Wisconsin Real Estate Sales Practice Exam

When a property title is transferred, what happens to the existing deed conditions?

1. The conditions are terminated

2. The conditions stay in place

3. The conditions are renegotiated

4. The conditions are modified by the buyer

The correct answer is: The conditions stay in place

When a property title is transferred, the existing deed conditions remain in place. This means that any restrictions or conditions that were established in the original deed continue to apply to the property and bind the new owner. These conditions are typically recorded in the public record and are enforceable against future owners. This principle is critical for understanding property rights and obligations. For example, if a property was conveyed with conditions such as maintaining its use as a single-family residence or prohibiting certain activities, the new owner must adhere to these stipulations. They cannot alter or terminate the conditions simply by taking ownership of the property. The idea behind this is to protect the interests established when the deed was created, ensuring that future owners are aware of and comply with the requirements set forth in the original conveyance. Thus, recognizing that the conditions stay in place helps maintain the legal framework governing property use and ownership rights.