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Warranty Deed: Legal doc that conveys clear title

Posted on: 29th Jun, 2004 02:35 am
A warranty deed is a legal instrument that is used to transfer the title of a property from one person (grantor) to another (grantee). The most important feature of this deed is that here the grantor promises that the title is clear and free of liens. One major benefit of this deed is that it provides protection to you as the grantor warrants that he/she is the owner of the property and the property is free of outstanding liens.

What are the types of warranty deed?

There are 2 types of warranty deeds used for title transfer. They are:

1. General Warranty Deed:
This legal document guarantees that the grantor (or seller) is the legal owner of the property and no other person has an interest in the property, unless otherwise stated on the deed.

The guarantee offered in the General Deed is not limited to the time the grantor owned property. The grantor can be held liable for any title problems existing before they owned the property, as well as during ownership.

  • How it protects the grantee -
    A General Deed includes 6 types of covenants (agreements between the parties involved) divided into the following categories:

    1. Present Covenant: This represents the grantor's promise that he has legaltitle and possession to the property. The grantor's promise that the title is clear and free of any liens is also part of this covenant.

    2. Future Covenant: This includes the grantor's promise to protect the grantee against any other person claiming title. In some states, this covenant protects the grantor's promise to provide the legal documents necessary to prove that the title passed by the deed is valid.

  • When grantor is held liable -
    If the grantee finds out that someone else owns interest in property that was not listed in the title record, then they have the right to sue the grantor. If there is a defect in property-title such as a tax lien, mortgage claim, judgment, etc, then the grantee or buyer can hold the grantor or seller liable if the defect was not present in the title record.
2. Special or Limited Warranty Deed:

The Special/Limited or Statutory Warranty Deed does not offer as much protection as the General deed.
  • How it protects the grantee -
    The deed conveys grantor's title to the grantee and protects the latter against title defects or claims arising only during the grantor's ownership. The grantor warrants that there are no liens on the property unless otherwise stated on the deed or present in the title record.

    The Special Warranty Deed allows the grantee or buyer to ask the grantor for compensation to fix problems with the property which actually originated during the grantor's ownership in the property if they are guaranteed by the grantor. If a defect in the condition of the property is not warranted in the deed or disclosed prior to closing, then the grantor is not liable for it.

How do you make the deed valid?

The deed should provide the legal description of the property to be transferred. It should be drafted with respect in the state where the property is located. Moreover, the deed should be signed and witnessed by a notary. Check out a sample form given below in the Related References section.

The deed is delivered to the buyer at the time of closing. The buyer then records the deed at the County Recorder's office. The deed should be recorded within the specific period required by state law in order to be valid.

A Warranty Deed offers greater protection than a quitclaim deed. So, whether you're selling property or transferring it to a trust, this kind of deed can serve you the best. When purchasing property, the buyer should supplement the deed by purchasing title insurance policy. Both the deed and the policy can help protect the lender and the buyer against disputes concerning ownership or liens on property.

Related Forum Discussions

Related References

my ex wife wants me to sign a quitclaim deed to refinance one of the loans on the house. but in our divorce agreement she owes me $13,000 when she refinances the house. she dais she will do this when she refinances the other, a much larger loan next fall. but if i give up rights on the home she might say that i already gave up all rights on the house. is there any way to sign the deed over to her so that she can do what she needs to but still keep a legal document that says she has to pay me my money?
Posted on: 15th Dec, 2006 09:33 am
Hi Guest,

Welcome to the forums.

The divorce agreement itself proves that she should pay you the money. So, in case she does not pay, you can legally claim the amount. Even if she denies, she has to pay it as it is stated on the divorce agreement. No need to prepare a separate document. I hope you have a written form of the divorce agreement. Just keep it safe so that in case you need it, you can use it to bring any kind of legal action against her.

Hope this information will help you.

God bless you.

