Warranty Deed

This is a template used to create and fill-out a Warranty Deed Form which is a document between a borrower and a lender containing details of the loan for record and tracking of payment.

What is a warranty deed?

A warranty deed gives the grantee a warranty or guarantee that the grantor does actually have legal title to the property. The seller who is the grantor is promising the buyer that he owns the property and has the right to sell it.

Note that recording is not a requirement for a warranty deed but if recording is going to be done, the document must be acknowledged. Warranty deeds are kind of a big deal because they provide the buyer with title protection from the seller in addition to guaranteeing their ownership of the property.

The seller warrants that the property is free of encumbrances except those noted in the deed itself which can be things like easement zoning restrictions and subdivision deed restrictions and the protections and warranty deeds are granted whether the seller and the buyer individuals or businesses. 

This is why general warranty deeds and special warranty deeds are both good options for real estate sales where commercial or residential properties are transferred between parties who don’t know each other. Ownership is transferred from seller to buyer with certain guarantees against future problems or claims which protect the buyer against fraud.

Warranty deeds guarantee to the buyer that the seller owns the title that the seller is legally allowed to sell the property that the property has not already been sold that the property is free of debts or other claims and that the seller is responsible for any faults with the property.

With the general warranty deed, the grantor is responsible for any breach of warranties and guarantees even if the breach occurred without their knowledge or during a period when the grantor did not own the property that’s what makes a general warranty deed so great the seller is guaranteeing that there are no issues with the title going all the way back to the original land grant and if any problems do crop up the grantee can sue the grantor for breach and warranty. This obviously puts a greater amount of risk on the seller so title insurance is used in most transactions to help guard against possible claims and liens before a title company will provide insurance for a title. They will conduct a full title search and explore any other possible breaches. This gives the buyer extra peace of mind as both the seller and the title company have verified that title to the property looks clean.

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