Explanations
nnnnA grant deed, commonly used in California, carries two primary implied warranties from the grantor (seller) to the grantee (buyer)
nnnn- n
- Non-Prior Conveyance: The grantor warrants that they have not previously conveyed or transferred the same property or its interests to another party prior to the current transaction. nnnn
- Undisclosed Encumbrances: The grantor warrants that the property is free from any encumbrances that were not disclosed to the grantee. n
Let’s look at why other options are less accurate:
nnnnD. May be delivered conditionally: While a deed, including a grant deed, can be delivered conditionally (often through an escrow agent who holds it until specific conditions are met), this describes a method of delivery rather than a warranty provided by the grant deed itself. The question specifically asks what the grant deed “warrants.”
nnnnA. Warrants that there are no encumbrances on the property being conveyed: This is too absolute. A grant deed only warrants against undisclosed encumbrances. The property may have disclosed encumbrances (like mortgages or easements) that the buyer accepts, and these do not violate the warranty.
nnnnB. May be used to transfer both real and personal property: A grant deed is specifically used for the transfer of real property. Personal property is typically transferred using a bill of sale.
nnnn