A warranty deed is a document that transfers the ownership of real estate property from one person to another. The warranty deed also guarantees that the seller of the property holds clear title to the property and has a legal right to sell it to the buyer.
Although many forms of deeds exist, a warranty deed is the most common form of deed used for the transfer of title or property. A warranty deed is preferred due to the high level of protection it affords a potential buyer, as the seller uses this document to guarantee there are no outstanding debts attached to the property. Should the buyer encounter any problems with the property which were guaranteed in the warranty deed, the seller is liable for damages.
There are two main types of warranty deed. A general warranty deed guarantees the buyer's title to the property and also guarantees against deficits such as a mortgage claim, title claim or judgment. Should any of these occur, the buyer may hold the seller liable. A special warranty deed guarantees the buyer's title to the property and protects the buyer against title defects or claims stated by the seller. This form of warranty deed assures the buyer that the seller has done nothing during their time as title holder that may impair the title in the future.