Property law |
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Part of the common law series |
Types |
Acquisition |
Estates in land |
Conveyancing |
Future use control |
Nonpossessory interest |
Related topics |
Other common law areas |
Higher category: Law and Common law |
A warranty deed is a type of deed where the grantor (seller) guarantees that they hold clear title to a piece of real estate and has a right to sell it to the grantee (buyer), in contrast to a quitclaim deed, where the seller does not guarantee that they hold title to a piece of real estate. A general warranty deed protects the grantee against title defects arising at any point in time, extending back to the property's origins.[1] A special warranty deed protects the grantee only against title defects arising from the actions or omissions of the grantor.[1]
A warranty deed can include six traditional forms of covenants for title,[1] sometimes known as the English covenants of title.[2] Those six traditional forms of covenants can be broken down into two categories: present covenants and future covenants.
Most buyers perform a title search to determine if there are defects in title that must be resolved before they purchase real property. A title search provides constructive notice of any encumbrances, easements, or restrictions on the property being conveyed, and is generally considered part of a buyer's due diligence in the process of purchasing real estate. Buyers can also purchase title insurance to protect against title defects. A warranty deed is not a substitute for title insurance because, if the grantor later dies or goes bankrupt, the grantee may not be able to exercise the warranty.[7][8][9]