What ensures that the grantor states they hold the title conveyed in the deed?

The correct choice, which is the covenant of seisin, specifically addresses the grantor's assurance regarding the title of the property. This covenant is a promise made by the grantor in a deed that they possess legal ownership and the right to convey the property being sold. Essentially, it guarantees that the grantor is not only the owner of the property but also that the title is free from claims and encumbrances, other than those explicitly mentioned in the deed.

The significance of this covenant lies in its role in protecting the grantee from potential title disputes. With the covenant of seisin, the grantee gains confidence knowing that the grantor has the legal authority to transfer ownership, reducing the risk of future legal issues related to title disputes.

While options like the grant of warranty and title insurance relate to protecting the grantee's interests in transactions, they address different aspects of property transfer. The grant of warranty involves assurances about future claims against the property, and title insurance provides coverage against defects in the title that may arise post-transaction. A power of attorney, on the other hand, relates to authorizing someone to act on behalf of another, which does not specifically indicate anything about the title conveyed in the deed.