A warranty deed is a legal document that guarantees the ownership and lack of liens on a property. There are two main types: general warranty and special or limited warranty. A general warranty deed offers the most extensive warranties, including the right to quiet enjoyment of the property. A special or limited warranty deed provides the same guarantees, but only for the period of time the seller owned the property. A statutory warranty deed is a form of general warranty deed established by state real estate law.
A warranty deed is one of three main types of titles, which include offer and sale titles and surrender titles. In real estate law, a promise or guarantee is a guarantee, and a document expressing that promise or guarantee is a guarantee. There are two main variations: the comprehensive and protective general warranty and the more restricted special or limited warranty. The legal guarantee deed varies according to its source of authority.
A general warranty deed offers the most extensive warranties to the new owner. The seller of the land has made an agreement with the buyer that the seller not only owns the land but has no liens other than those specifically described in the deed. Commonly, the language of the deed expresses four guarantees: the seller owns the land and has the right to convey the property; the buyer can quietly enjoy the land; land and buildings are free of encumbrances; and the transfer of ownership is permanent.
The quiet enjoyment of land or peaceful possession is particularly broad. It implies that there are no circumstances that affect the use of the land and buildings for which they are intended. Sellers must carefully evaluate their property to ensure that all factors that would restrict the quiet enjoyment of their property are fully listed and disclosed. As an example, if a homeowner has experienced basement leaks, it is generally safer to disclose the fact, even if the problem has been explored and mitigated.
A special or limited warranty deed provides the same guarantees as a general warranty deed, but only for the period of time the seller owned the property. Defects or liens on the property that occurred before the owner took title are not guaranteed. This type of deed is common when the conveyance is from an entity that has not controlled the property and did not acquire the property with a general warranty deed. Deeds acquired through bank foreclosures or tax deed sales, or sometimes through inheritance, are often passed on with this type of deed.
A statutory warranty deed is a form of general warranty deed established by state real estate law. The law generally inserts the four general guarantees without the need to actually include the written language. Some real estate experts believe that there is danger in this fact, since the seller can make inadvertent and unknowing promises that can be detrimental to both parties. Others respond that it protects the buyer, who is seen as potentially less informed.
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