Maine Real Estate License Practice Exam

For how long does a seller guarantee the title quality when granting a warranty deed?

1. Warranty is for the period of ownership

2. Warranty is for the period of forty years

3. Warranty is for the period of ownership and all previous owners in the chain of title

4. Warranty is guaranteed solely by the title company

The correct answer is: Warranty is for the period of ownership and all previous owners in the chain of title

The guarantee provided by a seller when granting a warranty deed encompasses both the period of ownership and all previous owners in the chain of title. This means that the seller assures the buyer that the title is free from defects that may have arisen during their ownership as well as from prior ownerships. This protection is significant because it gives the buyer assurance that no other claims could come up against the property that might arise from issues occurring before the seller took ownership. If a defect in the title is discovered later, the seller could potentially be held liable for any damages related to that defect, reinforcing the strength and reliability of the warranty deed. The other options do not fully encapsulate the scope of the warranty. The option that states the warranty is for the period of ownership overlooks the protection afforded by prior ownerships. The forty-year period does not align with the typical understanding of warranty deeds, as there’s no standardized time frame such as this universally applied. Finally, the option that suggests the warranty is solely guaranteed by the title company fails to recognize that the seller also provides a personal warranty regarding the title, which is a cornerstone of a warranty deed.