ICC Permit Technician Practice Exam

A warranty deed ensures that the buyers of the property are which of the following?

1. Sold "as is"

2. Free from liens and encumbrances

3. Guaranteed not to be in a floodplain

4. In full compliance with all local codes

The correct answer is: Free from liens and encumbrances

A warranty deed is a legal document used in real estate transactions that guarantees the buyer that the title to the property is clear and free of any liens and encumbrances. When a buyer receives a warranty deed, it signifies that the seller holds good title to the property, has the right to sell it, and warrants that no other party has a claim on the property. This assurance includes that the property is free from outstanding debts, such as mortgages or judgments, that could affect the buyer's ownership. Therefore, the buyer can be confident that they are receiving a clear title, which protects their investment and ownership rights. In contrast, other options present scenarios that the warranty deed does not guarantee. While "as is" sales might reflect a situation where the buyer accepts the property in its current condition, this is not addressed by a warranty deed. The existence of a warranty deed does not provide guarantees regarding floodplain status or compliance with local codes, as those are separate concerns that would need to be verified through other means, such as inspections or municipal inquiries.