PSI Oklahoma Real Estate Practice Test

Which type of deed is most preferred by buyers?

1. Special warranty deed

2. Quitclaim deed

3. General warranty deed

4. Vendor's deed

The correct answer is: General warranty deed

Buyers typically prefer a general warranty deed because it provides the highest level of protection regarding the title of the property. This type of deed guarantees that the seller holds clear title to the property and has the legal right to sell it. It includes several key covenants that protect the buyer, such as the promise that the title is free and clear of any encumbrances, that the seller will defend the title against any claims, and that it covers the entire history of the property. Since a general warranty deed assures the buyer against any future claims or issues that may arise, it gives the buyer confidence in their ownership and investment. This level of assurance is critical, especially in real estate transactions where the value of the property can be substantial. Buyers seeking to minimize risk and secure their investment will often prioritize this type of deed over others, which do not offer similar protections.