Massachusetts Real Estate License Practice Test

What is a primary characteristic of a Warranty Deed?

1. It transfers ownership without warranties

2. It guarantees a clear title and quiet possession

3. It allows the seller to retain interest in the property

4. It is specifically for commercial properties

The correct answer is: It guarantees a clear title and quiet possession

A Warranty Deed is a legal document that provides the highest level of protection for the buyer in a real estate transaction. One of its primary characteristics is that it guarantees a clear title to the property being transferred. This means the seller asserts that they own the property free of any encumbrances or claims that could affect ownership. Additionally, the Warranty Deed ensures quiet possession, meaning the buyer can take ownership without interference from later claims or disputes about the title. The seller not only transfers ownership but also warrants that they have the authority to sell the property and that it is free from any liens or legal issues. This level of assurance is why this type of deed is often preferred by buyers when purchasing real estate. In contrast, other types of deeds, such as a Quitclaim Deed, do not provide such guarantees and transfer ownership without any warranties regarding the title. The other choices do not align with the fundamental principles governing a Warranty Deed.