Final answer:
A warranty deed provides a full guarantee of the title's quality by the grantor to the grantee, ensuring rightful ownership, no undisclosed liens, quiet possession, and defense against any adverse claims. It parallels a service contract, promising to address any title defects discovered post-conveyance.
Step-by-step explanation:
By conveying real estate with a warranty deed, the grantor is essentially providing a guarantee about the quality of the property's title. This assurance covers several key aspects:
- That the grantor has the right to transfer the property - meaning there is clear ownership without legal disputes or claims.
- The property is free from liens or encumbrances, except those explicitly stated in the deed.
- That the grantee (buyer) will enjoy quiet possession of the property without facing any adverse claims to the title by others.
- If any claims against the title crop up, the grantor is bound to defend the grantee's title to the property.
If problems with the title are found after the conveyance, the grantor is responsible for correcting these issues, which can range from legal disputes to inaccuracies in the property description, including problems with the dimensions of the land or mistakes in the acreage calculation from those dimensions. This protection is similar to a service contract, which offers repair or replacement of a good for a set time period, as applied to real estate transactions.