PSI Oklahoma Real Estate Practice Test

A warranty deed is a legal document that guarantees the property being conveyed is free from any liens or encumbrances, meaning that the seller has clear title to the property and the authority to sell it. This type of deed provides the highest level of protection for the buyer because it not only affirms that the seller holds clear title but also that the seller will defend the buyer against any claims to the title that may arise after the sale. The assurance that the property has no outstanding liens is essential in real estate transactions, as it protects the buyer from potential legal issues or financial burdens associated with any debts tied to the property.

Other options do not accurately capture the nature of a warranty deed. While there may be elements related to protecting seller interests or aspects of lease agreements, these descriptions do not reflect the primary function and security that a warranty deed provides in the realm of property sales.