What is a Warranty Deed?

What is a Warranty Deed?

A warranty deed is a legal document used in real estate transactions to transfer ownership of a property from one party (the grantor or seller) to another (the grantee or buyer). This type of deed provides certain assurances or guarantees regarding the property’s title and ownership.

Here are the key features of a warranty deed:

1. Title Guarantee: A warranty deed typically includes covenants or promises from the seller that they have clear and marketable title to the property. This means that the seller asserts they own the property free and clear of any liens, encumbrances, or title defects, except those specifically disclosed in the deed.
2. Defense Against Claims: The seller agrees to defend the buyer against any claims or challenges to the property’s title that may arise after the sale, including claims from previous owners or third parties.
3. Quiet Enjoyment: The seller guarantees that the buyer will have undisturbed and peaceful possession of the property without interference from others claiming an interest in the property.
4. Covenant of Further Assurance: The seller promises to take any additional actions necessary to perfect or ensure the buyer’s title to the property, such as providing additional documentation or correcting any defects in the title.

Warranty deeds are commonly used in real estate transactions to provide buyers with greater assurance and protection regarding the property’s title. They are often contrasted with quitclaim deeds, which offer no warranties or guarantees regarding the property’s title and are typically used in situations where the transfer of ownership is less certain or where the parties are already familiar with each other’s interests in the property.