Certified Pennsylvania Evaluator Practice Exam

What does a Warranty Deed guarantee?

1. The property is free of any debt

2. A guarantee to include the bundle of rights

3. The ability to sell the property without restrictions

4. That the property will appreciate in value

The correct answer is: A guarantee to include the bundle of rights

A Warranty Deed provides a guarantee to the grantee (buyer) that the grantor (seller) has clear title to the property and the legal right to transfer ownership. This type of deed ensures that the buyer receives the "bundle of rights," which includes the right to possess, use, and transfer the property, as well as protection against future claims to the title from third parties. The nature of a Warranty Deed involves the seller making specific promises, or warranties, regarding the status of the title. These warranties include assurances that there are no undisclosed encumbrances and that the seller will defend the title against any claims. Thus, option B accurately represents the core aspect of what a Warranty Deed guarantees. In contrast, the other options do not correctly reflect the guarantees provided by a Warranty Deed. The property being free of debt is not necessarily guaranteed since a deed does not relieve existing liens or obligations. While the ability to sell property without restrictions can be related to ownership rights, it does not specifically pertain to the warranty aspect of the deed itself. Moreover, the appreciation of property value is unpredictable and influenced by market conditions, and a Warranty Deed does not provide any assurance regarding future changes in property value.