Escrow & Title

In Florida, a 'certificate of title' in a foreclosure sale differs from a 'warranty deed' in that it:

AProvides the same guarantees but costs less
BContains no warranties — the buyer receives only what the court's foreclosure proceeding conveyed✓ Correct
CIs superior to a warranty deed because it has judicial backing
DTransfers only the equity of redemption to the purchaser

Explanation

A certificate of title issued after a Florida foreclosure sale conveys whatever interest the foreclosed owner had, but contains no title warranties from the seller (the foreclosed party). The buyer must obtain title insurance to protect against title defects. A warranty deed, by contrast, includes covenants guaranteeing the title against claims by the grantor and others.

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