New York Real Estate Salesperson ExaminationProperty OwnershipMedium
A buyer wishes to purchase a property and wants the strongest possible assurance that the seller holds clear title and will defend against any future claims to the property. Which type of deed would provide the buyer with the most comprehensive protection?
- AGeneral Warranty Deed
- BQuitclaim Deed
- CSpecial Warranty Deed
- DBargain and Sale Deed with Covenants
Show answer & explanationAnswer & explanation
Correct answer: A. General Warranty Deed
A General Warranty Deed offers the highest level of protection to the grantee because the grantor warrants the title against defects arising before and during their period of ownership.
Why the other options are wrong
- B. A Quitclaim Deed offers the least protection, only conveying whatever interest the grantor has, with no warranties.
- C. A Special Warranty Deed warrants title only against defects that arose during the grantor's period of ownership.
- D. A Bargain and Sale Deed with Covenants (often called a 'Covenant against Grantor's Acts' deed in NY) implies the grantor has title but only warrants against their own acts, not prior defects.
General Warranty Deed
A deed that provides the greatest protection to the grantee, offering warranties against defects in the title that arose at any point in the property's history.
- Contains five covenants (seisin, quiet enjoyment, against encumbrances, further assurances, warranty forever).
- Grantor defends title against all claims, past and present.
- Most commonly used deed in real estate sales.
Memory trick: Quit is quick, Special sells some, General guarantees great.