Warranty Deed

Deed conveying the seller's interest in real property to the buyer. The seller, also known as the grantor, certifies that the title on property being conveyed is free and clear of defects, liens, and encumbrances. If a third party claim is not exempted specifically, the buyer (the grantee) may sue the seller for the damages caused by the defective title.

One that contains a Covenant that the Grantor will protect the grantee against any and all claims. Usually contains covenants assuring good Title freedom from Encumbrances and Quiet Enjoyment. See also General Warranty Deed and Special Warranty Deed.
Example: The grantor was willing to give a warranty deed because she was confident that she had good title to the property.

An instrument that transfers real property from one person to another and in which the grantor promises that title is good and clear of any claims.

A deed is a written instrument that transfers the title of property from one person to another. Although many types of deeds exist, title is usually transferred by a warranty deed. A warranty deed provides the greatest protection to the purchaser because the grantor (seller) pledges or warrants that she legally owns the property and that there are no outstanding liens, mortgages, or other encumbrances against it. A warranty deed is also a guarantee of title, which means that the seller may be held liable for damages if the grantee (buyer) discovers the title is defective.

There are two types of warranty deeds: general and special. A general warranty deed not only conveys to the grantee all of the grantor's interest in and title to the property but also guarantees that if the title is defective or has a "cloud" on it, such as a mortgage claim, tax lien, title claim, judgment, or mechanic's lien, the grantee may hold the grantor liable.

A special warranty deed conveys the grantor's title to the grantee and promises to protect the grantee against title defects or claims asserted by the grantor and any persons whose right to assert a claim against the title arose during the period in which the grantor held title to the property. In a special warranty deed, the grantor guarantees to the grantee that the grantor has done nothing during the time he held title to the property that might in the future impair the grantee's title.

A warranty deed should contain an accurate description of the property being conveyed, be signed and witnessed according to the laws of the state where the property is located, and be delivered to the purchaser at closing. The deed should be recorded by the buyers of the property at the public records office, which is usually located in the county courthouse. Recording a deed gives "notice to the world" that a particular piece of property has been sold. Though the grantor guarantees good title in a warranty deed, the deed is no substitute for title insurance because a warranty from a grantor who later dies or goes bankrupt may have little value.

See: Cloud on Title; Property Law; Recording of Land Titles; Registration of Land Titles; Title Search.

Property law
Part of the common law series
Acquisition of property
Gift  · Adverse possession  · Deed
Lost, mislaid, and abandoned property
Alienation  · Bailment  · License
Estates in land
Allodial title  · Fee simple  · Fee tail
Life estate  · Defeasible estate
Future interest  · Concurrent estate
Leasehold estate  · Condominiums
Conveyancing of interests in land
Bona fide purchaser  · Torrens title
Estoppel by deed  · Quitclaim deed
Mortgage  · Equitable conversion
Action to quiet title
Limiting control over future use
Restraint on alienation
Rule against perpetuities
Rule in Shelley's Case
Doctrine of worthier title
Nonpossessory interest in land
Easement  · Profit
Covenant running with the land
Equitable servitude
Related topics
Fixtures  · Waste  · Partition
Riparian water rights
Lateral and subjacent support
Assignment  · Nemo dat
Other areas of the common law
Contract law  · Tort law
Wills and trusts
Criminal Law  · Evidence

A general warranty deed is a type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee (buyer). The guarantee is not limited to the time the grantor owned the property—it extends back to the property's origins. A General Warranty Deed includes six traditional forms of Covenants for Title. Those six traditional forms of covenants can be broken down into two categories: present covenants and future covenants.

Present Covenants

Covenant of Seisin & Covenant of Right to Convey - Covenants that represent the seller's promise that he has title and possession and can validly claim both

Covenant Against Encumbrances - Seller promises that there are no encumbrances, other than those that have been previously disclosed

Future Covenants

Covenant of Warranty and Covenant of Quiet Enjoyment - Covenants that represent seller's promise to protect the buyer against anyone who comes along later and claims paramount title to the property

Covenant of Further Assurances - If seller omitted something required to pass valid title, seller promises to do whatever is necessary to pass title to buyer

Note - Not all states recognizes the Covenant of Further Assurances (e.g. Ohio)

Most people hire someone to perform a title search to determine if there are defects that must be resolved before they purchase real property. They can also purchase title insurance, which covers many types of losses that occur if problems are discovered later, but title insurance raises a number of other legal issues.

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