Certified Pennsylvania Evaluator Practice Exam

What are the two kinds of deeds in property ownership?

1. Warranty and Transfer Deed

2. Quit Claim and Lease Deed

3. Warranty and Quit Claim

4. Fee Simple and Quit Claim

The correct answer is: Warranty and Quit Claim

The two primary types of deeds in property ownership are Warranty deeds and Quit Claim deeds. A Warranty deed provides a guarantee from the seller (grantor) to the buyer (grantee) that the title to the property is clear, meaning there are no hidden claims or liens against the property. This type of deed offers the highest level of protection to the buyer, as it includes specific covenants that assure the buyer of the legitimacy of the title. On the other hand, a Quit Claim deed does not provide any guarantees about the title. It simply transfers whatever interest the seller may have in the property to the buyer, without any warranty of title. This type of deed is often used in situations where the parties know each other well, such as transferring property between family members, or to clear up title issues. In summary, the distinction lies in the level of protection and the guarantees regarding the property title. Warranty deeds are comprehensive in protecting the buyer's interests, while Quit Claim deeds are much more limited in scope. This understanding is crucial for those involved in real estate transactions to ensure they choose the appropriate deed based on their needs and the circumstances surrounding the property transfer.