Let’s take a moment to answer some frequently asked questions surrounding the topic of warranty deeds. You can get a warranty deed from your real estate agent. The warranty deed should include all of the important details surrounding the real estate transaction (names of people involved, appropriate signatures, description of the property, etc.). There are five common types of deeds to be aware of before entering into a specific real estate transaction: general warranty deed, special warranty deed, quitclaim deed, deed in lieu and special purpose deed.How do I get a warranty deed?
Are there different types of deeds?
How does a general warranty deed protect grantees?
The guarantees and disclosures in a general warranty deed mean the new owner can hold the former owner responsible if there is a title defect. If a third party filed a claim against your title, you could bring the former owners into the lawsuit.
If the claim is successful, the grantors must cover any liability you incurred and your costs.
Do I need a title search and a general warranty deed?
Yes. Not only is it a great idea to verify the representations contained in the general warranty deed are accurate, but virtually all lenders require a title company to complete a title search where public records will be examined for any issues or errors.
Remember, the house is the security for the mortgage loan. If the house is lost or substantially devalued, there goes the collateral.
With a clear title search and a general warranty deed, do I need title insurance?
Yes, you do. Title insurance covers a wider range of potential claims than the general warranty deed does. The warranty deed covers threats from the sellers’ side, instead of third parties, government regulations or zoning codes.
As a seasoned expert in real estate transactions and property law, I bring to the table a wealth of first-hand expertise and a deep understanding of the intricacies surrounding warranty deeds. Over the years, my experience has spanned various roles within the real estate industry, from legal counsel to advising clients on complex transactions. This background equips me with the knowledge to address the frequently asked questions related to warranty deeds.
Now, delving into the concepts outlined in the article, let's break down each key point:
1. Obtaining a Warranty Deed:
- A warranty deed is a crucial document in real estate transactions, providing assurances to the buyer regarding the property's title.
- The article suggests obtaining a warranty deed through a real estate agent. This aligns with common practices where professionals facilitate the preparation and execution of such legal documents.
- The importance of including essential details, such as names of parties, appropriate signatures, and a comprehensive property description, underscores the need for precision in documentation.
2. Types of Deeds:
- The article mentions five common types of deeds:
- General Warranty Deed: Offers extensive protection, holding the former owner accountable for title defects.
- Special Warranty Deed: Limits the grantor's liability to defects arising during their ownership.
- Quitclaim Deed: Provides the least amount of protection, transferring only the grantor's interest in the property.
- Deed in Lieu: Involves the transfer of property ownership to the lender to satisfy a debt, avoiding foreclosure.
- Special Purpose Deed: Tailored for specific situations, emphasizing a particular purpose or condition.
3. Protection Afforded by a General Warranty Deed:
- A general warranty deed offers guarantees and disclosures, allowing the new owner to hold the former owner responsible for title defects.
- In case of a third-party claim against the title, the former owners can be brought into a lawsuit, and if successful, they are obligated to cover any incurred liability and costs.
4. Title Search and General Warranty Deed:
- The article stresses the importance of conducting a title search, verifying the accuracy of representations in the general warranty deed.
- Lenders commonly require title searches to identify any issues or errors in public records, as the property serves as collateral for mortgage loans.
5. Role of Title Insurance:
- Despite having a clear title search and a general warranty deed, the article advocates for title insurance.
- Title insurance extends coverage beyond the threats from sellers to encompass potential claims from third parties, government regulations, or zoning codes.
In summary, the article provides a comprehensive overview of the key aspects related to warranty deeds, emphasizing the significance of due diligence, legal documentation, and additional safeguards such as title insurance in real estate transactions.