Samantha
Posted on: 15th Dec, 2006 08:30 pm
why don't you ask her to make the payment that you owe at the time when you sign the quit claim deed.
Posted on: 15th Dec, 2006 09:20 pm
My girlfriend and I brought a new home,but in the process our relationship as ended.She still wants to buy the home, how can I relinquish my ownership of this home.
Posted on: 09th Jan, 2007 12:22 am
Sell the home to your girlfriend and then sign over a grant deed to give up your ownership rights on property.
Posted on: 09th Jan, 2007 12:49 am
Hi Jack.

Welcome here.

It's fine if yur girlfriend wishes to buy the home. Now when you sell it, depending upon the home value you may have to pay capital gains tax on the profit, if any. But there is an exemption limit also.

When you sell the home, you need to transfer the title in the buyer's name and to do that, you may need a quit claim/grant deed signed over to her.

Thanks,
James.
Posted on: 09th Jan, 2007 12:58 am
My dad is 88 years old and living in Florida. He owns the home free and clear. There is a Revocable Living Trust and the home is part of the assets. I am concerned that I may have to sell the home should my dad need living assistance. Does a quit claim deed or warranty deed legally give my ownership rights?
Posted on: 10th Jan, 2007 10:20 am
Hi Martha,

Instead of quit claim deed your dad should create a warranty deed as it provides clear title to the property to the other person.

While the trust was created if you were named as successor trustee then you have the power to sell the home without the requirement of it being transferred in your name.

David
Posted on: 10th Jan, 2007 10:34 am
But a successor trustee can only sell property when the person owning the trust property is dead or disabled.
Posted on: 14th Jan, 2007 08:33 am
My husband's company is going to be in ligtigation over a delinquent balance due. If he quit claims our home to me will that prevent the other company from putting a lien on our home?
Posted on: 19th Jan, 2007 08:15 am
Posted on: 19th Jan, 2007 11:03 am
"My husband's company is going to be in ligtigation over a delinquent balance due. If he quit claims our home to me will that prevent the other company from putting a lien on our home?"
It might be considered as a fraudulent conveyance/transfer to avoid payment to the other company. And if the company files a complaint against it then the court can cancel the transfer to you and allow for a lien to be placed over the home.

Jaquith
Posted on: 19th Jan, 2007 11:07 am
Hi Jeremy,

Sorry to hear about your financial condition.

If your son has stable income and good credit score then the lender would agree to have the mortgage transferred in his name. You should discuss with your lender on whether he will allow it or not.

Loan Advisor
Posted on: 19th Jan, 2007 11:16 am
Welcome clueless.

Can you tell me whether your property belongs to the company? I mean have your husband signed any legal document which states that your home comes under your company assets? Or has your husband has taken a loan for the business keeping your home included within the collateral property?

If that is so, then the other company can place a lien on your home. Otherwise, if the property isn't listed as company asset, then there cannot be any lien on your home and as such your husband need not quit claim the home.

Thanks.
Posted on: 19th Jan, 2007 11:24 pm
Hi Jeremy,

Welcome to our forums.

We do come across hard times and the only way to overcome it is to have the confidence that we"ll be able to fight however worse the situation be.

Once there is a foreclosure filed against your home, you cannot quit claim the property to your son. Have the proceedings started already? Then it's not possible to transfer property because the auction may have started and the lender would like to sell the property to the highest bidder.

At the most, you can ask your son to buy the property from the lender and then quit claim it back to you in case you want it in your name and he's willing to do so.

Depending upon the state laws, you have also have the opportunity to buy back the property from the new buyer of the property. So, in case your son is not able to buy property, you can purchase it from the new buyer by making a payment. The payment is equal to the amount he has paid along with the interest accrued from the time of sale to the date when you may buy it again. This is the statutory right of redemption.

Hope you get through this situation as early as possible. If you have any related query, please feel free to let us know about it. We shall be glad to help you out.

Thanks,

Caron.
Posted on: 19th Jan, 2007 11:46 pm
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