Warranty Deed

A warranty deed is a type of deed that provides the grantee with a warranty against any defects in the title to the property. This means that the grantor (seller) promises that they have good and marketable title to the property and that they will defend the grantee's title against any and all claims.

Warranty deeds are typically used in real estate transactions, and they are often required by lenders in order to secure a mortgage loan. There are two main types of warranty deeds: general warranty deeds and special warranty deeds.

A general warranty deed provides the grantee with the broadest possible warranty against defects in the title. The grantor promises that they have good and marketable title to the property and that they will defend the grantee's title against any and all claims, including claims that arise after the sale of the property.

A special warranty deed provides the grantee with a more limited warranty against defects in the title. The grantor promises that they have good and marketable title to the property at the time of the sale, but they do not promise to defend the grantee's title against claims that arise after the sale.

Warranty deeds are important because they provide the grantee with a certain level of protection against defects in the title to the property. However, it is important to note that warranty deeds do not provide the grantee with absolute protection. There are certain types of defects in the title that even a warranty deed cannot protect against.

For example, a warranty deed will not protect the grantee against a claim by a third party who has a superior right to the property. This could happen if, for example, the grantor sold the property to two different people. In this case, the second buyer would have a superior right to the property and the first buyer would have to give up their interest in the property.

Warranty deeds are an important part of real estate transactions, but it is important to understand their limitations before using one. If you are considering using a warranty deed, it is important to speak with an experienced real estate attorney to make sure that you understand your rights and obligations under the deed.