Statutory Warranty Deed

Statutory Warranty Deed

A Statutory Warranty Deed is a legal document used in real estate transactions that provides a guarantee from the seller (grantor) to the buyer (grantee) regarding the title of the property being transferred. This type of deed offers the highest level of protection for the grantee, as it assures them that the grantor holds clear title to the property and has the legal right to sell it.

The Statutory Warranty Deed contains specific covenants, or promises, made by the grantor. These typically include:

1. Covenant of Seisin: The grantor promises that they own the property and have the right to convey it.

2. Covenant Against Encumbrances: The grantor guarantees that the property is free from liens or other encumbrances, except those explicitly stated in the deed.

3. Covenant of Quiet Enjoyment: The grantor assures that the buyer will not be disturbed in their possession of the property by someone claiming a superior title.

4. Covenant of Warranty: The grantor agrees to defend the title against any claims made by others and compensate the buyer for any losses incurred due to title defects.

A Statutory Warranty Deed is often preferred by buyers because it protects their investment and provides legal recourse if any title issues arise after the transaction. For example, if a previous owner of the property had unpaid taxes that create a lien, the buyer could seek compensation from the grantor under the warranty provisions of the deed.

In practical use, a Statutory Warranty Deed is commonly utilized in residential property sales and is regulated by state law, which defines its form and content.