What instrument warrants that the title is clear and free of encumbrances?

The correct answer is the Warranty Deed because it provides a guarantee from the seller to the buyer that the title being transferred is clear of any encumbrances, such as liens or claims against the property. This type of deed ensures that the seller has the legal right to transfer the title and that the property is free from issues that could affect the buyer's ownership. The seller is responsible for defending against any potential claims to the title that may arise after the sale, giving the buyer significant protection.

In contrast, while a Quitclaim Deed is a type of deed that transfers whatever interest the grantor has in the property, it does not provide any warranties regarding the title's status. It essentially offers no assurances or guarantees about the clear title, which makes it less secure for the buyer compared to a Warranty Deed. Title Insurance, while an important tool for protecting against future claims, is not an instrument that warrants clear title at the time of transfer; instead, it insures against losses from defects discovered after the purchase. A Mortgage Agreement is a loan instrument that outlines the terms of borrowing but does not deal with the title itself.