The warranty deed is a legal document that demonstrates guarantees or declarations that the owner officially possesses the property and there are no existing obligations, foreclosures, or other financial burdens against it.
This deed offers the best security to the buyer so that they do not get scammed. A warranty deed also serves as an assurance of title which implies that if the grantee discovers a fault in the title, the seller may be held accountable for damages.
Types of Warranty Deed
We can categorize these deeds of the warranty into two types-
- General (mortgage assertion, late fee, title claim, discernment, or mechanic's lien)
- Special (the grantor promises to the grantee that he has done nothing at all to damage the grantee's rights in the future while he has possessed rights to the property)
A general warranty deed not just transfers to the assignee all of the grantor's involvement in and title to the asset, but it also ensures that the grantee can maintain the grantor liability if the title is flawed or unclear.
On the other hand, a special warranty deed transfers the grantor's ownership to the grantee and ensures the grantee's protection regarding title issues or complaints alleged by the grantor and any people whose authority to raise a claim against the title emerged during the grantor's rightful ownership.
Use of the Term in Sentences
- A warranty deed is considered a good option in terms of protecting any property.
- Buyers of any property can bank on warranty deeds to get guaranteed that the property they are buying is legit.