When can the rights under a warranty deed be questioned?

The correct understanding revolves around the nature of a warranty deed, which provides the highest level of assurance to the buyer regarding the ownership of the property. A warranty deed guarantees that the grantor (the seller) holds clear title to the property and has the right to transfer it, free from any liens or encumbrances, unless explicitly stated otherwise in the deed.

When there are existing liens on the property, the rights under a warranty deed can be questioned because such liens may impact the title's status and the grantor's ability to convey clear title. Liens signify that there are claims against the property, which can include loans, debts, or other obligations that are tied to the property. If a lien exists, it may affect the buyer's ownership rights, and the buyer's ability to enforce or rely on the warranty provided by the deed can be challenged.

Thus, the presence of existing liens alters the validity of the assurances given by the warranty deed about the property’s title and may lead to disputes or legal ramifications for the buyer. This is why questioning the rights under a warranty deed is pertinent in the context of existing liens.