What is a Warranty Deed?
Do you know what Warranty Deed is? You are probably aware that deeds are a crucial legal document in the US that conveys the rights to real estate between parties. When you purchase a piece of real property, such as an apartment, the written legal document that affirms the whole process that transfers rights of that property from the seller to you is a deed. A warranty deed best protects you as a real estate buyer in the US.
What is a Warranty Deed?
A warranty deed is standard for average home sales in the country. A warranty deed is a type of deed that functions to transfer property ownership between two parties. You can use different kinds of deeds to meet the specific needs and preferences of the buyer and seller.
However, a warranty deed is vital in property transactions as it not just transfers ownership of a property from one party to the other, it also gives the new owner a “warranty” that the property title is free, clean and clear of any unknown encumbrances or claims. Therefore, it gives you the peace of mind you need.
Warranty deeds are applicable in more complex situations, such as when you are getting a mortgage in order to buy a home. You can use it when purchasing a property at or close to its fair market value.
Therefore, we can say that a seller creates a warranty deed to make specific guarantees as to the condition of the property title.
Warranty Deed is a Legal Document
A warranty deed is a legal document, usually prepared by a title company or an attorney. A warranty deed mentions the full names of both the grantees and grantors in the transaction. Also, it includes a complete legal description of the relevant property. It is worth noting that the grantor signs the deed often in the presence of a notary public. The notary acknowledges the signatures.
Restrictions, Terms, and Covenants to Property Ownership
With the passage of time, property ownership as well as the rights of others around your real property, including your rights received a great deal of societal and legal attention. People use warranty deeds all over the US.
However, they are most common in the Eastern and Midwest states in the country. The covenants, terms, and restrictions imposed by these deeds range from quite liberal to extremely limited in the way property owners receive permission to use and enjoy their property.
This is why if you are a homeowner who is buying in a subdivision, you have to pay careful attention to the covenants and restrictions. Some of the things you should look for are as follows:
- Limits on the places on the property your vehicles or cars can be parked
- Limits on the number of cars that you can park on the property
- Restrictions on renting out your home