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In Ohio, which deed provides the greatest protection?

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Audio Lesson

Duration: 2:37

Question & Answer

Review the question and all answer choices

A

Quitclaim deed

A quitclaim deed offers no warranties of title, simply transferring whatever interest the grantor may have without any protection for the buyer against potential title defects.

B

Limited warranty deed

A limited warranty deed only provides protection for defects that occurred during the grantor's ownership period, offering less comprehensive coverage than a general warranty deed.

C

General warranty deed

Correct Answer
D

Fiduciary deed

A fiduciary deed is used specifically in situations involving trustees, guardians, or other fiduciary relationships and provides limited warranties, not the greatest protection available.

Why is this correct?

A general warranty deed provides the greatest protection because it includes six covenants covering the entire chain of title, protecting the buyer against any defects arising before or during the grantor's ownership period.

Deep Analysis

AI-powered in-depth explanation of this concept

Understanding deed types is crucial in real estate practice because deeds are the legal instruments that transfer property ownership. Different deeds offer varying levels of protection to buyers, which directly impacts risk assessment and transaction decisions. This question tests your knowledge of deed warranties in Ohio, a fundamental concept that affects every property transfer. The core concept here is the difference in covenants (promises) provided by each deed type. To arrive at the correct answer, we must recognize that deeds offer a spectrum of protection: quitclaim deeds offer no warranties, limited warranty deeds cover only the grantor's ownership period, general warranty deeds cover the entire chain of title, and fiduciary deeds have specific limited uses. The question is straightforward but tests precise knowledge of deed classifications. This connects to broader real estate knowledge about property transfer, title insurance, and risk management in transactions.

Knowledge Background

Essential context and foundational knowledge

Deeds are legal instruments that transfer title to real property. The type of deed determines the warranties (covenants) provided to the buyer. General warranty deeds originated from English common law and provide the strongest protection by including six covenants: seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and further assurance. These covenants run with the land and protect against defects in the entire chain of title, not just during the grantor's ownership period. This comprehensive protection exists because the grantor is warranting that they are transferring clear title free from any defects, making it the preferred deed type for buyers in most transactions.

Memory Technique
acronym

GWCQE - General Warranty Covenant Quiet Enjoyment

Remember that General Warranty deeds provide the most protection by covering all aspects: Grantor's ownership, Warranties against defects, Covenants running with the land, Quiet enjoyment assurance, and Further assurance promises.

Exam Tip

When asked which deed provides the greatest protection, always select 'general warranty deed' as it offers comprehensive covenants covering the entire chain of title, unlike other deed types which offer limited or no protection.

Real World Application

How this concept applies in actual real estate practice

A buyer is purchasing a property with a long and complex ownership history. The seller's attorney recommends using a general warranty deed to provide maximum protection. During the title search, an old easement from 1985 is discovered that wasn't disclosed. With a general warranty deed, the buyer can seek compensation from the seller for this defect, even though it existed before the seller's ownership. If a limited warranty deed had been used, the buyer would have no recourse for this pre-existing defect, highlighting why general warranty deeds provide superior protection in transactions with potential historical title issues.

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