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How to protect your property title with a warranty deed

On Behalf of | Sep 19, 2018 | Residential Real Estate |

Finding the right home can be a tough process. You have a list of features you want, an idea of what area you want to live in and a budget to stay within. When you are home shopping, you may end up compromising on some things. One thing you never want to compromise on is making sure you have a clear title on your property.

Many people protect their new home’s title through buying title insurance. When you sign up for title insurance, a company searches for possible claims or liens against your property’s title. The insurance company then remedies any issues and continues to insure your claim to the property.

However, this is not the only way to protect your claim to your property. You could also ask the person you are buying the property from to sign a warranty deed.

What is a warranty deed?

A warranty deed is basically an unlimited warranty that guarantees your property title is good. The person you are purchasing the property from must grant you a warranty deed. By doing so, the seller, or grantor, is transferring the property title to you the buyer, or grantee. The grantor is also guaranteeing that the property title is free and clear of all clouds.

A grantor agrees to resolve any future issues

However, if a third party does make a claim against the property in the future, the grantor is agreeing to be legally responsible for resolving these title issues. This includes any concerns related to the title even before the grantor owned the property.

A warranty deed needs to include six covenants that protect your interest in the title and specific language to guarantee these protections. You will likely want to consult an attorney with experience in real estate transactions to ensure your warranty deed is drafted correctly.