Warranty Deed

(redirected from Warranty Deeds)
Also found in: Financial, Encyclopedia.

Warranty Deed

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.

Cross-references

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

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

warranty deed

n. a deed to real property which guarantees that the seller owns clear title which can be transferred (conveyed). A "grant deed" generally is a warranty deed, while a "quit claim deed" is not. (See: warrant, grant deed)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
(9) For example, consider a warranty deed to one spouse's revocable trust by married Michigan residents.
The warranty deed for the 40 acres shows that the Skinners gave the land to the county for $1 under the condition that the land be used for a public square, and that a "courthouse be built in the center of said Square."
Lot 26, Block 40, Centennial Addition 10 the City of Little Rock, Pulaski County, Arkansas The properties described herein were conveyed to Esterosto, LLC by Limited Warranty Deeds issued pursuant to tax sales conducted by the Commissioner of State Lands, State of Arkansas under the provisions of Act 626 of 1983, as amended, after the property remained unredeemed following expiration of the time required by law
The properties described herein were conveyed to Petitioner, Esterosto, LLC, via Limited Warranty Deeds issued pursuant to lax sales conducted by the Commissioner of State Lands, State of Arkansas under the provisions of Act 626 of 1983, as amended, after the property remained unredeemed following expiration of the time required by law.
For example, easements can be encumbrances, despite the property value not being diminished in any way.(64) As stated earlier, the covenant against encumbrances is a part of general warranty deeds.(65) If an encumbrance exists when the conveyance of the property is effectuated, then the covenant has been broken.(66) "[T]he covenant against encumbrances protects the covenantee, its successors and assigns, against rights or interests in the property conveyed which subsist in third persons and diminish the value of the estate even though they are consistent with the passage of the fee in the estate."(67) Just as determining whether an encumbrance exists is difficult, it follows that discovering whether there has been a breach of the covenant against encumbrances is also a difficult task.
They review their general warranty deed and sale contract, confident their grantor had warranted against such a situation.
The properties described herein were conveyed to Petitioner, Esterosto, LLC, via Limited Warranty Deeds issued pursuant to tax sales conducted by the Commissioner of State Lands, State of Arkansas under the provisions of Act 626 of 1983, as amended, after the property remained unredeemed following expiration of the time required by law.
The property described herein was conveyed to Esterosto, LLC via a Limited Warranty Deed issued pursuant to tax sales conducted by the Commissioner of State Lands, State el Arkansas under the provisions of Act 626 of 1983, as amended, after the property remained unredeemed following expiration of the time required by law.
via Limited Warranty Deeds issued pursuant to tax sales conducted by the Commissioner of State Lands, State of Arkansas under the provisions of Act 626 of 1983 as amended after the property remained unredeemed following expiration of the time required by law Haybar Inc., subsequently transferred title to Petitioner, Esterosto, LLC.
via Limited Warranty Deeds issued pursuant to tax sales conducted by the Commissioner of State Lands, State of Arkansas under Die provisions of Act 620 of 1983, as amended, alter the property remained unredeemed following expiration of the time required by law Haybar, Inc.
Lot 26, Block 40, Centennial Addition to the City of Little Rock, Pulaski County, Arkansas The properties described herein were conveyed to Esteroste, LLC by Limited Warranty Deeds issued pursuant to tax sales conducted by the Commissioner of State Lands, State of Arkansas under the provisions of Act 626 of 1983, as amended, after the property remained unredeemed following expiration of the time required by law
In fact, Benton County warranty deeds indicate that lots sold in the early 1980s went for the same price in 2003.