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What is a Warranty Deed for Real Estate?

A warranty deed is a legal document that is used to transfer ownership of real estate from one person to another. It is considered one of the most secure forms of real estate conveyance because it offers specific guarantees to the new owner, known as "warranties." Understanding what a warranty deed is and how it works can be important for anyone buying or selling real estate.

A warranty deed is a written document that contains specific promises or guarantees made by the seller (the grantor) to the buyer (the grantee). The key feature of a warranty deed is that it guarantees the buyer that the property being sold is free and clear of any encumbrances, such as mortgages, liens, or other debts. This means that if any issues arise with the property's title, the seller is liable to the buyer for any damages.

Warranty deeds are divided into different types based on the level of protection offered. A General Warranty Deed offers the most comprehensive protection, as it includes several types of warranties, including:

  • A warranty of title: The seller guarantees that they have a clear and marketable title to the property and that they have the right to sell it.

  • A warranty of quiet enjoyment: The seller guarantees that the property will not be disturbed by any adverse claims or liens.

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