If the deed does not state what form of estate is being transferred, it is assumed that the property is being transferred in which form of title?

Prepare for the Maryland Title Insurance Test with targeted multiple-choice questions, including hints and explanations for each to help you succeed. Get ready to ace your exam!

When a deed does not specify the type of estate being transferred, it is assumed to convey a fee simple absolute. This is the most complete and unrestricted form of ownership in real property, providing the grantee with the maximum possible rights. The fee simple absolute allows the owner to use the property freely, sell it, lease it, or leave it to heirs without any limitations on the ownership duration. The presumption in favor of fee simple absolute reflects the legal standard that favors granting the highest level of rights unless the deed explicitly indicates otherwise.

The other choices represent different types of estates with various limitations. A life estate provides ownership for the duration of a person's life but does not allow for full transferability or perpetuity beyond that life. A leasehold estate grants possession for a specified period under lease terms, generally lacking the ownership rights associated with fee simple. An equitable estate involves rights to a property that might not equate to legal ownership, often arising from a trust or similar arrangements. These distinctions clarify why, in the absence of any specific indication in the deed, fee simple absolute is the default assumption in property transactions.

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