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A warranty of title is a guarantee by a seller to a buyer that the seller has the right to transfer ownership and no one else has rights to the property. In addition, a warranty of title may be used to guarantee that no other party has copyright, patent or trademark rights in the property being transferred.
Paired with title insurance, your warranty deed guarantees that the granter is the rightful owner and transfers these rights and title to you as the grantee or new owner of the property. With a warranty deed, your title is clear. However, both the warranty and quitclaim deeds are not sales documents by any means.
A warranty deed is one type of proof of ownership. It shows the name of the owner and gives a brief description of the property. The previous owner or party granting you ownership signs the warranty deed, showing your rights to the property. A quitclaim deed is the other main type of property deed.
In the warranty deed, the granter of the deed (the seller) guarantees that the title of the property does not have any encumbrances or claims. This is different from title insurance. This only protects you against such claims, but does not involve the transfer of the property from the seller to the buyer.
The warranty deed is commonly used when a property is purchased at or around its fair market value. The deed implies certain warranties that the seller, or granter, provides to the buyer, or grantee. First, the granter owns the property and has the right to transfer his ownership.
Title is the legal way of saying you own a right to something. Deeds, on the other hand, are actually the legal documents that transfer title from one person to another. It must be a written document, according to the Statute of Frauds. Sometimes the Deed is referred to as the vehicle of the property interest transfer.
General Warranty Deed It is used when you are aware and confident that the title to your property is good and marketable. It is most commonly used for residential real estate transactions. A general warranty deed is a buyer's best protection against title challenges.
to protect a buyer by revealing whether a property has marketable title, one free of undesirable encumbrances. The buyer is legally responsible for knowing the condition of title, since it is a matter of public record. Recording a transaction also protects a buyer by replacing the deed as evidence of ownership.
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