A buyer should always do their due diligence however and conduct a If a deed contains an error, another party could potentially have a claim to that same property.Ī warranty deed offers a buyer the guarantee that they will own the property free and clear and if there is a title issue, the seller will be held liable. “…said property is free and clear from all liens and encumbrances except as herein set forth, and except for taxes due for the current and subsequent years, and except for restrictions or easements of record and that the Grantor shall warrant and defend the same to said Grantee…”įor more information on what should be included in a deed,Ī warranty deed by itself does not prove ownership of a property and it is necessary to also have evidence of title of the property. Like the amount of money paid for the property, or language that shows that the property was gifted to the grantee.Ī warranty deed, specifically, should also include language that makes a guarantee that the title to the property is clear. That shows the seller is granting the property to the buyer. Which should include property lines, roads, sewer lines, and any other defining characteristics. Warranty deeds are most commonly used when buying a house or property from a person you do not personally know.Įach state will have its own requirements for what needs to be included in a warranty deed, however, there is basic information that is common to have on any warranty deed. Guarantees that the buyer will have the right to quiet possession of the property and will not be inconvenienced by a defective title.Īssures that the grantor will provide any documents necessary to make sure the title is legitimate. These warranties include:Īssures that the seller owns the property and can legally sell it.Īssures the buyer that the property is free from liens unless specifically stated in the deed. When executing a warranty deed, the seller is required to make legally binding promises, or covenants, and warranties to the buyer. A warranty deed is also usually required to secure financing or title insurance for the purchase of a property. The purpose of a warranty deed is to protect the buyer when purchasing real property. This type of deed poses a risk for a buyer because they will have no legal protection for any potential title issues that could arise after the real estate transaction is complete. This means that the seller is not liable for any title issues that could have happened before they took ownership. These can easily be confused with a general warranty deed however, a special warranty deed does not offer the same protection to buyers.Ī special warranty deed only guarantees that there are no encumbrances on the property for the period of time the seller had the property tile in their name. In most cases, in order for a buyer to get financing to purchase a home, the title needs to be clear, and a warranty deed must be used in the transaction.įor more information about warranty deeds, In the future if there is a title issue, the seller is liable for all legal issues.Ī warranty deed is most commonly used deed in residential real estate. The title will withstand third-party claims to ownership of the property. The seller has the legal right to sell the property. The seller is the legitimate owner of the property and holds a clear title to the property. To execute a warranty deed, the seller of the property must make certain promises to the seller which normally include: Out of all the different types of property deeds, which also include special warranty deeds and quitclaim deeds, the warranty deed provides a buyer with the highest level of protection. When a seller transfers property to a buyer, a warranty deed is used to ensure that the title of the property being transferred is valid and free from any issues. A warranty deed, or general warranty deed as it is sometimes called, is a legal document used in real estate transactions.
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