True or False: Estoppel by deed may pass automatically with a quitclaim deed.

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Study for the Real Estate Transactions Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare to excel in your exam!

Estoppel by deed refers to a legal principle preventing a party from denying the truth of a statement made in a deed or from asserting a claim inconsistent with that deed. The concept is tied to the guarantees related to the title being conveyed.

When a quitclaim deed is used, it transfers whatever interest the grantor has in the property but does not provide any warranty or guarantee concerning that interest. Therefore, it does not generate any estoppel by deed effect because the nature of a quitclaim is to relinquish any claim a grantor may have, without implying ownership or any right to the property that the deed might convey.

Consequently, estoppel by deed does not automatically apply when using a quitclaim deed. Instead, it is typically associated with deeds that include warranties of title. This understanding aligns with the assertion that the answer is false, as the characteristics of a quitclaim deed do not support the automatic passage of estoppel by deed.

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