In defining what a warranty deed is, it is important to note that a warranty is a guarantee. An owner selling property to prospective buyers is guaranteeing that there are no liens, mortgages or judgments against the property being sold. A title search will be performed going back to the original owners to further guarantee this; this is a normal thing in real estate sales. The deed is a guarantee to buyers that the seller has no encumbrances on the property. It would mean lawsuits if a seller went bankrupt or died without having given such a guarantee and left the buyers and lenders holding the bag.
When the title search has been completed with no liens, mortgages, or tax judgments against the property, clear title is given to the buyers, with lenders getting a copy of the warranty deed, as well. Title insurance is purchased as a further guarantee that the property is clear. Notarizing the document must be accomplished before recording the transfer of property. Grantors, or those guaranteeing the property is clear, may transfer property to someone as a gift, they may transfer property to a trust to be held for someone, they may transfer the property to their business, or they could transfer the property to someone else.
Also in researching what is a warranty deed is learning how to write one. The facts needed are few and simple, an example to follow using the wording in legalese simple to find. The guarantor will need to list:
*the grantor, or seller
*the grantee, or buyer
*the consideration, or the purchase price
*the address of the property
*the legal description of the property
*statement of clear title against any and all claimants
*the signature lines, date and notary information
After the document has been drawn up, signed, and notarized, the footwork begins. The warranty deed will need to be recorded in the County Clerk's office, following which it will need to be recorded in the County Land Records office. The grantee now owns the property.
Many people use a warranty deed to bail out of trouble elderly parents about to lose their home due to back taxes or bankruptcy catching up to them. Some people use a warranty deed to cede small plots of a large estate to the children or other assigns for building a house. Yet others use such deeds to transfer real estate for the use of public parks, playgrounds or other public use. A warranty deed is a guarantee that all is well, so it can be used by anyone, anywhere for a variety of reasons.
When the title search has been completed with no liens, mortgages, or tax judgments against the property, clear title is given to the buyers, with lenders getting a copy of the warranty deed, as well. Title insurance is purchased as a further guarantee that the property is clear. Notarizing the document must be accomplished before recording the transfer of property. Grantors, or those guaranteeing the property is clear, may transfer property to someone as a gift, they may transfer property to a trust to be held for someone, they may transfer the property to their business, or they could transfer the property to someone else.
Also in researching what is a warranty deed is learning how to write one. The facts needed are few and simple, an example to follow using the wording in legalese simple to find. The guarantor will need to list:
*the grantor, or seller
*the grantee, or buyer
*the consideration, or the purchase price
*the address of the property
*the legal description of the property
*statement of clear title against any and all claimants
*the signature lines, date and notary information
After the document has been drawn up, signed, and notarized, the footwork begins. The warranty deed will need to be recorded in the County Clerk's office, following which it will need to be recorded in the County Land Records office. The grantee now owns the property.
Many people use a warranty deed to bail out of trouble elderly parents about to lose their home due to back taxes or bankruptcy catching up to them. Some people use a warranty deed to cede small plots of a large estate to the children or other assigns for building a house. Yet others use such deeds to transfer real estate for the use of public parks, playgrounds or other public use. A warranty deed is a guarantee that all is well, so it can be used by anyone, anywhere for a variety of reasons.