What is a Warranty Deed?
A warranty deed is a legal document that is used to transfer property from one person to another. A warranty deed can be used to transfer real estate (land) as well as tangible personal property. This type of deed guarantees that the title is clear and the seller has the right to sell the property being transferred. With a warranty deed, the seller promises to protect the buyer from any past or unknown claims related to the property. This means that the buyer is guaranteed that he or she owns the title free and clear of any liens or encumbrances from the time of conveyance until the closing of the purchase.

The Benefits of a Warranty Deed
The main benefit of a warranty deed is that it protects the buyer from any title problems that might come from the seller’s past or unknown claims. In addition, buyers are protected from any undisclosed facts that could affect their ownership and enjoyment of the property, such as a previously undisclosed easement or an undiscovered boundary dispute. Buyers are also protected against any potential problems with the actual title, such as problems with the chain of title or deed restrictions. As a result, the buyer is protected financially and will have less risk when buying the property.

The Disadvantages of a Warranty Deed
One of the main disadvantages of a warranty deed is that they only protect the buyer from problems with the title that are caused by the seller’s past or unknown claims. This means that buyers will not be protected from problems with the title that are caused by external entities, such as the government or another person. In addition, warranty deeds do not protect buyers from any potential financial burdens or other negative consequences that could arise from buying the property.

Overall, warranty deeds can be a very useful legal document for transferring real or tangible personal property from one person to another. They offer buyers protection from any title claims from the seller’s past or unknown claims. However, buyers should also be aware of the potential drawbacks of a warranty deed, such as the lack of protection from external entities or other financial burdens associated with the purchase.