Before you read
Test yourself first: 5 questions
Question 1 of 5
A title search reveals a gap in the chain of title where ownership cannot be traced for a period. This is referred to as a:
Answer: A. A cloud on the title is any claim, defect, or unresolved gap in the chain that may impair the owner's title until it is cleared, often by a quitclaim deed or suit to quiet title.
Question 2 of 5
A chain of title is best described as:
Answer: A. The chain of title is the recorded history of successive conveyances and ownership of a parcel, traced through the public records to verify clear ownership.
Question 3 of 5
In a contract for deed (land contract), title:
Answer: A. In a land contract the seller retains legal title and the buyer takes possession/equitable title, receiving the deed only after paying the agreed amount.
Question 4 of 5
Once a buyer and seller sign the purchase contract, the buyer holds:
Answer: A. Signing gives the buyer equitable title; legal title transfers by deed at closing.
Question 5 of 5
A buyer signs a purchase agreement with a 10-day inspection contingency. During the period the inspection reveals serious defects and the buyer properly cancels. The buyer is generally entitled to:
Answer: B. Timely, proper cancellation under a valid inspection contingency is not a breach, so the buyer is normally entitled to a refund of the earnest money.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
The title company searches public records to build an ABSTRACT (condensed history) and issues a commitment listing requirements and exceptions. A CLOUD on title (old unreleased mortgage, misspelled grantee, missing heir's signature) is cured by obtaining releases, corrective deeds, or a quiet-title action. Recording gives CONSTRUCTIVE notice to the world; possession gives INQUIRY notice. Unmarketable title lets the buyer exit — but minor easements listed as standard exceptions usually don't qualify.
Marketable Title, Title Search & Chain of Title: FAQs
Is Marketable Title, Title Search & Chain of Title on the real estate exam?
Yes. Contracts & Transfer of Title is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
