Warranty Deed

A warranty deed is a legal document that transfers ownership of real property from a seller (the grantor) to a buyer (the grantee), in which the grantor guarantees that the title is free of defects, liens, or encumbrances and agrees to defend the buyer against any future claims to the title. Among deed types, a warranty deed provides the highest level of buyer protection. It is the standard instrument in most residential and commercial real estate sales.

How a warranty deed works

When a grantor signs a warranty deed, they make a set of promises called covenants.

• Covenant of seisin. The grantor confirms they own the property and have the legal right to transfer it.
• Covenant against encumbrances. The grantor confirms the property is free of undisclosed liens, mortgages, or easements.
• Covenant of quiet enjoyment. The grantor guarantees the grantee's ownership will not face disturbance from third-party claims.
• Covenant of warranty. The grantor will defend the grantee's title against lawful claims.
• Covenant of further assurance. The grantor will take additional steps to perfect the title if needed.

Once the grantor signs, notarizes, and records the deed with the County Recorder's Office, the deed becomes the official record of the transfer.

Why it matters

A warranty deed obligates the grantor to resolve title defects that surface after closing. Such defects might include an undisclosed lien or a forged signature in the chain of title. If the grantor cannot resolve a defect, they must compensate the buyer for resulting losses. Mortgage lenders frequently require a warranty deed before they approve a loan, since their security interest depends on a clear title.

Title insurance often accompanies a warranty deed. It provides a separate financial remedy if the grantor can’t fulfill their obligations.

General warranty deed vs. special warranty deed

A general warranty deed covers the property's entire title history, even before the seller owned it. The grantor guarantees against defects even if they arose before the grantor's ownership.

A special warranty deed (also called a limited warranty deed) limits the grantor's guarantee to the period of their own ownership. It is more common in commercial transactions and foreclosure sales, where sellers are unwilling or unable to warrant the full title history.

Warranty deed vs. quitclaim deed

A quitclaim deed transfers whatever interest the grantor holds with no title guarantees. If a defect exists, the grantee has no legal recourse against the grantor. Quitclaim deeds typically serve for transfers between family members, adding a spouse to title, or transferring property into a living trust. In these situations, title assurance is less critical.

Key considerations

A warranty deed is only as strong as the title search and recording process behind it. State laws govern the required language, execution, and recording procedures for warranty deeds. A title search must occur before closing to identify any existing liens or claims the grantor must resolve. Prompt recording is essential. An unrecorded deed may not protect the grantee against subsequent claims or competing transfers.

Related terms

A warranty deed connects to several other legal instruments and concepts in real estate. These terms help clarify how a warranty deed fits within a broader property transfer.

• Property deed: The general category of legal instruments a grantor uses to transfer real estate ownership, of which a warranty deed is one type.
• Quitclaim deed: A deed that transfers ownership without title guarantees, typically used in non-sale transfers between family members or into a trust.
• Grant deed: A deed that provides limited implied warranties but not the full set of covenants a warranty deed carries.
• Property title: The legal concept of ownership that a warranty deed conveys, with the grantor's guarantee that the title is free of encumbrances.

FAQs about warranty deed

Is a warranty deed the same as a title?

No. A warranty deed is a legal document that transfers ownership of real property and guarantees that the seller has clear title and the legal right to transfer it. A title refers to the legal ownership rights to the property, not a physical document. The warranty deed transfers those ownership rights to the buyer.

Can a seller refuse to provide a general warranty deed?

Yes. Sellers, particularly in commercial transactions or foreclosure sales, often negotiate for a special warranty deed or quitclaim deed to limit their exposure to title defects that predate their ownership.

What happens if a title defect surfaces after closing?

The grantor is legally obligated under the deed's covenants to defend the grantee's title and either resolve the defect or compensate the buyer. If the grantor cannot fulfill that obligation, title insurance provides a separate financial remedy.

Is a warranty deed proof of ownership?

A warranty deed shows that the seller has the legal right to transfer the property to the new owner. Once the deed is recorded with the county, it becomes public record and helps confirm ownership rights.

Is a warranty deed the same as title insurance?

No, a warranty deed is a legal promise from the seller that the property title is clear. A title insurance policy, on the other hand, protects the buyer (and sometimes other parties involved, like the lender) from hidden title defects that weren’t found during the title search.

Do you need a lawyer to write a warranty deed?

You don’t always need a lawyer to write a warranty deed. If no money is being exchanged, you can use a property deed service. If you’re selling a property, however, it’s a smart move to contact a lawyer, escrow company, or title company.