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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

Hi Virginia,

Welcome to the forum.

In no way, can you quitclaim a mortgage. There is some kind of misunderstanding here. If at all your husband is not anle to get a loan, you can cosign on it and help him qualify for it.

On being a cosigner, the lender will consider your income and credit details before approaching the loan to your husband. And, in case, he cannot make all payments or he defaults, it will be your responsibility as a cosigner to pay off the equity loan.

Please feel free to come up with further queries.

God bless you

Samantha
Posted on: 12th Dec, 2007 09:43 pm
When my husband got divorced to ex-wife, the divorce decree read that he was not responsible for the house they purchased together any longer. However, when he asked for his VA loan (that he used to get the house) back, he recieved a letter of denial stating the house had to be refinanced in her name or the debt could be transferred to another person whom has a VA loan. We spoke to a lawyer and had the decree reviewed, but apparantly there wasn't any specifications as to the VA loan, just that she would be responsible for the debt, but this doesn't suffice for the VA office, and the lawyer suggested a quit claim deed. Will this be enough to show that my husband is no longer financially responsible for this house or are there other options?
Posted on: 14th Dec, 2007 11:49 am
Hi Maria,

Welcome to this forum.

Your husband can quitclaim but before that before that check thoroughly that your husband's Ex-wife has refinanced and removed your husband's name from the mortgage. If she has already removed your husband's name from the mortgage, there is no problem to quitclaim.

Warranty deed is generally used when you are selling the house. So quitclaim deed is good enough to get out of it.

Hope it is clear to you. If you have further questions, feel free to ask.

Thanks,
Larry
Posted on: 14th Dec, 2007 12:05 pm
we checked, and the house still bears both their names. the ex refuses to refinance unless we give her $10,000 for closing costs. if it's just a transfer from one va lender to another, are there such costs? if he can't make her refinance, can he reap any benefits from this? we've noticed that his name is still on the tax forms for the house also? can he claim the house as well, since his name is still on it? we don't know much about this and he wasn't married long after they bought the house, so we can use all the advice we can get, thanx!
Posted on: 20th Dec, 2007 03:35 pm
Hi Maria,

According to the divorce decree "he was not responsible for the house they purchased together any longer". That means your husband is not responsible for the house. So forget about claiming the house :)

Again, as per the divorce decree, your husband's ex-wife is responsible for the due debt as you have said above- "she would be responsible for the debt". So she has to refinance or you can transfer the VA loan to her. Consult with you attorney. He will help you in this regard.

There is no way she can ignore her responsibility regarding the due debt as she is enjoying the property and it has been dictated through the Divorce Decree.

Thanks,
Larry
Posted on: 20th Dec, 2007 04:05 pm
so we consulted some free legal advice (via military) and were suggested to run a credit report to see if my husband was indeed financially responsible still. he was, and to top it off, the report shows a missed payment! the only thing we got out of that was a letter to his ex (whom is also military) notifying her that she is causing financial hardship on my husband and that it would be in her best interest to refinance. our lawyer says to sweetalk the ex into refinancing, but unless we'rewaving money at her, she won't give us the time of day. so, that brings me to asking where do i get this quit claim deed and are there any loopholes to it? do we need anything signed by the ex?

thank you for your time and advice
Posted on: 23rd Jan, 2008 04:37 pm
Hi Maria,

Welcome back.

As you husband has signed a quitclaim deed to her, he has no interest on the property but his name is still there on the mortgage. So he still remains responsible for the mortgage payments. And as you husband's ex is defaulting on the payments it also hurts your husband's credit report.

I think instead of finding loopholes in the quitclaim deed you should ask your husband's ex to refinance. She can't claim money from you, though if you can, try to help her out to refinance as it will help both of you. If you assist her by giving her the money, she can be able to refinance and you will be out of that headache forever as she will have the mortgage on her own name and..

You can even take legal actions against her if she claims the money because according to the divorce decree it is her duty to pay the mortgage. But I think if is better if you can negotiate the matter mutually.

Hopes it will help you.

Feel free to ask if you have any further questions.

Best of luck,
Larry
Posted on: 23rd Jan, 2008 05:43 pm
I am 50 years old and have been on Medicaid for 4 years. My house will be paid off in 1 year and I read the Medicaid can attached to my house affter I am 55 and died. Should I tranfer my house to my daughters before this age? I reside in St. Louis Missouri and not sure if this applies to this State. What can I do to insure my daughter will inherit my house after my death clear without any problem and secure them from any liens?
Posted on: 27th Jan, 2008 10:37 am
Hi Jackson,

As per the Medicaid Estate Recovery Rules in the state of Missouri, the state cannot interfere with the ownership of a real property until the Medicaid applicant or his spouse passes away.

However, a lien may be placed on the property as security for the payment of the debt while the applicant is still alive. The lien does not change ownership of property but the debt should be satisfied before the property is transferred or sold off or offered on rent. So, it is better that you pay off the debt and then transfer property.

Regards,

Jessica
Posted on: 28th Jan, 2008 03:30 am
what is the best way to get my exboyfriends name off my house without refinacing. He owns his own house.
Posted on: 10th Feb, 2008 12:16 pm
Ilive in Cincinnati ohio. the above question is mines, removing my ex boyfriend off my mortgage
Posted on: 10th Feb, 2008 12:21 pm
hi sheila,

welcome to the forums.

the only way other than refinancing is a novation. please check a previous discussion on how spouse can take name off mortgage .

take care
Posted on: 10th Feb, 2008 09:35 pm
I,m a 87 year old,when my husband died,he let me some money.I have a niece and her husband and daughter they talk me to buy a duplex house,7 years ago,and I did,I gave $40,000 down payment.Later I found out that all 3 of then, put their names on my property.How I get then out of the title of my property.
Thanks
Posted on: 18th Feb, 2008 07:20 am
Hi Martina,

Welcome to forums.

Are you sure they made you sign a deed which could have added you to the title to the new property? If that is not done then I should say, they have simply taken money from you without bothering to add you on title. I hope you don't have your name on the loan.

Feel free to ask if you have further queries.

Thanks
Posted on: 18th Feb, 2008 10:07 pm
My mother owned her house as of 6 years ago, she married a con artist and he now has his name on the title for tax reasons, they are divorcing, how does she get him off that house? Please help
Posted on: 23rd Feb, 2008 06:50 am
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