Illinois Real Estate Practice Exam

Which type of deed provides the most covenants or warranties in Illinois real estate transactions?

1. General Warranty Deed

2. Bargain And Sale Deed

3. Special Warranty Deed

4. Quitclaim Deed

The correct answer is: General Warranty Deed

The choice of a general warranty deed is indeed correct, as it offers the most extensive set of covenants and warranties regarding the title of the property. This type of deed guarantees that the seller (grantor) holds clear title to the property and has the right to sell it, while also committing to defend the buyer (grantee) against any claims that may arise from prior owners. A general warranty deed typically includes several key warranties, such as the covenant of seisin (the grantor owns the property), the covenant against encumbrances (no undisclosed liens or claims against the property), the covenant of quiet enjoyment (the grantee can possess the property without disturbance), and the covenant of further assurances (the grantor will help resolve any future title issues). This robust level of protection makes the general warranty deed the preferred choice for buyers seeking assurance about the property's title history. In contrast, the bargain and sale deed may provide some level of assurance but does not include the same extensive protections against title defects. The special warranty deed offers warranties only for the period during which the grantor owned the property, leaving out any issues from previous owners. Lastly, the quitclaim deed provides no warranties at all, transferring only whatever interest the grantor has in