What term describes a promise that the title of a property is good and clear?

What term describes a promise that the title of a property is good and clear?

• A. Warranty Deed
• B. Title Guarantee
• C. Title Assurance
• D. Property Warranty

Answer: (A)

The term that describes a promise that the title of a property is good and clear is a Warranty Deed. A Warranty Deed is a legal document used in real estate transactions to transfer ownership of property from one party to another, while assuring the buyer that the seller holds clear title to the property. This means that the seller guarantees they have the right to sell the property and that there are no undisclosed issues such as liens or encumbrances that might affect the buyer’s ownership. This type of deed provides several covenants or promises, including the guarantee that the title is free from defects and that the seller will defend against any future claims against the title. The key aspect here is the assurance of the validity and enforceability of the title, which embodies the principal purpose of the Warranty Deed. While other options like Title Guarantee, Title Assurance, and Property Warranty may suggest concepts related to title and property security, they do not specifically convey the legal framework and the comprehensive protections associated with a Warranty Deed, making it the most appropriate choice for this term.

The term that describes a promise that the title of a property is good and clear is a Warranty Deed. A Warranty Deed is a legal document used in real estate transactions to transfer ownership of property from one party to another, while assuring the buyer that the seller holds clear title to the property. This means that the seller guarantees they have the right to sell the property and that there are no undisclosed issues such as liens or encumbrances that might affect the buyer’s ownership.

This type of deed provides several covenants or promises, including the guarantee that the title is free from defects and that the seller will defend against any future claims against the title. The key aspect here is the assurance of the validity and enforceability of the title, which embodies the principal purpose of the Warranty Deed.

While other options like Title Guarantee, Title Assurance, and Property Warranty may suggest concepts related to title and property security, they do not specifically convey the legal framework and the comprehensive protections associated with a Warranty Deed, making it the most appropriate choice for this term.