Escrow & Title
A grant deed in California contains which of the following implied warranties?
AThe grantor warrants title against all defects ever
BThe grantor warrants they have not previously conveyed the property to anyone else and that the property is free of undisclosed encumbrances created by the grantor✓ Correct
CThe grantor guarantees the property is free of all environmental hazards
DThe grantor guarantees the property will appreciate in value
Explanation
Under California Civil Code Section 1113, a grant deed contains two implied covenants: (1) the grantor has not previously conveyed the same estate to anyone else, and (2) the property is free from encumbrances made by or under the grantor. These implied warranties are limited to the grantor's period of ownership.
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