What legal document assures the buyer that they have ownership rights free of liens or claims?

What legal document assures the buyer that they have ownership rights free of liens or claims?

• A. Warranty Deed
• B. Title Deed
• C. Affidavit of Title
• D. Trust Deed

Answer: (A)

A warranty deed is the legal document that assures the buyer they have ownership rights to a property free from liens or claims. This type of deed provides a guarantee from the seller that they hold clear title to the property and have the legal right to sell it. It includes specific promises, or covenants, regarding the property's title. These covenants typically cover the assurance that the title is clear of defects, and if any issues arise, the seller is responsible for resolving them. In contrast, other documents serve different purposes. A title deed is a general term that can refer to various documents associated with property ownership and does not specifically guarantee a lien-free title. An affidavit of title is a sworn statement by the seller affirming that there are no liens or encumbrances, but it does not provide the same level of assurance as a warranty deed because it relies on the seller’s representations rather than a formal guarantee. A trust deed, on the other hand, is associated with real estate financing and establishes a trust relationship where a third party holds the title for the benefit of the lender, making it unrelated to the assurance of clear ownership. Therefore, the warranty deed stands out as the most reliable document for assuring a buyer of clear ownership rights.

A warranty deed is the legal document that assures the buyer they have ownership rights to a property free from liens or claims. This type of deed provides a guarantee from the seller that they hold clear title to the property and have the legal right to sell it. It includes specific promises, or covenants, regarding the property's title. These covenants typically cover the assurance that the title is clear of defects, and if any issues arise, the seller is responsible for resolving them.

In contrast, other documents serve different purposes. A title deed is a general term that can refer to various documents associated with property ownership and does not specifically guarantee a lien-free title. An affidavit of title is a sworn statement by the seller affirming that there are no liens or encumbrances, but it does not provide the same level of assurance as a warranty deed because it relies on the seller’s representations rather than a formal guarantee. A trust deed, on the other hand, is associated with real estate financing and establishes a trust relationship where a third party holds the title for the benefit of the lender, making it unrelated to the assurance of clear ownership.

Therefore, the warranty deed stands out as the most reliable document for assuring a buyer of clear ownership rights.