Maine Real Estate License Practice Exam

Which type of deed offers the most protection for the seller?

1. Special Warranty Deed

2. Warranty Deed

3. Quit Claim with Covenants

4. Quitclaim Deed

The correct answer is: Quitclaim Deed

The deed that offers the most protection for the seller is a Quitclaim Deed. This type of deed provides the seller with the least amount of liability. When a seller uses a Quitclaim Deed, they are essentially transferring their interest in the property to the buyer without making any guarantees about the property's title. This means that the seller is not responsible for any issues related to the title, such as liens or encumbrances that may exist. In contrast, other types of deeds, such as a Warranty Deed or a Special Warranty Deed, require the seller to make certain assurances about the title. A Warranty Deed guarantees that the seller holds clear title to the property and agrees to defend that title against any claims. A Special Warranty Deed offers similar protections but only for claims that arose during the seller's period of ownership. A Quitclaim with Covenants may provide some protections or assurances, but it is still not as favorable for the seller as a plain Quitclaim Deed, which shifts all responsibilities and liabilities away from the seller. In summary, the Quitclaim Deed provides maximum protection for the seller because it allows them to transfer their interest without any obligations or guarantees regarding the property's condition or title, minimizing their risk and liability.