Person A is preparing to convey a house to Person B. Person A cannot guarantee the title against any possible defects prior to ownership. What instrument should Person A use to convey title?

Rationale

A special warranty deed should be used to convey title.

A special warranty deed allows Person A to convey the title to Person B while only guaranteeing that the title is free from defects that occurred during Person A's ownership. This makes it suitable for situations where the seller cannot assure against all possible defects prior to ownership.

A (a warranty deed) YOUR ANSWER

A warranty deed provides the highest level of assurance to the buyer, guaranteeing that the title is free from defects at any point in the past, not just during the seller's ownership. Since Person A cannot guarantee the title against all defects, a warranty deed is not appropriate in this case.

B (a special warranty deed) CORRECT

A special warranty deed is the correct choice because it limits the seller's liability to only those defects that arose during their period of ownership. This means that while Person A cannot promise a completely clear title, they can assure Person B that no defects were created while they owned the property.

C (an estoppel certificate) YOUR ANSWER

An estoppel certificate is a legal document typically used in leasing agreements, confirming the status of the lease and any obligations owed. It does not convey property titles and therefore is not relevant to the situation of transferring ownership of a house.

D (a writ of execution) YOUR ANSWER

A writ of execution is a court order that enforces a judgment, allowing the seizure of property to satisfy a debt. It does not serve as a means to convey property title and is thus irrelevant to the conveyance of a house between Person A and Person B.

Conclusion

In real estate transactions where the seller cannot guarantee a title free from all defects, a special warranty deed is the appropriate instrument to use. It protects the buyer by ensuring that no issues arose during the seller's ownership, while also acknowledging the limitations of the seller's assurances regarding the title's history. This makes it an effective choice for Person A to convey the title to Person B.

Person A is preparing to convey a house to Person B. Person A cannot guarantee the title against any possible defects prior to ownership. What instrument should Person A use to convey title?

A special warranty deed should be used to convey title.

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