A warranty deed is a legal document used in real estate transactions to transfer ownership of a property from one party to another. It provides a guarantee, or warranty, that the seller (also known as the grantor) has clear and marketable title to the property and has the right to sell it.
When a seller conveys a property using a warranty deed, they make certain promises to the buyer (also known as the grantee). These promises include:
Covenant of seisin
The seller guarantees that they own the property and have the legal right to transfer it.
Covenant of right to convey
The seller promises that they have the authority to sell the property and that the title is free from any encumbrances or restrictions that could prevent the transfer.
Covenant against encumbrances
The seller guarantees that there are no undisclosed encumbrances on the property, such as mortgages, liens, or easements, except those that have been specifically stated in the deed.
Covenant of quiet enjoyment
The seller promises that the buyer’s ownership of the property will not be disturbed by any third-party claims or legal issues arising from before the sale.
Covenant of warranty
The seller agrees to defend the buyer against any claims to the property’s title that may arise in the future.
A warranty deed provides the highest level of protection for the buyer because it offers assurances regarding the title. In case any issues with the title arise later, the buyer can typically seek legal recourse against the seller.
It is important to note that warranty deeds are typically used in traditional real estate transactions, and the specific requirements and legal implications may vary depending on the jurisdiction. It is advisable to consult with a real estate attorney or legal professional for guidance specific to your situation.