authority, description, execution, delivery, or acceptance.
- Question cue
- Limited protection does not mean invalid form.
- Terms
- Grantor title vs. grantor authority
- Difference
- Title asks what interest is owned. Authority asks whether the signer can bind the owner, trust, estate, entity, or other interest holder.
- Question cue
- What is owned versus who may sign.
- Terms
- Execution vs. delivery
- Difference
- Execution is proper signing of the deed. Delivery is the later or simultaneous act showing present intent to make the transfer operative.
- Question cue
- Instrument created versus transfer activated.
- Terms
- Acknowledgment vs. acceptance
- Difference
- Acknowledgment is the grantor's formal confirmation before an authorized officer. Acceptance is the grantee's agreement to receive the conveyance.
- Question cue
- Authenticating grantor act versus receiving title.
- Terms
- Delivery vs. possession of paper
- Difference
- Delivery depends on intent and surrendered control. A person can physically possess a deed that was never delivered as an operative conveyance.
- Question cue
- Legal transfer intent versus custody.
- Terms
- Delivery vs. recording
- Difference
- Delivery with acceptance makes the deed effective between the parties. Recording gives public notice and affects priority against later interests.
- Question cue
- Title passes versus world receives notice.
- Terms
- Voluntary vs. involuntary alienation
- Difference
- Voluntary alienation comes from the owner's intentional act. Involuntary alienation occurs through law, court process, government power, creditor action, or adverse possession.
- Question cue
- Owner chooses transfer versus transfer imposed by legal process.
The DEEDS method for deed questions
- Determine the transferor. Identify the record owner, proposed grantor, capacity, co-owners, spouse, entity, fiduciary, power of attorney, and source of signing authority.
- Establish the interest. Read the legal description, estate, easements, reservations, exceptions, ownership share, and whether the grantor can convey that interest.
- Examine the covenants. Classify the deed by its actual words and decide whether promises are broad, grantor-limited, or absent.
- Deliver and accept. Find present intent, relinquishment of control, any escrow condition, the grantee's acceptance, and evidence of timing.
- Secure notice. Confirm acknowledgment and submission requirements, record promptly in the correct county, and examine later purchasers, creditors, and competing notice.
- Deed
- General warranty
- Typical title assurance
- Broad covenants across title history
- Best question
- Is the grantor promising against prior defects?
- Deed
- Special warranty
- Typical title assurance
- Covenants limited to this grantor
- Best question
- Did the claim arise by, through, or under grantor?
- Deed
- Bargain and sale
- Typical title assurance
- Depends on wording and statute
- Best question
- What covenant does the actual language create?
- Deed
- Quitclaim
- Typical title assurance
- No warranty of title
- Best question
- What interest did grantor actually have?
- Deed
- Trustee or personal representative
- Typical title assurance
- Authority-based, often limited
- Best question
- What instrument or order authorizes the signer?
- Deed
- Sheriff or judicial
- Typical title assurance
- Interest from completed court process
- Best question
- Was sale and confirmation process completed?
- Deed
- Tax deed
- Typical title assurance
- Interest from statutory tax process
- Best question
- Were notice and redemption requirements satisfied?
- Deed
- Corrective deed
- Typical title assurance
- Repairs stated instrument error
- Best question
- Who must sign and what original fact changes?
How do the rules work in scenarios?
Quitclaim cannot create ownership
Scenario: A person who has no interest signs and records a quitclaim deed to a buyer. The buyer assumes recording proves ownership.
- A quitclaim transfers only the grantor's then-existing interest, if any.
- Recording gives notice of the document but does not manufacture title or cure lack of ownership.
Answer: The buyer received no greater interest than the grantor held and needs title counsel before relying on the recorded deed.
A signed deed may remain undelivered
Scenario: An owner signs a deed naming a child, locks it in a desk, and says it may be used only if the owner never asks for it back.
- Signing alone does not establish present transfer intent.
- The owner retained control and a right to recall the document, which weighs against effective delivery.
Answer: The facts do not show completed delivery. Estate-planning and deed consequences should be handled by an Illinois attorney.
