What type of deed provides the highest level of protection to the grantee?

Prepare for the Metro Brokers Exam with flashcards and multiple choice questions. Each question is accompanied by hints and explanations. Get ready for your certification!

A warranty deed provides the highest level of protection to the grantee because it includes specific guarantees from the grantor about the title of the property. These guarantees ensure that the grantor holds clear title to the property and has the legal right to sell it, while also protecting the grantee against potential future claims or issues that may arise regarding the ownership and legality of the title.

In a warranty deed, the grantor makes promises about the property's title not just for the time the deed is executed, but extending back in time to cover any issues that may have arisen before the current transaction. This level of assurance is particularly important for buyers, as it minimizes the risk of losing ownership due to unforeseen title defects, such as liens or claims from other parties.

In contrast, a quitclaim deed offers no warranties and simply transfers whatever interest the grantor has in the property, if any, making it the least protective option for the grantee. A special warranty deed, while it does offer some protection, only guarantees the title for the time the grantor owned the property, thus providing a lesser level of security compared to a warranty deed. A deed in lieu of foreclosure typically involves relinquishing property to avoid foreclosure, but it doesn’t relate to title protection in

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy