Final answer:
The correct warranties included in a grant deed are a) Warranty of title and warranty against encumbrances. These ensure the property is legally transferable and free of undisclosed liens, differentiating from warranties applicable to consumer goods or other types of products. Option A is correct.
Step-by-step explanation:
A grant deed uses the term "grant" in its words of conveyance and typically includes two key warranties. The correct warranties provided by a grant deed are: a) Warranty of title and warranty against encumbrances. A warranty of title is an assurance by the grantor that they have the legal authority to transfer the property and that there are no undisclosed ownership claims against it.
A warranty against encumbrances means that the property is free of liens or other burdens except those disclosed. These warranties are not to be confused with a warranty of fitness or habitability, which applies to goods or products assuring their suitability for a particular purpose or their livable condition, respectively. Similarly, warranties of merchantability and quality, or authenticity and origin, relate to consumer goods or art and collectibles, not real estate transactions.
Restrictive covenants, another element associated with real property, are provisions in a deed limiting the use of the property and prohibiting certain uses, which serve to maintain the character of a neighborhood. These are different from warranties. Warranties ensure the buyer is protected against specific defects or issues with the property at the time of the sale, while restrictive covenants dictate future use of the property.