Which type of deed creates Grantor liability for actions of predecessors in title?

Prepare for the Alabama Title Insurance Test. Practice with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

A General Warranty Deed creates liability for the grantor regarding the actions of predecessors in title because it provides the broadest level of protection to the grantee. This type of deed contains several warranties or covenants that assure the grantee of the grantor's legal right to convey the property, the property's freedom from any pre-existing encumbrances, and a guarantee that the grantee will not be disturbed in their possession by someone claiming superior title.

Specifically, the General Warranty Deed includes warranties that extend back to all prior owners, without limitation. This means that if any defects in title or claims arise from previous owners' actions, the grantor of a General Warranty Deed is responsible for addressing those issues. This is in stark contrast to other types of deeds, such as a Special Warranty Deed, which only protects against issues arising during the grantor's period of ownership, or a Quit Claim Deed, which offers no warranties at all and only transfers whatever interest the grantor has in the property, if any. Thus, the General Warranty Deed is unique in its commitment to cover potential claims that originated before the current grantor's ownership, thereby ensuring a higher level of security for the grantee.

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