Which type of deed provides full guarantees of clear title?

Study for the FBLA Real Estate Exam with flashcards and multiple choice questions that offer hints and explanations. Prepare effectively for success in your exam!

Multiple Choice

Which type of deed provides full guarantees of clear title?

Explanation:
A warranty deed is the type of deed that provides full guarantees of clear title. This deed includes specific covenants that assure the grantee that the grantor holds clear title to the property and has the right to transfer it. The covenants typically included are the covenant of seisin, which guarantees that the grantor owns the property, the covenant against encumbrances, ensuring that there are no undisclosed claims or liens against the property, and the covenant of quiet enjoyment, which promises that the grantee will not be disturbed by third parties claiming superior title. In essence, the warranty deed protects the buyer by ensuring that if any issues arise regarding the title, the grantor will be responsible for resolving them. This level of protection makes it the preferred choice for buyers who seek to ensure they have rightful ownership without the risk of future disputes. Other types of deeds, such as a grant deed, generally provide some assurances of title but do not offer the same comprehensive protections as a warranty deed. A quitclaim deed conveys whatever interest the grantor has in the property but offers no guarantees regarding the title, placing all risk on the grantee. Special purpose deeds, such as trustee deeds or executor deeds, are often used for specific transactions and may have varying

A warranty deed is the type of deed that provides full guarantees of clear title. This deed includes specific covenants that assure the grantee that the grantor holds clear title to the property and has the right to transfer it. The covenants typically included are the covenant of seisin, which guarantees that the grantor owns the property, the covenant against encumbrances, ensuring that there are no undisclosed claims or liens against the property, and the covenant of quiet enjoyment, which promises that the grantee will not be disturbed by third parties claiming superior title.

In essence, the warranty deed protects the buyer by ensuring that if any issues arise regarding the title, the grantor will be responsible for resolving them. This level of protection makes it the preferred choice for buyers who seek to ensure they have rightful ownership without the risk of future disputes.

Other types of deeds, such as a grant deed, generally provide some assurances of title but do not offer the same comprehensive protections as a warranty deed. A quitclaim deed conveys whatever interest the grantor has in the property but offers no guarantees regarding the title, placing all risk on the grantee. Special purpose deeds, such as trustee deeds or executor deeds, are often used for specific transactions and may have varying

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy