National Real Estate Practice Exam

Which of the following deeds is typically used to transfer property upon death?

1. Warranty Deed

2. Quitclaim Deed

3. Special Purpose Deed

4. Transfer on Death Deed

The correct answer is: Transfer on Death Deed

The Transfer on Death Deed is specifically designed to allow an individual to transfer their property to a designated beneficiary upon their death without the property going through probate. This type of deed ensures a straightforward and efficient transfer of ownership, as the beneficiary simply needs to present proof of the owner's death to take title, making it a convenient estate planning tool. In contrast, a Warranty Deed provides a guarantee that the property title is clear of any encumbrances, which is more relevant in sales transactions rather than transferring property after death. A Quitclaim Deed transfers whatever interest the grantor has in the property without any warranties, and usually lacks the estate planning intent involved with the Transfer on Death Deed. A Special Purpose Deed, while covering various specific situations (like a deed in a foreclosure), is not designed specifically for transferring ownership upon death. Therefore, the Transfer on Death Deed is the most appropriate choice for transferring property as part of estate planning after someone passes away.