Which of the following is considered a characteristic of a warranty deed?

A warranty deed is a type of legal document used in real estate transactions that offers the highest level of protection to the buyer. One of its defining characteristics is that it guarantees a clear title to the property being transferred. This means that the grantor (the person transferring the property) assures the grantee (the person receiving the property) that there are no undisclosed encumbrances, claims, or legal issues associated with the title, thereby providing peace of mind.

By guaranteeing that the title is clear, the warranty deed not only affirms the grantor's ownership but also protects the grantee against potential future claims on the property. This protection typically includes a promise that if anyone attempts to contest the title or claim ownership, the grantor will take responsibility for defending the title or compensating the grantee.

In contrast, the other choices are not indicative of a warranty deed's characteristics. A warranty deed is not limited to transferring only existing interest, as it fully transfers the title and ownership rights. It is not a document used for leasing property; rather, it is specifically for the sale of property. Lastly, a warranty deed, like most legal documents involved in real estate transactions, requires the signatures of the parties involved to be valid.