Michigan Real Estate Salesperson Practice Exam

The General Warranty Deed provides the highest level of protection to the grantee because it involves a full guarantee from the grantor regarding the title of the property. When a grantee receives a General Warranty Deed, they are assured that the title is clear and free of any defects, and the grantor is legally obligated to defend the title against any claims made by third parties, no matter when those claims arise. This level of assurance encompasses both the period during which the grantor owned the property and extends to all previous owners.

In contrast, a Quitclaim Deed conveys whatever interest the grantor has in the property but offers no guarantees about the quality of that interest or whether any defects exist. A Special Warranty Deed only guarantees the title against defects arising during the grantor's ownership, which does not provide the same level of protection as a General Warranty Deed. A Grant Deed generally provides some assurances but falls short of the protections afforded by the General Warranty Deed in terms of liability for past claims. Thus, the General Warranty Deed stands out as the most protective option for grantees in real estate transactions.