Escrow & Title
A Connecticut buyer receives a general warranty deed. This deed provides which of the following warranties?
AThe seller only warrants against defects created during the seller's ownership
BThe seller warrants title against all defects, including those that arose before the seller acquired the property✓ Correct
CThe buyer accepts the property with no warranties
DThe deed only conveys whatever interest the seller happens to have
Explanation
A general warranty deed contains covenants in which the grantor warrants title against all defects—even those that arose before the grantor acquired the property. It provides the buyer with the highest level of deed protection.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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