A warranty deed is a legal document used in real estate transactions that transfers property ownership between two parties. The warranty deed establishes legal ownership and also ensures that the property is free of liens and debt, according to Rocket Lawyer.
Warranty deed forms include essential information about the property, such as its address, parcel number and a brief description of the property. This information is usually pulled from a deed or property tax documents, as noted by Rocket Lawyer. The deed lists the legal names and addresses of the buyer and seller, and the seller's name must appear the same as it does on all documents related to the property. The deed must include the seller's county and state, as well as indicate which person is to receive the original deed in the transaction. There is also a section on the deed for the parties involved to state if the property is a sale, and if so, it must give the selling price. In order for a warranty deed to become legally binding, it must be signed and notarized, and the parties must file it with the appropriate city or county property document office.
Warranty deeds give property buyers more legal protection than quitclaim deeds. These deeds are most often used to transfer property between family members, according to Investopedia.