PSI Oklahoma Real Estate Practice Test

What is a significant benefit of a general warranty deed for buyers?

1. Limited liability for property defects

2. Full ownership without restrictions

3. Guarantee of clear title and protection against future claims

4. Easier transfer of ownership

The correct answer is: Guarantee of clear title and protection against future claims

A significant benefit of a general warranty deed for buyers lies in the guarantee of clear title and protection against future claims. This type of deed provides the highest level of protection to the buyer, ensuring that the seller guarantees that they hold clear title to the property being transferred. It means the seller is also responsible for any issues that may arise regarding the ownership of the property, even those that may have occurred before the seller acquired it. In essence, if any claims or defects in the title are discovered after the sale, the seller is obligated to address those issues, which may include legal disputes or claims of ownership by others. This guarantee helps buyers feel secure in their investment, knowing they will not be held accountable for any past encumbrances or liens that may have been placed on the property prior to their ownership. The other options, while they reflect aspects of property ownership, do not encapsulate the distinctive safety net provided by a general warranty deed. Limited liability and easier transfers are not exclusive features associated solely with general warranty deeds, and full ownership without restrictions is not guaranteed by this type of deed as existing easements or zoning laws may still apply. Thus, the guarantee of clear title and protection against future claims is the most significant and distinguishing benefit for buyers acquiring