Wisconsin Real Estate Sales Practice Exam

Which type of deed offers the most comprehensive guarantee of title?

1. Quitclaim deed

2. Warranty deed

3. Special warranty deed

4. Grant deed

The correct answer is: Warranty deed

The warranty deed provides the most comprehensive guarantee of title because it includes several important assurances from the grantor to the grantee. In a warranty deed, the grantor guarantees that they hold clear title to the property and have the right to sell it. This type of deed includes covenants, which are formal promises—such as the covenant of seisin (the grantor owns the property), the covenant against encumbrances (no liens or other claims against the property), and the covenant of quiet enjoyment (the grantee will not be disturbed by claims against the property). In the event of any title issues arising post-transaction, the grantee can hold the grantor liable for any breaches of these covenants. This legal protection is what makes the warranty deed the most secure form of property transfer for the buyer. In contrast, other types of deeds, such as a quitclaim deed, offer no guarantees, while special warranty deeds provide limited assurances only for the period the grantor owned the property. A grant deed, while it does provide some assurances, does not offer the comprehensive protections that a warranty deed does.