PSI Oklahoma Real Estate Practice Test

In Oklahoma, what is a unique feature of a warranty deed?

1. It guarantees a clear title to the buyer

2. It provides limited rights to the seller

3. It serves as a lease agreement

4. It is used exclusively for commercial properties

The correct answer is: It guarantees a clear title to the buyer

A warranty deed is a legal document that offers significant advantages to a property buyer in Oklahoma. The key feature of a warranty deed is that it guarantees a clear and marketable title to the buyer. This means the seller assures the buyer that they have full ownership of the property and the right to sell it. Additionally, it protects the buyer against any future claims or disputes regarding the title, such as previous liens or ownership disputes. By guaranteeing a clear title, the warranty deed gives the buyer confidence that they are acquiring the property without any unknown issues that could arise after the sale. This assurance is particularly valuable in real estate transactions, where disputes over ownership can lead to significant financial and legal problems. Other options, such as providing limited rights to the seller or serving as a lease agreement, do not accurately describe the primary function of a warranty deed. Moreover, warranty deeds are not exclusive to commercial properties; they can be utilized for both residential and commercial transactions. Therefore, the unique feature that sets warranty deeds apart is indeed their guarantee of a clear title to the buyer.