Special warranty does not cover every old defect
Scenario: A special warranty deed is delivered. A valid easement created by a remote prior owner later appears.
- The easement predates the grantor and was not created or suffered by that grantor on the stated facts.
- A special warranty covenant is narrower than a general warranty covenant.
Answer: The claim may fall outside the grantor-limited deed covenant, though title insurance, contract rights, and the policy exceptions require separate review.
Recording protects the later purchaser question
Scenario: A valid deed is delivered but not recorded. The grantor later conveys to a purchaser who pays value, lacks notice, and records.
- The first deed can operate between its parties upon delivery and acceptance.
- Illinois recording law protects qualifying later purchasers against prior unrecorded interests under its notice and recording framework.
Answer: The first grantee's failure to record creates a serious priority risk, so the competing interests require immediate title and legal analysis.
What are the common exam traps?
- Trap
- The deed with the strongest warranty transfers the largest estate.
- Correction
- Covenant strength and estate size are separate. A quitclaim can convey fee simple, while a warranty deed can convey a smaller stated interest.
- Trap
- A quitclaim deed is invalid because it has no warranties.
- Correction
- Quitclaim is a recognized deed form that validly conveys the grantor's existing interest when all transfer requirements are met.
- Trap
- A representative's title proves authority.
- Correction
- Trustees, personal representatives, officers, agents, and court officials need actual authority under the controlling instrument, statute, resolution, or order.
- Trap
- A parcel number always serves as the legal description.
- Correction
- A tax identifier is useful, but the deed needs a legally sufficient property description.
- Trap
- Consideration must equal market value for a deed to work.
- Correction
- A deed may be part of a sale or gift. The consideration recital, transfer-tax treatment, creditor rights, and gift consequences are separate issues.
- Trap
- Notarization proves the grantor owned the property.
- Correction
- Acknowledgment authenticates execution for recording and proof; it is not a title search or ownership guarantee.
- Trap
- Physical possession of a deed always proves delivery.
- Correction
- The controlling issue is present intent and relinquished control, not who holds the paper at one moment.
- Trap
- Recording cures an invalid signature or forgery.
- Correction
- The recorder's acceptance does not create authority, genuine execution, delivery, or title that the instrument lacks.
- Trap
- The purchase contract transfers legal title.
- Correction
- The contract creates transfer duties and equitable rights; the deed is the closing conveyance of legal title.
- Trap
- A broker should draft or repair a deed to keep closing on schedule.
- Correction
- Deed preparation and legal correction require an attorney or authorized title professional, not improvised brokerage drafting.
Can you answer these original practice questions?
These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.
1. Which deed gives the broadest typical title covenants?
- General warranty deed
- Quitclaim deed
- Tax deed
- Sheriff's deed
Show answer and explanation
Answer: A
A general warranty deed typically protects against covered title defects across the chain, not only the grantor's period.
2. What does an Illinois statutory quitclaim deed ordinarily convey?
- Guaranteed fee-simple title
- The grantor's then-existing interest, if any
- Only future-acquired title
- A lender's insured interest
Show answer and explanation
Answer: B
Quitclaim conveys the interest the grantor currently holds without warranty covenants.
3. A grantor signs a deed but keeps an unrestricted right to recall it. Which element is most doubtful?
- Legal description
- Delivery
- Grantee identity
- Recording fee
Show answer and explanation
Answer: B
Retained control and lack of present irrevocable transfer intent weigh against effective delivery.
4. What is the main purpose of recording a delivered deed?
- Create the grantor's ownership
- Provide public notice and protect priority
- Replace the legal description
- Guarantee marketable title
Show answer and explanation
Answer: B
Recording places the instrument in the public chain and affects later purchasers and creditors.
5. A trustee signs a deed. What should the title review verify first?
- The trustee's preferred price
- The trust's ownership and the trustee's authority
- The broker's commission split
- The property's paint color
Show answer and explanation
Answer: B
A fiduciary deed depends on the trust holding the interest and the signer having authority to convey it.
How should you study this area?
