A warranty deed is a legal document used in real estate transactions that transfers ownership of a property from one person or entity to another. Unlike a quitclaim deed, which only transfers the interest in a property that a grantor may have, a warranty deed provides a guarantee to the buyer (grantee) that the seller (grantor) has clear title to the property and the right to transfer it.
In a warranty deed, the grantor promises that they have the right to sell the property and that there are no liens, encumbrances, or other legal claims against the property, other than those that have been disclosed in the deed. The grantor also agrees to defend the buyer against any future claims that may arise against the property.
Warranty deeds are commonly used in real estate transactions, particularly in the sale of residential properties. They provide the buyer with greater assurance that the property they are purchasing is free from any legal disputes or other issues that could affect their ownership of the property.
It's important to note that while a warranty deed provides a guarantee of clear title, it does not protect the buyer against any defects or problems with the property itself, such as structural issues or problems with the plumbing or electrical systems. These issues may be covered by a separate home warranty or other insurance policies.
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