A developer in Middlesex County, New Jersey, conveys a residential lot to a buyer using a deed that contains no express warranties but recites that the conveyance is made in consideration of $350,000. After closing, the buyer discovers a pre-existing lien on the property that the developer did not disclose. Which type of deed most likely provides the buyer with the LEAST legal recourse against the developer?
Correct Answer
A) Quitclaim deed
A quitclaim deed conveys only whatever interest the grantor holds at the time of transfer and makes absolutely no warranties of title — not even a limited covenant against the grantor's own acts. If the buyer received a quitclaim deed, they have no warranty-based legal recourse against the developer for the pre-existing lien, because the grantor made no promise about the condition of title. The buyer assumed all title risks by accepting a quitclaim deed.
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