PSI Virginia Real Estate Practice Exam

When does title pass from a deed?

1. At the closing of the property

2. When delivered and accepted

3. Upon recording in public records

4. After payment is made

The correct answer is: When delivered and accepted

The passing of title from a deed occurs when the deed is delivered and accepted by the grantee. This means that the transfer of ownership is not strictly tied to the closing of the property or the payment itself; instead, it is the act of delivering the deed with the intention of conveying title that completes the transfer. The recipient must accept the deed for the transfer to be valid. While closing is a significant event in the transaction process, it is not the moment the title actually passes. Recording the deed in public records serves to provide public notice of ownership and help protect the grantee's interests but does not itself transfer title. Similarly, while payment for the property is an important aspect of real estate transactions, the deed's delivery and acceptance is what legally effects the transfer of title.