What is the primary function of a warranty deed?

A warranty deed serves a crucial function in real estate transactions by providing a guarantee of clear title and ownership transfer. This type of deed assures the buyer that the seller has the legal right to sell the property and that the title is free from any hidden liens or claims that could affect ownership.

In essence, when a warranty deed is executed, the grantor (seller) makes specific promises about the title's validity. If it later turns out that there are issues with the title, such as undisclosed encumbrances or claims by third parties, the grantor is legally liable for resolving those issues, often compensating the grantee (buyer) for any related losses. This makes the warranty deed a powerful tool for protecting the buyer's investment and fortifying their ownership rights.

The other options do not accurately describe the purpose of a warranty deed. A warranty deed is not designed for authorizing property rental, transferring property without guarantees, or serving as a verbal agreement, all of which misrepresent its legal function.