What does a Warranty Deed guarantee?

A Warranty Deed provides the highest level of protection to the buyer by guaranteeing that the property being transferred has a clear title. This means that the ownership of the property is unequivocal, and there are no undisclosed encumbrances or claims against it. In other words, the grantor (the person selling the property) assures the grantee (the person buying the property) that they have the legal authority to transfer ownership and that no one else has a legitimate claim to the property. This assurance is essential for the buyer's peace of mind and helps to prevent potential legal disputes in the future regarding the title of the property.

The other options do not fully capture the essence of what a Warranty Deed guarantees. While it is true that a Warranty Deed is typically used to convey property that is free of liens and encumbrances, its primary function is to assure clear ownership. Additionally, a Warranty Deed cannot guarantee the transfer of non-existent property or imply that the property can be vacated at any time, which misrepresents the rights and responsibilities associated with property ownership.