For example, if a warranty deed has been given and it later turns out that there are problems in title, the person giving the warranty deed may be subject to a lawsuit by the grantee in which the grantee can force that person to attempt to clear title, pay damages or otherwise bear the responsibilities for defects in title or other problems relating to the property. The importance of the “warranties” or in non-legal terms “promises” that are made in a warranty deed can have great significance. Consequentially, in every transaction the person transferring the property should be asking, “Am I making promises which I cannot keep and honor?” A true warranty deed promises, in effect, that the grantor, or in other words the person who is transferring the property, has a good and proper title, that there are no liens on the property, and that there are no easements on the property so that the ownership of the property will be clear and complete.Īs a practical matter, it is a rare case when any title is completely “clear and clean” in the sense of a true warranty deed. Theses are referred to in legal jargon as the “warranties of title”. The essential effect of a warranty deed is to make certain promises to the person to whom the property is being transferred. It is not the purpose of this brief article to provide a detailed analysis and it is not a substitute for consulting with an attorney, but will serve as a basic explanation of these types of deeds. However, the user must have a basic understanding of the effect of each one of the documents and why one would be chosen as opposed to another. Each has its appropriate use and place in real estate transactions. Less frequently, they may be confronted with special warranty deeds. Persons in real estate frequently encounter the decision as to whether to use a warranty deed or a quit-claim deed. Do I Use a Warranty Deed, a Special Warranty Deed, or a Quit-Claim Deed?
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