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

The warranty deed is a type of deed that provides the highest level of protection to the grantee (the person receiving the property). This deed guarantees that the title is clear and free from any encumbrances, meaning there are no liens, claims, or legal issues attached to the property. The grantor (the person transferring the property) assures the grantee that they hold valid title and have the right to convey it.

In a warranty deed, the grantor also provides a series of covenants or promises that guarantee the grantee's ownership rights. These include the covenant of seisin, which assures that the grantor truly owns the property, and the covenant against encumbrances, which ensures that there are no undisclosed claims or liabilities tied to the property.

This differs from a quitclaim deed, which does not offer any guarantees about the title and merely transfers whatever interest the grantor may have. A grant deed may imply certain warranties but does not provide the same comprehensive assurances as a warranty deed. A trust deed is used to secure a loan by placing property in a trust but does not provide title warranties to the holder of the trust.

Therefore, the warranty deed is the correct answer as it best describes a deed that guarantees a clear