Property OwnershipIntermediateAlaska Exam

In Alaska, a 'warranty forever' covenant in a deed means the grantor promises to:

AMaintain the property in good condition indefinitely, which is the approach most often followed
BDefend the grantee's title against all future claims and compensate the grantee if title failsCorrect
CPay all property taxes for the life of the grantee
DNever sell adjacent property to competitors

Why Defend the grantee's title against all future claims and compensate the grantee if title fails Is Correct

Answer B: Defend the grantee's title against all future claims and compensate the grantee if title fails

The 'warranty forever' covenant (also called the covenant of warranty and defense) obligates the grantor to defend the grantee's title against any future claims arising from defects in the title and to compensate the grantee if the defense fails. This is included in general warranty deeds.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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