A warranty deed is a legal document used in real estate transactions to transfer ownership of a property from the seller (grantor) to the buyer (grantee). It guarantees that the seller holds clear title to the property, has the legal right to sell it, and that there are no outstanding liens, debts, or legal claims against the property that could affect the buyer's ownership
. Key features of a warranty deed include:
- A description of the property being transferred.
- A guarantee by the seller that the title is free of encumbrances such as liens, mortgages, or ownership disputes.
- The seller's promise to defend the buyer against any future claims to the title, even for issues arising before the seller owned the property
There are two main types of warranty deeds:
- General warranty deed: Provides the buyer with full protection, covering the entire history of the property, and the seller guarantees to compensate the buyer if any title issues arise at any time
- Special (or limited) warranty deed: The seller only guarantees that no title problems occurred during their period of ownership and makes no promises about issues before that time
Warranty deeds are typically signed at closing, notarized, and recorded in the local county records to make the transfer official and public
. They are often required by lenders when financing a property purchase and provide important assurance to buyers that they will receive clear ownership without hidden claims
