A warranty deed is a legal document where a grantor transfers their interest in real property to a grantee. With a warranty deed, the grantor represents and warrants he has title to the property, and the title is free of all encumbrances and other claims.
In contrast, a quitclaim deed is a document that transfers property, and the grantor makes no representations about the title to the property.
There are various types of deeds to transfer property, which include:
- Gift Deed
- Survivorship Deed
- Warranty Deed
- Bargain and Sale Deed
- Mortgage Deed
There are two types of warranty deeds: a General Warranty Deed and a Special Warranty Deed.
General Warranty Deed. A general warranty deed is more comprehensive than a special warranty deed. It guarantees that title is warranted against all possible defects, including those that could have arisen before the grantor took ownership. This deed provides the most protection to the grantee because it covers the entire history of the property.
Special Warranty Deed. A special warranty deed is more narrow in terms of the protections offered to the grantee. A special warranty deed guarantees against defects to title for the period during which the grantor owned the property. The deed does not cover the period prior to the grantors ownership.
Grantors will frequently use a warranty deed when selling the property to an unrelated party. The transaction also includes a title search with the purchase of title insurance by the buyer.
A general warranty deed will generally contain the following elements:
- Title of the instrument as a “General Warranty Deed”
- Date of execution
- Name of the grantor and grantee
- Amount of consideration
- Legal description of the property
- Representations to title
Example of General Warranty Deed
John Smith owns a single-family residential property in Sarasota, FL. The property’s fair market value is $350,000. John sells the property to Jane Doe for $350,000.
John prepares and executes a General Warranty Deed to transfer ownership to Jane Doe for $350,000 of consideration. The deed is signed by the grantor and witnessed by two individuals. It is also notarized and ultimately filed with the Clerk of the Circuit Court of Sarasota County, Florida.
The deed contains the following language:
“Grantor hereby covenants with Grantee that Grantor is lawfully seized of the property in fee simple; that Grantor has good right and lawful authority to sell and convey the property; that Grantor hereby fully warrants the title to the property and will defend the title against the lawful claims of all persons whomsoever; and that the property is free of all encumbrances not set forth herein.”