PSI New Jersey Real Estate State Practice Exam

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Prepare for the New Jersey Real Estate Exam. Ace your test with comprehensive multiple-choice questions. Each question includes detailed explanations and hints. Start studying today and boost your confidence!

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Which type of deed provides the least protection for the grantee?

Warranty deed
Grant deed
Quitclaim deed
Special purpose deed

The correct answer is: Quitclaim deed

The quitclaim deed provides the least protection for the grantee because it transfers whatever interest the grantor has in the property without any warranties or guarantees regarding the title. This means that if the grantor does not hold a valid title or if there are existing liens or claims against the property, the grantee has no recourse against the grantor. In contrast, a warranty deed offers a full guarantee to the buyer that the title is clear and that the seller will defend against any future claims to the property. A grant deed provides some level of protection by asserting that the grantor has not transferred the same property to anyone else and that the property is free from encumbrances, except as specified. Special purpose deeds, while varying in function, still typically convey specific rights and obligations. Thus, the quitclaim deed's lack of any legal assurances is what makes it the weakest option for the grantee.