Warranty Deed

Warranty Deed

A warranty deed is a legal document used in real estate transactions that guarantees the seller has clear title to the property and the right to sell it. This type of deed provides the highest level of protection for the buyer because it includes a formal promise that the property is free from any liens or encumbrances, except those specifically stated in the deed.

The warranty deed typically contains several key components:

1. Grantor and Grantee Information: The document identifies the seller (grantor) and the buyer (grantee).

2. Legal Description of the Property: A precise legal description of the property being transferred is included, which may consist of a parcel number and a description based on a survey.

3. Covenants: The warranty deed includes specific covenants or promises made by the grantor. These typically include:

   • Covenant of Seisin: The grantor affirms they own the property and have the right to convey it.
   • Covenant Against Encumbrances: The grantor guarantees that the property is free from any encumbrances, such as mortgages or liens, except those disclosed.
   • Covenant of Quiet Enjoyment: The grantor assures that the grantee will not be disturbed in their possession of the property.
   • Covenant of Warranty Forever: The grantor promises to defend the title against any claims.

4. Signatures: The deed must be signed by the grantor, and in many jurisdictions, it should be notarized to be legally enforceable.

5. Recordation: Once executed, the warranty deed is typically recorded in the county clerk’s office where the property is located. This provides public notice of the property transfer and protects the grantee’s ownership rights.

For example, if John sells his house to Sarah using a warranty deed, he guarantees that there are no existing claims against the property, allowing Sarah to take possession without fear of disputes regarding ownership. If a third party later claims they have a right to the property, John is obligated to defend Sarah’s title based on the promises made in the warranty deed.