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Introduction to Warranty Deed
When you buy a home, there are many documents that you sign before you close on the home.
Every document that you sign has its significance. Some documents are related to the mortgage that you acquired to buy this home and some are related to the title and other aspects of the property.
One such important document to protect you as a buyer is the general warranty deed. In this post, we will understand what is a warranty deed in detail.
What Is A General Warranty Deed On A House?
A warranty deed is a legal real estate document between the seller (grantor) and the buyer (grantee) that protects the buyer from future legal claims from the seller.
The deed protects the buyer by guaranteeing that the seller holds a clear title to the property and that there are no mortgages unknown easements, outstanding liens, or encumbrances against it.
For first-time buyers unfamiliar with the real estate process, it can be confusing to distinguish between warranty deeds and home warranties.
You might make this mistake since both phrases can be used to protect property. The only difference is that a general warranty deed is used to protect the buyer from property title-related issues.
How Does The General Warranty Deed Works?
A deed is a legal document in which the seller and the buyer, transfer ownership of a real estate property from one party to another.
During the real estate transaction, the title company conducts a full search on the tile of the current and previous owners of the property to determine if there are any title-related defects or issues with the previous owner of the property.
This deed will indemnify the seller, also known as the grantor for any breach of title after
the title search, even if the breach occurred unknowingly or at a time before the seller bought the real estate property.
This ensures that the buyer will not be liable for any prior title-related issues or encumbrances. This type of deed will be sent to the buyer, also known as the grantee when the property sale is being closed.
It document contains a legal description of the transferred property and must be signed and certified as per the laws of the state where the property is located, including the legal documents of transfer, that the seller transfers the property to the buyer and provides proof of the amount paid to purchase the property.
How To Get A Warranty Deed?
A realtor or real estate attorney can help buyers (grantee) and sellers (grantor) to get this type of deed.
Whether you’re buying or selling real estate, this deed can be helpful for title-related issues. As a seller or grantor, having this type of deed can give buyers the confidence to purchase property and find maximum protection and peace of mind for investing in real estate property.
If the title is clear and there are no outstanding liens or encumbrances, the transaction could be smooth and successful.
Most of the buyers apply for a mortgage to purchase their home. The lenders are required to complete a title search through the title company to ensure that their interest in the property is protected from any title-related issues such as an outstanding lien, title claims, or any other encumbrances.
Conclusion
Getting a general warranty deed on the house is just like having the highest level of protection for you as a buyer in the real estate property that you are buying along with title search and title insurance.
As a seller, you would always prefer having this deed as it will also ensure that there are no title-related issues on the property that you are selling.
