Question

To avoid the exposure to liability imposed by the implied covenants in the grant deed, the spouse needed to sign only a quitclaim deed to either the seller or the buyer.

a) True
b) False

Answer 1

The statement is false because a quitclaim deed signed by a spouse does not avoid liability of implied covenants in a grant deed; a grant deed comes with guarantees that still hold regardless of the quitclaim deed.

Step-by-step explanation:

To address the question about the implications of signing a quitclaim deed in the context of avoiding liability with implied covenants in a grant deed, the statement is false. In real estate, a grant deed comes with certain implied covenants. The seller guarantees that they have not transferred the title to another party, and that the property is free from undisclosed encumbrances.

A spouse will typically sign away their interest in a property via a quitclaim deed during a sale if they are not on title, which simply transfers any ownership interest the spouse has in the property without warranties or covenants. However, this act alone does not shield the seller from the liabilities of implied covenants that are already established in the grant deed. So signing only a quitclaim deed does not avoid exposure to the liability of these covenants.