If you are looking to purchase real estate, a warranty deed is an essential document. It offers buyers a legal guarantee that the property is free of any claims or encumbrances and can be transferred easily.
The deed should include specific information on the property being transferred, including a legal description. This will ensure that everyone understands the specific property being transferred.
What is a Warranty Deed?
A Warranty Deed is a legal document that guarantees the title of a property is clear and there are no liens, mortgages or other issues that may prevent the buyer from owning it. It is typically used in real estate transactions, and can be obtained through a local realtor or real estate attorney.
There are several different types of warranty deeds, including a special warranty deed and a general warranty deed. A general warranty deed is the most common and provides the grantee with the highest level of protection against a wide variety of possible claims that may arise from a title defect.
A general warranty deed contains six covenants for title that are traditionally derived from English Common Law. These include the Covenant of Seisin, the Covenant Against Encumbrances and the Covenant of Quiet Enjoyment. It also includes a Covenant of Further Assurances that guarantees the grantor will take actions to fix any title problems that could potentially arise from someone else’s claim on the property.
Purpose of a Warranty Deed
When purchasing a piece of real estate, it is important to have an official document that guarantees you will receive the property free of encumbrances and any other issues. A warranty deed is the document that gives this assurance to buyers and sellers.
Buying a house is one of the biggest investments you will make in your lifetime, so it’s important to have this document in place to ensure you won’t have any title issues come up. Usually, a warranty deed will be required when you apply for a mortgage or purchase title insurance.
There are a few different kinds of warranties, including general warranty deeds and special warranty deeds. In general, the type of warranty you choose depends on your situation and how much risk you want to take on as a buyer. A general warranty deed offers almost absolute assurance that the property is clear of any and all encumbrances that might have existed from the date the property was legally created to the day it is being transferred to you.
Obtaining a Warranty Deed
A warranty deed is one of the most important real estate documents used during property transfers. It guarantees that the property is free from liens, encumbrances, judgments and outstanding mortgages.
Typically, the buyer of a property is called a grantee. The grantor is the seller and he/she promises that they own the property free from encumbrances.
To obtain a warranty deed, you can go to a real estate office or use a template online. Afterward, you’ll need to have it notarized and file it at the county recorder’s office.
While it may seem like a simple document, it is a crucial contract that ensures your property title withstands future claims and third-party lawsuits. This is especially true when buying a home, which probably represents your largest investment of both money and emotional capital.
Using a Warranty Deed
A warranty deed is an important tool for buyers, mortgage lenders and real estate agents to use in property transfers. It offers maximum ownership protection for buyers by ensuring that the buyer will never encounter liens or other claims on the property.
It can also be used as a template for sellers who wish to convey property ownership to a trust. A warranty deed is often a requirement for the sale of a home and can be obtained by a real estate lawyer, or through an online service provider that offers downloadable templates.
There are two main types of warranty deeds that change hands between grantors and grantees: a general warranty deed and a special warranty deed. Each type offers different levels of protections to the buyer and risk to the seller.
