Which guarantee does a buyer receive that the seller has the right to dispose of the property, will provide further assurance at their own cost, and that the title is free from encumbrances except for those the seller does not know or has already disclosed?

• A. Full Guarantee
• B. Limited Guarantee
• C. No Guarantee
• D. Special Guarantee

Answer: (A)

This tests understanding of the level of title guarantee given by the seller in a property sale. A full title guarantee is the strongest form of protection: the seller asserts they have the right to dispose of the property, will provide further assurances at their own cost to perfect the buyer’s title, and the title is free from encumbrances except for those the seller does not know about or has already disclosed. This gives the buyer robust protection against hidden defects and ensures the seller bears costs to cure any title issues. By contrast, a special guarantee would limit protection to defects arising during the seller’s ownership, a limited guarantee offers less protection, and no guarantee provides none. So the description fits a full guarantee.