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What is a warranty deed used for?
A warranty deed is a document often used in real estate that provides the greatest amount of protection to the purchaser of a property. It pledges or warrants that the owner owns the property free and clear of any outstanding liens, mortgages, or other encumbrances against it.
What is the purpose of a warranty deed?
A warranty deed is a type of deed where the granter (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee (buyer), in contrast to a quitclaim deed, where the seller does not guarantee that he or she holds title to a piece of real estate.
Why would you use a warranty deed?
A warranty deed is a document often used in real estate that provides the greatest amount of protection to the purchaser of a property. It pledges or warrants that the owner owns the property free and clear of any outstanding liens, mortgages, or other encumbrances against it.
What is the difference between a warranty deed and a deed?
They serve different purposes and are signed by different parties. The warranty deed transfers the property's ownership from the current owner to the new buyer, while the deed of trust ensures the lender has interest in the property in the event a buyer defaults on the loan.
How does a warranty deed work?
A Warranty Deed is a real estate document used when a property owner (granter) transfers land to a buyer (grantee), and wishes to make a guarantee that the property is free and clear of any encumbrances, like a lien or mortgage.
Do you get a warranty deed at closing?
Both the warranty deed and deed of trust are recorded with the county clerk or recorder. Generally, the lender sends the documents to be recorded after the closing. The recording fees are included in your closing costs. Typically, the lender will provide you with a copy of the deed of trust after the closing.
Is a warranty deed the same as a title?
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.
Is a warranty deed proof of ownership?
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.
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