NCEES Principles and Practice of Surveying Practice Exam

Which statement accurately describes a Warranty Deed?

1. It guarantees that the property is free of debts and encumbrances.

2. The grantor does not assure good title to the property.

3. It releases ownership without any defeasance.

4. It does not provide a defense against claims on the property.

The correct answer is: It guarantees that the property is free of debts and encumbrances.

A Warranty Deed is a legal document that provides the highest level of protection to the grantee (buyer) in a real estate transaction. It guarantees that the grantor (seller) has clear title to the property and the right to sell it, meaning that the property is free of debts and encumbrances, such as liens or mortgages, at the time of transfer. This form of deed includes covenants where the grantor promises to defend the title against any claims and to compensate the grantee for any losses incurred due to title issues that arise after the sale. Therefore, the statement about a Warranty Deed accurately reflects its purpose and assurances offered to the property buyer. This legal assurance builds trust in the transaction and protects the interests of the new owner, making it a cornerstone of secure property transfers in real estate.