Define: Warranty Deed

A Warranty Deed is a legal document used in real estate transactions to transfer ownership of property from one party to another. It contains guarantees or warranties from the seller (grantor) that they have clear title to the property and can legally transfer it to the buyer (grantee).

Some of the key features of a Warranty Deed include:

• Clear identification of the parties involved (grantor and grantee).
• Detailed legal description of the property being transferred.
• Guarantee from the seller that they have lawful ownership of the property and the right to sell it.
• Promise to defend the title against any claims or challenges to ownership.
• Typically includes covenants of seisin, against encumbrances, and for quiet enjoyment.

Unlike a Quitclaim Deed, which offers no guarantees about the title, a Warranty Deed provides extensive assurances regarding the property’s title. It offers greater protection to the buyer by warranting against defects in title, including those that occurred before the seller acquired the property.

Some of the typical warranties included in a Warranty Deed are:

• Covenant of seisin: Assurance that the seller owns the property and has the right to convey it.
• Covenant against encumbrances: Assurance that the property is free from liens or encumbrances except those explicitly stated in the deed.
• Covenant for quiet enjoyment: Assurance that the buyer will not be disturbed in their possession or enjoyment of the property due to third-party claims.

Both the buyer (grantee) and the seller (grantor) benefit from a Warranty Deed. The buyer receives assurances about the property’s title and protection against future claims, while the seller demonstrates confidence in the title’s validity and may attract more buyers by offering such assurances.

A Warranty Deed is commonly used in real estate transactions where the buyer seeks comprehensive assurances regarding the property’s title. It is often employed in residential sales, commercial transactions, and when obtaining financing from lenders who require clear title.

No, a Warranty Deed is not always required. The choice of deed depends on the agreement between the parties involved and the preferences of the buyer and seller. In some cases, such as transfers between family members or transactions involving known risks, other types of deeds may be used.

A Warranty Deed is typically prepared by a real estate attorney or title company and signed by the seller (grantor) in the presence of a notary public. Once signed, it is recorded in the county or jurisdiction where the property is located to provide public notice of the transfer of ownership.

Yes, a Warranty Deed can be challenged after the sale if the buyer discovers defects in the title or if the seller breached any of the warranties provided in the deed. In such cases, the buyer may have legal recourse against the seller for damages or to compel them to fulfil their warranties.

It is advisable to consult a real estate attorney before using a Warranty Deed, especially if you are unfamiliar with real estate transactions or if there are complexities involved. An attorney can ensure that the deed accurately reflects the parties’ intentions and provides adequate protection for the buyer.