What is the Strongest Instrument for Conveying Real Property and Insuring Good Title?
Question:
Which of the following options is the most strongest that conveys real property and insure good title?
a. general warranty deed
b. policy of title insurance
c. title commitment
d. attorney opinion of value
Final answer: A general warranty deed is deemed the most comprehensive instrument for conveying real property and insuring good title, as it guarantees a clear title and full right to sell.
Answer:
The strongest instrument for conveying real property and insuring good title is a general warranty deed.
When considering the various options available for conveying real property and insuring good title, it is important to understand the differences between each instrument.
A general warranty deed is considered the most robust choice as it provides a range of covenants that ensure the buyer that the property title is free from any defects, liens, or other encumbrances. This deed guarantees that the seller has the full legal right to sell the property, giving the buyer peace of mind about the title's integrity.
In comparison, a policy of title insurance offers protection against future title defects that may arise after the sale but does not actually transfer ownership of the property itself. It serves as a safeguard against undiscovered issues with the title.
A title commitment is a statement from a title company promising to issue a title insurance policy upon completion of the transaction, subject to specific conditions. This commitment ensures that the buyer will receive title insurance coverage once the deal is finalized.
Finally, an attorney's opinion of value pertains to the property's appraisal rather than the conveyance or title insurance. It is valuable information for assessing the property's worth but does not directly address the title's integrity.
In conclusion, when looking for the strongest instrument to convey real property with good title assurance, a general warranty deed is the most comprehensive choice due to its extensive protections and guarantees.