Alabama Real Estate Practice Exam

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What is a Deed?

A policy against defects in title
A historical list of ownership
A document effecting transfer of property
A statement of opinion on the title's status

The correct answer is: A document effecting transfer of property

A Deed is a legal document that is used to transfer ownership of property from one person to another. While the other options may also pertain to property titles, they do not accurately describe a Deed. Option A, "a policy against defects in title," refers to title insurance, which is a separate document that provides protection against any potential issues with the property's ownership history. Option B, "a historical list of ownership," is a description of a chain of title, which is a record of previous owners of the property. Option D, "a statement of opinion on the title's status," describes a title opinion, which is a document used by attorneys to assess the validity and accuracy of a property's title. Therefore, option C is the correct answer as it specifically refers to a Deed, which is the legal document that transfers ownership of the property.