California Real Estate SalespersonTransfer of PropertyEasy
A seller conveys title to a buyer using a grant deed. Which covenant is automatically implied by law even though it is not written in the deed?
- AThe grantor will defend the title against all claims forever
- BThe grantor has clear and marketable title of record
- CThe property is free of all liens and encumbrances
- DThe grantor has not previously conveyed the same property to another person
Show answer & explanationAnswer & explanation
Correct answer: D. The grantor has not previously conveyed the same property to another person
California grant deeds carry two implied warranties: (1) the grantor has not already conveyed the property to someone else, and (2) the estate is free from encumbrances made by the grantor, except those disclosed. A full warranty of defending title forever is a feature of a warranty deed, not a grant deed.
Why the other options are wrong
- A. This broader lifetime defense warranty applies to warranty deeds, not grant deeds.
- B. Marketability of title is not guaranteed by the grant deed itself; that is a title insurance function.
- C. Only encumbrances created by the grantor (not all encumbrances) are implicitly warranted against.
Grant Deed Implied Warranties
A grant deed automatically implies that the grantor has not already conveyed the property to another and that it is free of grantor-created encumbrances not disclosed.
- Grant deed is the most commonly used deed in California
- Implied warranties exist even without express language
- Does not guarantee against encumbrances created by prior owners
Memory trick: Grant deed 'Guarantees' no prior Grant and no Grantor liens