Warranty Deed
Alternate Names:
A Warranty Deed is also known as a:
- Special Warranty Deed
- General Warranty Deed
- Deed of Guarantee
What is a Warranty Deed?
A Warranty Deed is a document that guarantees that the title to a property is free from any interests held by others, such as liens. In other words, the grantor (seller) of the property is ensuring that the property is completely clear, as in creditors will not use the property as collateral for the grantor's debt, as an example.
When should I use a Warranty Deed?
Warranty Deeds are generally used for residential home sales between unrelated parties, so that the buyer can ensure that the property is free and clear. In other words, if a buyer wants to be absolutely sure that they will have full ownership rights to the property, requesting a Warranty Deed is a good idea.
Alternatively, the seller could present a Warranty Deed as part of the sale to show proof that they have absolute rights to the title of the property.
What is the difference between a Warranty Deed and a Quitclaim Deed?
A Quitclaim Deed only states the interest the grantor (the person who is transferring the property to someone else) has in the property, and does not guarantee that the property is free from interests held by other people.
A Warranty Deed ensures that the title to a property is free from liens, debts, and any other interests that could be held by others.
A Quitclaim Deed is generally used to transfer real estate between known parties, such as family members or spouses, where the extra layer of protection that a Warranty Deed provides may not be needed.
For instance, if the owner of a property has divorced, they could use a Quitclaim deed to remove their former spouse's name from the property title, and add the new spouse's name (if applicable).
What is the difference between a Warranty Deed and a Deed of Trust?
A Warranty Deed simply guarantees that the title of a property is free from any interests held by others at the time of the property sale. A Deed of Trust ensures neutrality between a borrower and lender by adding a neutral third party to the transaction, called a trustee (usually a separate legal entity like a title company).
In a transaction where a Deed of Trust is used, a lender is loaning money to a borrower so that the borrower can purchase a property. However, a Deed of Trust transfers ownership of the legal title to the property to a neutral trustee until the borrower completely pays off the loan.
Related Documents:
Frequently Asked Questions:
Warranty Deed FAQ