A Special Warranty Deed

question 3

Multiple Choice

A special warranty deed:

• A)cures the defect in the chain of title to property.
• B)means that the grantor offers a unique warranty against all defects in the title and all encumbrances.
• C)implies that the grantor warrants against all liens and easements.
• D)means that the grantor warrants against only those defects in the title that arose after he/she acquired the property.

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Definitions:

Government Bailouts

Financial support provided by a government to prevent the bankruptcy of a failing business or sector, aiming to stabilize the economy.

Coase Theorem

a principle that asserts that in the absence of transaction costs, parties can negotiate solutions to externalities among themselves, regardless of the initial allocation of property rights.

Externalities

Economic side effects or consequences of commercial activities that affect other parties without being reflected in the cost of the goods or services involved.

Adverse Selection

A situation in markets where buyers and sellers have different information, leading to transactions where one party may be disadvantaged.