Affiliate Broker Tennessee (TN PSI) National Practice Exam `

A subject to clause in a deed may address which of the following issues?

1. Legal fees related to the sale

2. An easement across the property

3. The home's interior condition

4. The buyer's financial qualifications

The correct answer is: An easement across the property

A "subject to" clause in a deed typically refers to specific conditions under which the property is conveyed. This can include various issues related to the property itself, particularly encumbrances like easements. An easement allows someone the right to cross or use a portion of the property for a specific purpose, such as access to a neighboring property or utilities. Including an easement in a "subject to" clause clarifies that the buyer is acquiring the property with these existing rights intact, ensuring they are aware of any limitations or obligations that may accompany ownership. While legal fees, the home's interior condition, and the buyer's financial qualifications can be important in real estate transactions, they do not typically form the basis of a "subject to" clause in a deed. Legal fees are usually negotiated outside the deed's language, the condition of the home may be addressed in other documents like inspection reports or disclosures, and a buyer’s financial qualifications relate more to financing arrangements than to the deed itself. Therefore, the most fitting issue for a "subject to" clause is an easement across the property, as it directly pertains to the rights and restrictions associated with the land being conveyed.