{"id":6042,"date":"2024-10-11T07:56:43","date_gmt":"2024-10-11T11:56:43","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6042"},"modified":"2024-10-11T07:56:45","modified_gmt":"2024-10-11T11:56:45","slug":"when-do-you-need-a-warranty-deed","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/when-do-you-need-a-warranty-deed\/","title":{"rendered":"When Do You Need a Warranty Deed?"},"content":{"rendered":"\n
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Sometimes it\u2019s best to use a warranty deed<\/a> to transfer property. It\u2019s common whenever there\u2019s a seller and buyer who didn\u2019t know each other before their deal. In fact, a mortgage lender or insurance company could insist on a transfer by warranty deed. But why?<\/p>\n\n\n\n

A warranty deed transfers a title with certain protections. This is in contrast to a quitclaim deed, which may be perfect when (a) both parties know each other, and (b) the person who transfers the deed originally got the property with a warranty deed.<\/p>\n\n\n\n

A warranty deed promises a buyer that the seller owns the property, and has full rights to transfer the title. In a nutshell: anyone involved with the transaction or financing can rest assured the title is clear.<\/p>\n\n\n\n\n\n\n\n

What the Warranty Does for the Buyer<\/h2>\n\n\n\n
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If you are buying or selling a home, you\u2019ll typically get or give a warranty deed.<\/p>\n\n\n\n

The warranty ensures that the buyer gets a property unburdened by liens for someone\u2019s past debts. It asserts that the boundary is good, and no one else can claim a part of the land. There are no additional owners waiting in the wings. There are no unpaid mortgages, no lines of credit secured by the property.<\/p>\n\n\n\n

Sellers can be wrong about some of their promises. If a title turns out to be compromised, and the buyer learns this after closing on the home, then what?<\/p>\n\n\n\n

Then the buyer can sue the seller for a breach of the warranty\u2019s specific covenants. Buyers look for that protection, and a buyer\u2019s agent typically insists on it.<\/p>\n\n\n\n

Still, a warranty deed has a shelf life. More on this below. To extend their peace of mind, many home buyers decide to get owner\u2019s title insurance<\/a> at closing. It\u2019s a backup measure, just in case the title has issues earlier owners might not have even known about. In short, it can make good sense to get both a warranty deed and the optional owner\u2019s title insurance.<\/p>\n\n\n\n

We invite you to learn more about home title protection<\/a> on Deeds.com. <\/em>Now, let\u2019s look at the nuts and bolts of the warranty deed.<\/p>\n\n\n\n

How to Create a Warranty Deed for a Home Purchase<\/h2>\n\n\n\n

Real estate agents traditionally help their clients through the transfer process. While you may independently download and complete a warranty deed form<\/a>, you may want to hire a real estate attorney to draft, or at least review, your deed.<\/p>\n\n\n\n

Your deed names the people, identifies the property by its legal description, and \u201cgrants and conveys\u201d the property as of a specified date. The deed states the full, legal names of the seller (called the \u201cgrantor\u201d on a deed) and the buyer (the \u201cgrantee\u201d). It should state how the buyers, if there are more than one, want the property vested<\/a>.<\/p>\n\n\n\n

As for the property description, the new deed should match the current deed. An accurate property description would guide a surveyor<\/a> to find and identify the property with precision. Your deed may refer to a recorded plan for a subdivision. A metes and bounds<\/em> description defines a property outside of subdivisions.<\/p>\n\n\n\n

A deed should also:<\/p>\n\n\n\n