A New Jersey real estate licensee is explaining the difference between a general warranty deed and a bargain and sale deed with covenants against grantor's acts to a buyer client. All of the following statements accurately distinguish these two deed types EXCEPT:
Correct Answer
D) A general warranty deed provides no recourse for the grantee if a title defect is discovered after closing
The statement that a general warranty deed provides 'no recourse' for the grantee is FALSE — it is the exact opposite. A general warranty deed provides the GREATEST recourse for the grantee because the grantor warrants title against all defects, regardless of when they arose. If a title defect is discovered, the grantee can bring a breach of warranty claim against the grantor. This statement does not accurately distinguish the two deed types; it is simply incorrect.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A freehold estate represents ownership of real property with an indefinite duration.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
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