University of Central Florida (UCF) BUL3130 Legal and Ethical Environment of Business Practice Exam 2

A primary characteristic of a Warranty Deed is that it protects against future claims. This type of deed provides a strong assurance to the buyer that the title to the property is clear of any encumbrances, such as liens or claims from previous owners. Essentially, the grantor (the person transferring the property) warrants that they hold the title and have the legal right to sell it, and they promise to defend the title against any future claims that may arise. This means if someone were to come forward with a claim to the property after the sale, the grantor would be responsible for resolving that claim, providing peace of mind for the grantee (the person receiving the property).

The other options do not accurately describe the defining features of a Warranty Deed. For example, the presence of numerous restrictions is more characteristic of restrictive covenants or conditions rather than Warranty Deeds. Transferring title without guarantees typically aligns with quitclaim deeds, which do not provide any warranties. Lastly, a Warranty Deed must be in written form to be legally enforceable, so it does require written documentation.