Tennessee Realtor State Practice Exam

Which type of deed is commonly used to clear any clouds on a title?

1. General Warranty Deed

2. Special Warranty Deed

3. Quitclaim Deed

4. Deed of Trust

The correct answer is: Quitclaim Deed

The Quitclaim Deed is specifically designed to clear any clouds or defects on a title. It serves as a simple conveyance of whatever interest the grantor has in the property without making any guarantees about the validity or extent of that interest. This is particularly useful in situations where there may be disputes over ownership or when trying to resolve issues such as liens, inheritance claims, or estate settlements. In contrast, other types of deeds, such as the General Warranty Deed and the Special Warranty Deed, offer different levels of protection and assurance regarding the ownership and condition of the title. A General Warranty Deed provides the highest level of protection, assuring the buyer that the title is free from defects for the entire duration of ownership. A Special Warranty Deed offers similar assurances but only covers the period during which the grantor owned the property. A Deed of Trust is not a type of deed used for transferring ownership; instead, it is a financial instrument used to secure a loan by transferring an interest in property to a trustee until the debt obligation has been met. Therefore, in the context of clearing title issues, the Quitclaim Deed is the appropriate choice.