What does a general warranty deed guarantee?

A general warranty deed guarantees full warranties against title defects. This type of deed provides the highest level of protection to the grantee (the buyer) because it not only ensures that the grantor (the seller) holds clear title to the property but also protects against any defects in title, past or present. The grantor promises to defend against any claims that may arise from previous owners and assures that the title is free from liens and encumbrances—except those specifically disclosed in the deed.

This assurance stems from several covenants included in the deed. These covenants guarantee that the grantor has the legal right to sell the property, that the title is free from claims, and that the grantor will resolve any issues regarding the title that may arise in the future. As a result, the grantee can have confidence that they are receiving full ownership rights without the worry of past claims affecting their ownership.

In contrast, title insurance provides protection for the grantee but does not guarantee clear ownership in the same way a general warranty deed does. Limited warranties or ownership for a certain period also do not offer the same comprehensive protection as a general warranty deed. Thus, the correct choice illustrates the extensive guarantees provided by a general warranty deed, ensuring robust legal protection