What does a grant deed assure regarding encumbrances?

A grant deed is a type of legal document used in real estate transactions and serves essential purposes in the transfer of property ownership. One of its primary functions is to provide assurances about the state of the title and any encumbrances on the property.

When a grant deed states that there are encumbrances, but they are noted, it means that while there may be existing liens, mortgages, or other claims against the property, those encumbrances are disclosed to the buyer. This requirement ensures transparency in the transaction; the seller is responsible for informing the buyer of any existing claims that may affect ownership or use of the property.

The language of the grant deed often contains a covenants clause, specifically a promise that the seller has not created any additional encumbrances without disclosing them. This distinction is crucial because it protects the buyer from unexpected liabilities and ensures they understand the complete picture of the property's legal status upon purchase.

In contrast, other options imply different circumstances regarding encumbrances. For instance, suggesting that there are no encumbrances or that all encumbrances have been cleared would indicate a higher level of assurance than what a grant deed typically provides, which is primarily about disclosing known encumbrances rather than guaranteeing that none exist