Texas Surveyors Practice Exam

What is the key difference between a warranty deed and a quit claim deed?

1. Warranty deeds are unconditional transfers

2. A warranty deed guarantees clear title

3. A quit claim deed is more secure

4. Both deeds require the same guarantees

The correct answer is: A warranty deed guarantees clear title

The essential difference between a warranty deed and a quit claim deed lies in the guarantees provided regarding the title of the property being transferred. A warranty deed guarantees that the grantor has a clear and marketable title to the property, meaning that the grantor is legally bound to defend the title against any claims that may arise. This type of deed offers the highest level of protection to the buyer, as it ensures that the property is free of liens or encumbrances, or at least provides recourse if any issues come up after the sale. In contrast, a quit claim deed provides no such guarantees. It merely transfers whatever interest the grantor has in the property without any assurances about the quality of the title. For this reason, individuals typically prefer warranty deeds in real estate transactions when seeking security and certainty regarding their ownership rights. This understanding of the nature of these deeds helps clarify why the choice emphasizing the guarantee of a clear title is the correct one.