California Real Estate Practice Exam

Abe owned two parcels of land, "A" and "B." Abe sold lot "A" to Bob who, before escrow closed, had the escrow officer change the deed to read lot "B." Escrow closed, and documents were recorded. Bob then sold lot "B" to Chuck, who recorded his deed. Subsequently, Abe sold "B" to Daren, who recorded his deed. Who is the owner of lot "B"?

1. Abe

2. Bob

3. Chuck

4. Daren

The correct answer is: Abe

Abe is the owner of lot "B" even though the deed was mistakenly changed to lot "B" during the initial transaction with Bob. This is because the mistake made by the escrow officer and Bob in changing the deed did not transfer ownership of lot "B" to Bob or subsequently to Chuck. Legal ownership is not determined by simple mistakes in paperwork or recording errors. In this scenario, Chuck and Daren purchased the property in good faith, without knowledge of the mistake made in the initial transaction. As a result, ownership reverts back to the original owner, Abe.