Question

3 of 10 - Chandra is selling her condo to Fabian. Chandra's deed explains the property has been clear since her ownership. However, she cannot guarantee that is the case prior to buying the condo. Which deed covers this situation? A. Bargain and Sale B. Special Warranty C. General Warranty D. Tax"

a) Bargain and Sale
b) Special Warranty
c) General Warranty
d) Tax

Answer 1

The deed where a seller guarantees clear title only during their period of ownership but not before is a Special Warranty Deed.

Step-by-step explanation:

The deed that covers the situation where Chandra is selling her condo to Fabian and can only guarantee the clear title during her ownership period, but not prior to that, is known as a Special Warranty Deed. This type of deed ensures that Chandra, the seller, is giving assurance that there are no title defects arising during her period of ownership. However, Chandra is not ensuring or warranting anything before she took ownership of the property. This is in contrast to a General Warranty Deed, which assures the buyer of a clear title both during and before the seller's ownership, and a Bargain and Sale Deed, which does not provide any protection against claims at all.

A special warranty deed is a type of deed that is used in real estate transactions to convey property from a seller to a buyer. It guarantees that the seller holds clear title to the property during their ownership, but does not guarantee clear title for previous owners.