Which type of deed guarantees that the seller has a marketable title to the property?

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Prepare for the UCF BUL3130 Legal and Ethical Environment of Business Exam 2. Dive into legal and ethical concepts with flashcards, multiple-choice questions, and detailed explanations. Get exam-ready with comprehensive study resources!

A Warranty Deed is the type of deed that guarantees the seller has a marketable title to the property being transferred. This means that the seller assures the buyer that they own the property and that there are no undisclosed liens or claims against it. Additionally, the seller promises to defend the title against any future claims, providing the highest level of protection to the buyer.

In the context of real estate transactions, a marketable title is essential because it establishes the buyer's right to ownership and provides assurance that the property can be sold or financed in the future without complications. This is a crucial aspect for buyers as it mitigates the risk of potential disputes or legal issues that could arise after the purchase.

The other types of deeds mentioned do not provide the same level of assurance regarding the seller’s title. A Quitclaim Deed transfers whatever interest the seller has in the property without any guarantees, making it a less secure option for buyers. A Limited Warranty Deed offers some assurances but only covers issues that arose during the seller's ownership, while a Special Warranty Deed is similar but provides guarantees limited to the seller's ownership period.