Final answer:
The buyer may assume that the seller has clear title to the property, but this does not guarantee the property is free of all encumbrances, nor does it indicate the property is exempt from taxes or the seller's financial stability.
Step-by-step explanation:
When a prospective buyer discovered that the seller was the grantee in the last recorded deed and that there is no mortgage on record against the property, it suggests certain aspects about the property's title. However, it does not provide full certainty on several matters. While it implies that the property may not have a mortgage, it does not cover other potential encumbrances, which can include liens, easements, or covenants restricting the use of the property. It is also unrelated to the financial stability of the seller or whether the property is subject to property taxes.
To have a clear view of the ownership and any encumbrances, a complete title search must be carried out. In this situation, the buyer may assume (b) The seller has clear title to the property, as being the grantee in the last deed means the seller was the recipient of the property, which implies that they have claim to it. However, this does not ensure that the property is free of all encumbrances or property taxes, and it certainly does not indicate anything about the seller's financial status. Accuracy in property titles is crucial for transactions, where dimensions and acreage of the property, such as in farming lands being sold for new developments, come into play. As stated, each landowner would need to make a declaration of their property for tax assessments, which is separate from issues of title.