Warranty Deed

AAA

DEFINITION of 'Warranty Deed'

A document that may be used to legally transfer property. A warranty deed states that the owner can legally transfer the property and that no other entity has a claim or lien on it. These deeds are typically used in property sales and make warranties about the property’s title.

INVESTOPEDIA EXPLAINS 'Warranty Deed'

A warranty deed usually includes a legal description of the property, the names of the grantor (who is transferring the property) and grantee (who is taking ownership), and language conveying ownership from the grantor to the grantee. A warranty deed, in conjunction with title insurance, is necessary to secure the grantee’s valid ownership interest and gives the grantee legal recourse against any future claims to the property.

Contrast a warranty deed with a quitclaim deed, which releases an entity’s interest in a piece of property without guaranteeing that it has any interest in or rights to the property. For this reason, a quitclaim deed is not as useful in transferring ownership, since it only ensures that a particular entity does not think other outside entities have any claims to that property.

Quitclaim deeds are commonly used to transfer property between family members, whereas warranty deeds offer greater protection and are used to transfer property in a sale. 

RELATED TERMS
  1. Quitclaim Deed

    A deed releasing a person's interest in a property without stating ...
  2. Deed Of Surrender

    A legal document that transfers property ownership for a specified ...
  3. Grant Deed

    A legal document used to transfer ownership of real property. ...
  4. Tax Deed

    A legal document that grants ownership of a property to a government ...
  5. Special Warranty Deed

    A special warranty deed is a deed in which the seller warrants ...
  6. Unrecorded Deed

    A deed for a tangible piece of property that is not filed with ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Home & Auto

    Five Things to Know About Quitclaim Deeds

    If that property you're about to buy has a quitclaim deed, check very carefully before you hand over your cash.
  2. Home & Auto

    Understanding Property Deeds

    We help you figure out the terminology and types of deeds, and how to make it legal.
  3. Options & Futures

    Give Yourself More Options With Real Estate Options

    Real estate options have many benefits, including a smaller initial capital requirement.
  4. Taxes

    Getting U.S. Tax Deductions On Foreign Real Estate

    If your home or second home is not in the United States, you can still get U.S. tax deductions. How many and what kind depends on whether you also rent it.
  5. Chart Advisor

    Why This Real Estate ETF Should Be on Your Radar

    At current levels, real estate should be near the top of the list for most traders. Here's one ETF of REITs to pay particular attention to.
  6. Home & Auto

    Real Estate Face-Off: Zillow Vs. Trulia

    Both websites help you find homes for sale, but they organize the information differently. Here's how they compare.
  7. Options & Futures

    How To Make Money WIth Real Estate Options

    Buying real estate options is one way to invest in real estate at a lower entry cost.
  8. Personal Finance

    What's a Commercial Bank?

    A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal and mortgage loans; and offers basic financial products ...
  9. Home & Auto

    Getting A Mortgage In Your 50s

    The financial considerations are different when you take out a mortgage in your 50s. Here's what you need to review as you calculate the pros and cons.
  10. Home & Auto

    Mortgage Guide For Thirty-Somethings

    Five things to consider before you sign on the dotted line for a mortgage.

You May Also Like

Hot Definitions
  1. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  2. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  3. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  4. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  5. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  6. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
Trading Center