Which document ensures that a property is free from encumbrances?

Prepare for the ABRC Property Test with flashcards and multiple choice questions. Each question has hints and explanations to hone your knowledge and boost confidence for your exam.

A warranty deed is a legal document that guarantees that the seller has clear ownership of the property and the right to sell it. Most importantly, it ensures that the property is free from encumbrances such as liens, easements, or other claims that could affect the buyer's ownership. The warranty deed provides a warranty against any future claims on the property, giving the buyer added security and peace of mind.

Rental agreements, purchase agreements, and lease agreements do not serve this purpose. A rental agreement typically outlines the terms under which a tenant can occupy a property but does not convey ownership or freedom from encumbrances. A purchase agreement details the terms of selling a property but does not guarantee that the property is free from claims; that assurance comes from the warranty deed. Similarly, a lease agreement allows a tenant to use a property but does not confirm ownership or encumbrance status. Therefore, the warranty deed is the document specifically designed to address these concerns regarding encumbrances.

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