Warranty Deed
A warranty deed is a legal document that protects the buyer in a real estate deal. It is used to transfer real property with a full guarantee that the property has a clear title and the seller has the right to sell it.
What is a warranty deed?
Property ownership is a dream for many—but you want to know what you’re getting. A warranty deed gives you that peace of mind by making the seller legally responsible for any problems with the title. The seller promises that they legally own the property, that it is free from any title claims or outstanding liens, and that they have the right to transfer it. If it turns out there are title issues, the seller is responsible for fixing them.
There are two types of warranty deeds:
- A general warranty deed (and its shorter-form relative, the statutory warranty deed) covers the property’s entire history, even before the seller owned it.
- A limited warranty deed (also called a special warranty deed) only covers issues from the period when the previous owner owned the property, not before.
Key features of a warranty deed include:
- A clear, legal description of the property
- The names of the buyer and seller
- A legal guarantee (or warranty) from the seller
- Notarized signatures of all parties involved
Warranty deeds are often used in traditional home sales. They’re also used in commercial real estate transactions and when transferring property without exchanging money.
FAQs
What's the difference between a quitclaim deed and a warranty deed?
A warranty deed guarantees that the seller has full legal right to the property and there are no title claims. A quitclaim deed makes no promises about a clear title. Quitclaim deeds are often used between people who already trust each other, like family members.
Is a warranty deed proof of ownership?
A warranty deed shows that the seller has the legal right to transfer the property to the new owner. Once the deed is recorded with the county, it becomes public record and helps confirm ownership rights.
Is a warranty deed the same as title insurance?
No—a warranty deed is a legal promise from the seller that the property title is clear. A title insurance policy, on the other hand, protects the buyer (and sometimes other parties involved, like the lender) from hidden title defects that weren’t found during the title search.
Is a warranty deed legally binding?
Yes, a warranty deed is a legal document and is binding once it’s signed, notarized, and delivered to the buyer. If the seller’s promise of a clear title turns out to be false, the buyer can take legal action.
Do you need a lawyer to write a warranty deed?
You don’t always need a lawyer to write a warranty deed. If no money is being exchanged, you can use a property deed service. If you’re selling a property, however, it’s a smart move to contact a lawyer, escrow company, or title company.