Warranty Deed Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Warranty Deed, written in plain English, along with examples of how it is used.
What is Warranty Deed?
(n) A warranty deed is the document containing the conditions and terms of warranty issued by the owner to the buyer. It guarantees the seller about title, contents, composition of the goods. It is specifically used when a property is transferred.
History and Meaning of Warranty Deed
A warranty deed is a legal document that is used when a property is sold or transferred from one owner to another. It guarantees that the seller has the legal right to transfer ownership of the property, and that there are no outstanding claims or liens against the property. It also provides a warranty or guarantee that the property is free from defects in title, and that the seller will defend the buyer's ownership of the property against any third-party claims.
Warranty deeds have been used in real estate transactions for centuries, and they are an important legal safeguard for both buyers and sellers. They help to ensure that both parties have a clear understanding of the terms of the transaction, and they provide a mechanism for resolving any disputes that may arise.
Examples of Warranty Deed
John sold his house to Jane and provided her with a warranty deed, guaranteeing that he had the legal right to transfer ownership of the property, that there were no outstanding claims or liens against the property, and that the title was free from defects.
Mary inherited a piece of land from her grandfather and decided to sell it to a developer. She provided the developer with a warranty deed, which ensured that the property was free from any legal disputes or claims.
A commercial real estate broker provided his client with a warranty deed when they completed a complex real estate transaction. The deed provided protections for both parties, ensuring that the buyer was protected from any claims against the property, and that the seller was protected from any future legal disputes.
Legal Terms Similar to Warranty Deed
Quitclaim Deed - A legal document that transfers ownership of property, but does not guarantee that the seller has the legal right to transfer ownership or that the property is free from defects.
Deed of Trust - A legal document used in some states as an alternative to a mortgage, providing a lien on the property as security for a loan.
Title Insurance - An insurance policy that protects buyers and lenders from financial loss due to defects in title that were missed during a property transaction.