What is the difference between a warranty deed and a quitclaim deed in NY?

• A. A warranty deed conveys any interest the grantor holds, with no covenants
• B. A warranty deed conveys only the grantor's interest and has no covenants
• C. A quitclaim deed guarantees a clear title and fixes defects
• D. A warranty deed provides covenants of title; a quitclaim deed conveys only the interest the grantor has, with no warranties

Answer: (D)

In real estate transfers in New York, the key idea is what protections come with the transfer of title. A warranty deed includes covenants of title—promises that the grantor actually owns the property, that there are no undisclosed encumbrances, and that the title will be defended against any claims. It often covers multiple assurances, so the grantee has strong protection if title problems show up later.

A quitclaim deed, on the other hand, conveys only whatever interest the grantor has at the time of transfer and carries no warranties about the title or any encumbrances. If a defect or competing claim appears, the grantee cannot rely on the grantor for protection because there are no covenants included in a quitclaim deed.

So, the correct distinction is that a warranty deed provides covenants of title, while a quitclaim deed conveys only the grantor’s interest with no warranties. The other conceptions—such as a warranty deed with no covenants or a quitclaim guaranteeing a clear title—aren’t accurate reflections of how these deeds function in NY.