A warranty deed is used in the transfer of property to establish written guarantee the property is free of all attachments that may interfere with procurement of a clear title. Two types of deeds are used in the transfer of real estate and include \”general\” and \”limited.\”

The general warranty deed includes the current owner and former owners dating all the way back to the inception date of the property. Limited warranties cover only the current owner. If problems occur due to actions of former owners, buyers have no legal recourse. Therefore, it is always preferable to obtain a general deed when possible.

Deeds are used to record real estate transfers whether they occur by sale, trade, transfer, gift, or bequeathed through inheritance. Transfer documents must be recorded through the court within a specific timeframe. Otherwise, new owners could lose the right to sue previous owners if problems after the sale or transfer.

Specific legalese is used within warranty deeds and relates to sellers, buyers, and covenants. The property owner who holds current title is referred to as the Grantor. The new owner is known as the Grantee. Covenants convey specific rights related to the deed.

General deeds include six covenants; three of which relate to the present and three relating to the future.

Present covenants include: Seisin, Right to Convey, and Covenant against Encumbrances. The first two are a written guarantee that the Grantor holds legal title for the property and has the expressed right to \’convey\’ to another person.

Covenant of Encumbrances provides promise that property is free from encumbrances that could prevent property transfer. Encumbrances can include mortgage claims, tax liens, and creditor judgments.

Future covenants include: Warranty, Quiet Enjoyment, and Further Assurances. The first two are written promise that the Grantee is not held responsible if defects of property are not fully disclosed at the time of sale or if claims are filed against the property after the sale. Future Assurances protect Grantees if problems arise that prevent them from obtaining a new title.

When limited warranty deeds are used the Grantee is only protected against title problems that arise during the time when the Grantor owed the property. If problems occurred during the time property was owned prior to the Grantor taking possession, the Grantee cannot file a lawsuit against the Grantor.

A loophole exists with limited warranty deeds which allow Grantees to pursue Grantors for legal damages. If Grantees can provide evidence that problems existed under the ownership of the Grantor they can seek legal damages. However, providing proof is oftentimes quite difficult and legal expenses to pursue the matter can be costly.

Both types of warranty deeds must be recorded through the County Recorder\’s office where property is located. It is strongly advised to secure legal counsel to ensure real estate deeds are executed and recorded properly. A nominal fee is assessed for recording deeds.

Once the warranty deed is recorded it is a matter of public record. This can be advantageous for Grantees as they can search public records to track all previous owners. Public records can be viewed at courthouses or downloaded via the Internet for a nominal fee.

Author Bio: Simon Volkov is a real estate investor residing in Orange County, California. He provides extensive information on the proper use of a warranty deed when transferring real estate, along with an array of real estate investing information and resources at www.SimonVolkov.com.

Category: Real Estate
Keywords: warranty deed,general warranty deed,limited warranty deed,real estate deeds,real estate transfer