What Is the Purpose of a Warranty Deed?

A warranty deed is an important part of a real estate transaction.

A warranty deed, also known as a general warranty deed, is an official certification that serves to transfer interest in real estate property from a seller to a buyer. Through the warranty deed clauses, the seller certifies several items regarding the property.

Ownership

The warrant of seisin clause of a warranty deed is the seller's claim of ownership. This clause guarantees that the seller legally owns the property and has the right to transfer it.

Encumbrances

The encumbrances clause of the deed certifies that there are no other claims against the property, such as a mortgage, that are not already specified. Through this claim, the seller would have responsibility for any additional mortgages or liens against the property.

Quiet Enjoyment

The warrant of quiet enjoyment clause of a warranty assures the seller that there would be no "hostile" claims against the property.

Possession

This clause, called warranty forever, assures the buyer that he will have possession and use of the property for as long as he holds ownership.

Further Assurance

This clause says that the seller will defend any claims that arise against the ownership of the property at the time of the sale and going forward in the future.

References

• "Barron's Dictionary of Banking Terms, 4th Edition", Thomas P. Fitch, 2000
• "Florida Real Estate Sales Associate Course", Gold Coast School of Real Estate, 2009

Resources

• LexisNexis -- Real Estate Law Center