Warranty Deed

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.

BREAKING DOWN '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
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RELATED FAQS
  1. What is a fiduciary deed and when is it useful?

    Understand what a fiduciary deed is and under what circumstances it should be used. Learn about the principles behind its ... Read Answer >>
  2. How should I report my quitclaim deed?

    I live in Louisiana. My daughter and the rest of my family live in New Jersey. Two years ago, they didn't have enough credit ... Read Answer >>
  3. I want to transfer my house title to my child, what are the costs and tax consequences ...

    The costs associated with a deed transfer will vary by state and by how the transfer is accomplished. Filing a deed yourself ... Read Answer >>
  4. Do I have to claim a quitclaim deed on my taxes this year from 2000?

    Back in 2000, my mom had a quit claim deed done on the house with my husband and I being the names add... Read Answer >>
  5. Do I have to wait to get a mortgage on a home after a Quitclaim Deed between family?

    My parents purchased house with no mortgage that my wife and I have lived in for over 5 years. I want to pay my parents what ... Read Answer >>
  6. What real estate documents need to be recorded?

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