Last Updated April 11, 2024
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What is a Warranty Deed?
A Warranty Deed is a document that transfers property interest from one person to another while guaranteeing freedom from defects or encumbrances.
In other words, the deed assures that the property has no liens or legal claims against it (meaning creditors aren’t using it as collateral for an outstanding debt, and no third parties have the right to occupy the property).
As such, a Warranty Deed facilitates transparency when selling or transferring an interest in a property—which is a major benefit to anyone receiving a land title.
Who are the parties in a Warranty Deed?
A Warranty Deed involves at least two parties:
- The grantor (currently on the property title), who transfers their interest in the property
- The grantee, who receives a title interest in the property
Keep in mind that there may be more than one grantor or grantee. Moreover, a person can be both a grantor and a grantee. For example, this may be the case when a person marries and wants to add their spouse’s name to the title of their home.
What are the two types of Warranty Deeds?
LawDepot’s Warranty Deed template allows you to choose between two different kinds of warranties:
- In a Special Warranty Deed, the grantor gives their word that they don’t know of any defects or encumbrances on the property during their time as owner. However, they can’t speak to anything that might have occurred prior to their ownership. This is also known as a limited warranty.
- In a General Warranty Deed, the grantor guarantees that the title is completely clear (other than anything stated in the deed). This addresses the entire history of the property and is also known as a full warranty. If the title is defective, the grantor can be held liable.
When should I use a Warranty Deed?
If you’re buying property, you can request a Warranty Deed to confirm that you’ll have full ownership rights to the property. This is especially helpful when you are unrelated to the seller and unfamiliar with the property.
If you’re selling or transferring a property title, a Warranty Deed can help you prove a clear title. For example, some organizations might require evidence of a clear title before lending a mortgage or issuing title insurance.
What’s the difference between a Warranty Deed and other title deeds?
Quitclaim Deed
A Quitclaim Deed transfers a title without the guarantee that a Warranty Deed provides. In this case, the buyer could risk facing legal challenges to the property in question.
Deed of Trust
While a Warranty Deed transfers a property title from a seller to a buyer, a Deed of Trust transfers the title to a neutral trustee. The trustee is a neutral third party that holds the title until the party buying the property pays off their loan. That being said, the Deed of Trust helps the buyer secure a loan.
How to write a Warranty Deed
Use LawDepot’s Warranty Deed template to create the document you need.
1. Describe the property
Specify whether the property is residential, commercial, or undeveloped land. Include the property’s location (state and county), the legal property description, and the price.
2. Select a warranty type
Specify whether you’re giving a full or limited warranty.
3. Describe the parties in the agreement
Describe the grantor(s) and grantee(s) by giving their full names and addresses:
- For individuals, you may also specify marital status.
- For corporations, include the agent’s name and the state of incorporation.
- For trusts, include its formation date and the appointed trustee.
4. Consider adding reservations
In some cases, the grantor may want to retain a slight interest in the property. In this case, they might add a reservation to the Warranty Deed that describes an exception to the title transfer.
For example, imagine a grantor adds “an easement for transportation purposes in favor of the grantor.” In other words, the easement gives the grantor permission to access the property for transportation purposes, even when they don’t have possession. This might be necessary if there’s a road that crosses part of the property.
5. Add final details
State who receives tax notices once the transfer is complete.
You should also include the date and location of where the document will be signed.
Do I need to notarize my Warranty Deed?
Yes, almost every state’s laws require you to notarize a Warranty Deed for it to be valid and enforceable.
As such, LawDepot’s Warranty Deed template includes a section for a notary public to acknowledge the parties’ signatures. Notarization helps prove the authenticity of your signatures and the parties’ intent to enter a contract.
