Fundamentals of Surveying (FS) Practice Exam

A warranty deed provides which of the following?

1. No guarantees about the title

2. A promise that the title is clear

3. Only a partial transfer of interest

4. A statement of property value

The correct answer is: A promise that the title is clear

A warranty deed provides a promise that the title is clear, meaning that the grantor guarantees that they hold clear title to the property and have the right to transfer ownership. This type of deed offers a high level of protection to the buyer, as it assures them that there are no undisclosed liens, encumbrances, or other claims against the property that could affect their ownership. In contrast, a warranty deed differs significantly from other types of deeds that may provide fewer protections, such as quitclaim deeds, which offer no guarantees about the title. The assurance in a warranty deed is legally binding and plays a crucial role in real estate transactions, ensuring that the buyer can take possession of the property without fear of future claims from others regarding ownership or title issues.