Posted on: February 5, 2018The warranty deed legally transfers ownership of the house from the previous owner to you. If you’re purchasing a home, the warranty deed is an essential part of the document package you sign during closing. Understanding what a warranty deed is, who holds it, and how this can affect your claim on the property is important. Like other types of deeds, this document establishes the right to ownership and if it is not correctly executed, you could run into trouble down the road.
What Does the Warranty Deed Provide?The warranty deed establishes several key factors for the individual or company that holds it. If you have a warranty deed, you are the legal and rightful owner of the property. The deed establishes that the property is free of any other claims to ownership. It’s called a warranty deed because the seller of the property ‘warrants’ that he or she is the sole owner of the property and that there are no liens or other claims on the property. If any breach of these warranties takes place while the grantor is in possession of the deed, he or she is responsible for them. You can claim for compensation in that case. Once a warranty deed is successfully transferred to your name, you will have all the necessary documentation to assert that you have sole ownership of the property if anyone tries to make a third-party claim.
What’s Included with a Warranty Deed?A warranty deed features a wealth of information. This includes:
- Description of the property
- Lot specification in a platted subdivision
- Identification of property lines
- Identification of the grantor and grantee
- Words of conveyance
- Specification of money exchanged