Final answer:
The General Warranty Deed provides the grantee with the most protection by guaranteeing clear title and protecting against liens and encumbrances with several covenants.
Step-by-step explanation:
The type of deed that provides the grantee with the most protection is the General Warranty Deed. This deed guarantees that the grantor holds clear title to a piece of real estate and has the right to sell it to the grantee. The General Warranty Deed offers the most extensive level of protection because it binds the grantor to several covenants or warranties.
The main covenants typically include the covenant of seisin, which guarantees that the grantor actually owns the property and has the legal right to sell it; the covenant against encumbrances, which assures the grantee that the property is free from liens or other encumbrances except those expressly noted in the deed; and the covenant of further assurances, where the grantor promises to obtain and deliver any instrument needed to make the title good.
Other types of deeds, such as the Special Warranty Deed or the Quitclaim Deed, provide less protection as they only guarantee the title for the period the seller owned the property or do not provide any warranty at all, respectively. Hence, when seeking the highest level of protection in a property transaction, buyers typically prefer the General Warranty Deed.