Fundamentals of Surveying (FS) Practice Exam

What type of deed is considered a title guarantee?

1. Possession insurance

2. A Torrens title

3. A warranty deed

4. An agreement between owners to fix a disputed boundary line

The correct answer is: A warranty deed

A warranty deed is a type of deed that provides a title guarantee, ensuring that the grantor (the person transferring the property) is the rightful owner and has the legal right to transfer the property. This deed guarantees that the property is free from any liens or encumbrances, except those that are specifically stated in the deed. Furthermore, a warranty deed usually includes a promise that the grantor will defend the title against any claims from third parties, thereby providing an additional layer of security for the grantee (the person receiving the property). This guarantee is significant because it protects the interests of the grantee in the event that a previous owner or creditor asserts a claim against the property. The warranty deed is intended to provide peace of mind, as it assures the buyer that the property is clear of issues that could affect ownership. Other types of deeds, such as a Torrens title, operate under a different system where ownership rights are guaranteed by a government authority rather than through the assurances of a grantor. Possession insurance refers to a different concept related to the coverage of loss due to theft or damage and does not pertain to property title guarantees. Agreements between owners to fix a disputed boundary line involve negotiations and resolutions of conflicts but do not inherently provide