- Session
- 1. Compare deed promises
- Focus
- General warranty, special warranty, bargain and sale, quitclaim, covenant, exception, and after-acquired title
- Proof you are ready
- Classify twelve covenant scenarios without relying only on labels.
- Session
- 2. Verify grantor and grantee
- Focus
- Ownership, capacity, spouse, co-owner, entity, trust, estate, power of attorney, fiduciary, vesting, and acceptance
- Proof you are ready
- Identify missing authority in ten signing files.
- Session
- 3. Read the conveyance
- Focus
- Granting clause, estate, legal description, consideration, reservation, exception, easement, mineral, and share
- Proof you are ready
- State exactly what passes and what remains in eight examples.
- Session
- 4. Complete execution
- Focus
- Signature, capacity, printed name, acknowledgment, notary, electronic record, forgery, correction, and recordability
- Proof you are ready
- Audit six deeds for execution and acknowledgment defects.
- Session
- 5. Master delivery and recording
- Focus
- Present intent, control, escrow, condition, acceptance, filing, notice, later purchaser, creditor, priority, and chain
- Proof you are ready
- Explain why delivery and recording answer different questions.
- Session
- 6. Apply DEEDS
- Focus
- Transferor, interest, covenants, delivery, acceptance, acknowledgment, notice, priority, and professional referral
- Proof you are ready
- Score at least 90% and explain every answer in one sentence.
Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.
Deed Types and Effective Transfer FAQ
What is a deed?
A deed is a written instrument that conveys the grantor's real-property interest to a grantee. A valid deed must identify the parties and property, express an intent to convey, be properly executed, and become effective through delivery and acceptance under governing law.
What is the difference between a general and special warranty deed?
A general warranty deed gives broad title covenants that can reach defects arising before the grantor owned the property. A special warranty deed limits its covenants to defects caused or suffered by, or claims through, that grantor. Always read the actual granting language and covenants because labels and statutory effects matter.
What does an Illinois quitclaim deed convey?
A deed in the Illinois statutory quitclaim form conveys the grantor's then-existing legal and equitable interests in the described property without warranty covenants. It does not extend to after-acquired title unless words expressing that intention are added.
Does a quitclaim deed prove that the grantor owns the property?
No. It transfers whatever interest the grantor has, if any. A grantee still needs title investigation because the grantor may own less than expected or nothing at all.
What makes delivery of a deed effective?
Delivery requires conduct showing the grantor's present intent for the deed to operate as a transfer, along with relinquishment of control consistent with that intent. Handing over a paper for safekeeping or subject to a condition controlled by the grantor may not be effective delivery.
Must the grantee accept the deed?
Yes. A conveyance is not forced on an unwilling grantee. Acceptance can be express or inferred from conduct and is commonly presumed when the transfer benefits the grantee, but the facts and governing law control.
Must an Illinois deed be notarized to be valid?
Illinois requires acknowledgment for instruments made for recording, but the Conveyances Act states that failure to comply with the acknowledgment provision does not itself invalidate the instrument. A missing or defective acknowledgment can still create recordability, proof, priority, and closing problems.
Does recording make a deed valid between grantor and grantee?
Recording primarily provides public notice and protects priority against later claimants. Delivery and acceptance are the central transfer events between the parties. An unrecorded deed can operate between them but remain vulnerable under Illinois recording law.
What is the difference between voluntary and involuntary alienation?
Voluntary alienation results from the owner's intentional transfer, such as a sale or gift. Involuntary alienation results through law or process, such as foreclosure, tax sale, condemnation, adverse possession, or a court-ordered transfer.
Are these deed questions copied from PSI?
No. Every practice question is original and aligned to the published exam outline and cited Illinois sources.
Primary sources
- PSI Illinois Candidate Information Booklet dated June 24, 2026
- Illinois Conveyances Act
- Illinois Conveyances Act Section 9, statutory warranty deed form
- Illinois Conveyances Act Section 10, statutory quitclaim deed form
- Illinois Conveyances Act Section 35c, execution and acknowledgment
- Illinois Uniform Real Property Electronic Recording Act
- Illinois Counties Code, review of suspected fraudulent recorded instruments
The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.