Warranty Deed - Explained
What is a Warranty Deed?
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What is a Warranty Deed?
In real estate, buying and selling of a property is incomplete with a warranty deed. A warranty deed involves the seller and the owner (buyer) of a property, they are otherwise called the grantor and the grantee respectively. A warranty deed is a document that grants the owner (buyer) of a property ownership to the property without any limitations or restrictions. This represents the highest form of protection that an owner enjoys. The seller guarantees that the property has been sold to the owner and all titles and rights of the property are held by the owner.
What is Included in a Warranty Deed?
Simply put, a warranty deed is a document in which a seller pledges that a property has been transferred to another party and all rights are held by the party. A warranty contains three major points, these are;
- An assurance from the grantor that the property is owned by him and he has the right to transfer or sell the title to another party.
- A guarantee that there is no lien placed on the property and there are no unsettled claims to the property.
- A guaranteed that the buyer (grantee), now the owner claims ownership of the property and that the grantee now claims title to the property.
In a warranty deed, when a breach of the guarantees outlined in the deed occurs, the grantor is held responsible. While the warranty deed offers maximum protection to the grantee (the owner of the property), the grantor has a greater responsibility in ensuring that there is no breach of the guarantees contained in the warranty deed.
Special Warranty Deed
A warranty deed is a comprehensive version of a special warranty deed. A special warranty deed is not as detailed as a warranty deed, it is commonly used for commercial real estate. Contained in a special warranty deed are;
- The grantor guarantees that there are no liens or hindrances on the property during the period which the granter held the property.
- The grantor has title to the property.
Just like other warranty deeds, a special warranty deed contains accurate information about the property and the grantee of the property. It is a legal document that contains the description of the real estate property and other details.