Warranty Deed

What is Warranty Deed?

A warranty deed is a document often used in real estate that provides the greatest amount of protection to the purchaser of a property. It pledges or warrants that the owner owns the property free and clear of any outstanding liens, mortgages, or other encumbrances against it. The two parties involved in a warranty deed are the seller or owner, also known as the grantor, and the buyer or the grantee. Either party can be an individual or a business, and are often strangers to each other. There are different types of deeds such as the warranty deed, special warranty deed, and the quitclaim deed. The difference between these deeds is usually defined by what warranties and covenants are being conveyed from the seller to the buyer.

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What are included?

A deed is an important legal document that transfers property from one entity to another—often in the case of a real estate deal. A general warranty deed provides the buyer with the highest form of protection. Warranty deeds are often put in place when a buyer is trying to get financing for a mortgage or title insurance. All deeds contain: - The date of the transaction - The names of the parties involved - A description of the property being transferred - The signatures of the buyer. - Deeds may need to be signed in the presence of a witness and/or notary.

KEY TAKEAWAYS

- A warranty deed is a document often used in real estate that provides the greatest amount of protection to the purchaser of the property. - The deed pledges or warrants that the owner owns the property free and clear of any outstanding liens, mortgages, or other encumbrances. - The grantor is responsible for a breach of any warranties and guarantees, therefore placing a great amount of risk upon the grantor.