A warranty deed provides which level of protection?

• A. This deed provides the highest level of protection. The grantor guarantees title and his right to transfer.
• B. This deed carries no guarantees about title.
• C. This deed guarantees title only against undisclosed liens.
• D. This deed ensures equitable title but not marketable title.

Answer: (A)

Warranty deeds provide the strongest protection a buyer can receive. They include covenants that the grantor actually owns the property and has the right to convey it, and that the title is free from defects and undisclosed encumbrances. The grantor also promises to defend the title against any claims and to remedy problems if they arise. This broad set of assurances is known as a general or full warranty, and it covers title defects that may have existed before the grantor owned the property as well as during their ownership. Because of this comprehensive coverage, a warranty deed offers the highest level of protection to the grantee. Other deeds offer fewer guarantees: quitclaim deeds convey whatever interest the grantor has with no warranties; special (limited) warranty deeds cover only defects that occurred during the grantor’s ownership; and deeds that promise only equitable or non-marketable title do not provide the broad assurances of a general warranty deed.