The Warranty Deed

The Warranty Deed is the most secure deed and should be used in all real estate transactions. When signed the seller is guaranteeing there are no title problems on the land being sold.

General Purposes And Effects of the Warranty Deed

This warrants or guarantees the property from the original owner to the time of sale. The buyer receives this guarantee from the seller. Most real estate transactions are insured by title insurance so that becomes the main protection to the buyer. In this case the title insurance company has the right to go against the seller in the event of title problems.

When is this Deed Used

This deed is the standard in real estate transactions. If the seller wants to use a different Deed consider this a red flag of possible title problems. If you are buying, insist on a this Deed or do not complete the transaction. An exception to this might be government agencies and large corporations which have a policy of using Special Warranty Deeds.

How They Affect Real Estate Buyers

This deed gives the buyer the greatest amount of protection. The seller guarantees the property is free and clear of any title problems or liens, except those listed on the deed.

How They Affect Real Estate Sellers

When a seller signs this deed they are guaranteeing there are no title problems, loans or liens on the property, except those spelled out in the deed. This includes title problems the seller is not aware of. If a title company insures the property they have the right to come against the seller to resolve title problems that existed before the time of sell.