What Is a Warranty Deed?
A warranty deed is a legal document that a grantor (e.g., a seller) uses to promise to the grantee (e.g., a buyer) that they have the right to transfer a piece of real property, including a house, a building, or a land area.
A warranty deed doesn’t necessarily prove ownership. Instead, it’s the grantor’s sworn declaration that they, as far as they know, legally own the property and intend to transfer ownership to you, the grantee. However, grantors may not be aware of legal claims against the title to a property even if they have signed an affidavit of title.
What Happens If You Don't Have a Warranty Deed?
Without a warranty deed, you may have no recourse if you discover that the property you purchased is not free of debt or other liens (i.e., a claim someone else has on a property). It might even be that the grantor didn’t have the authority to sell the property.
However, if you have a warranty deed, you have the right to remedies, primarily by suing for damages (i.e., monetary compensation).
Warranty Deed Requirements
Here are the key warranty deed requirements:
- Seller’s (Grantor’s) Information: List the individual(s) or corporation currently owning the property.
- Buyer’s (Grantee’s) Information: List the individual(s) or corporation who will be the new owner.
- Mailing Addresses: Provide the physical addresses (not PO boxes) of both parties.
- Legal Description of the Property: Include a legal description (you can usually find it on your property deed) to help everyone identify which property is being transferred.
- Parcel Number: This number is usually listed on the property’s tax statement. If you have trouble locating the parcel number, you can also call or visit the city, county, or court office where the property taxes are paid to get it.
- Joint Tenancy (if applicable): Warranty deeds can transfer ownership to multiple new owners, referred to as joint tenants. Specify the portion that each joint tenant will own (if applicable).
- Consideration: Provide the amount to be paid for the property, if any.
- Conveyance Clause: Indicate that the grantor will transfer property ownership to the grantee.
- Covenants: A warranty deed can contain up to six key promises or covenants that the grantor makes to the grantee. These promises, the first three which are present and the latter three which are future, are as follows:
- Covenant of Seisin: Confirms that the grantor legally possesses the property.
- Covenant of the Right to Convey: Confirms that the grantor has the legal right to sell the property.
- Covenant Against Encumbrances: Confirms that the grantor has revealed all encumbrances (property tax liens, etc.) to the grantee.
- Covenant of Warranty: Guarantees that the grantor will protect the property if another party tries to claim ownership.
- Covenant of Quiet Enjoyment: Guarantees that the buyer will enjoy owning the property without interference from third parties.
- Covenant of Further Assurances: Guarantees that the seller will address any encumbrances.
- Witnesses: Some states require that witnesses watch the owner sign the deed.
- Notary: The person transferring the property must take the deed to a notary public who will verify that the signature on the deed is authentic.
Additional Terms
In addition to the above provisions, here are some other terms you may want to include in your warranty deed if they apply to your property:
- Easements: The grantor can reserve the right to continue using the land (or part of it), perhaps to keep fishing in the pond or to drive along part of it to reach another property they own.
- Life Estate: The grantor can reserve a life estate interest in the property if they want to continue being the legal owner of the property until their death for tax purposes.
- Mineral Rights: The grantor can reserve any remaining interests in the property’s subsurface oil, gas, or other mineral rights.
How to Make a Warranty Deed
Step 1 – Gather Pertinent Information
Gather pertinent information that is discussed in the above requirements section. Ensure that you have the legal description in the proper format. Review an example below:
Lots 6, 7, and the South ½ of Lot 3, West 60 feet of South ½ of Lot 4, West 60 feet of Lot 5 and Lot 8, Block 20, OLD SURVEY, Leesville, Vernon Parish, Louisiana.
Step 2 – Draft the Deed
Draft your deed using our standard template. Keep the document as clear and concise as possible, and ensure you include the proper legal terminology.
Step 3 – Sign and Notarize
Have the grantor sign the deed. Depending on your jurisdiction, the grantee may also need to sign.
Seek the signature of a notary public, who will witness the signatures and attach their seal to the document.
Step 4 – Deliver the Deed
Deliver the signed and notarized deed to the grantee. You can make this delivery in person or via mail. Please adhere to the delivery method that both parties agreed to.
Step 5 – Record the Deed
Be sure to leave space at the top of your warranty deed for the county recorder’s office to put their seal on the document. Ensure all property taxes are also paid in full before filing the deed.
Your warranty deed should be filed in the public records at your local land records office. This office is sometimes called the county recorder’s office, land registry office, or register of deeds. You can usually find the land records office in your local courthouse.
The clerk will stamp your warranty deed with the date, book, and page number, which can be found in the court’s files. The office often charges a small fee (around $15 a page) to record a warranty deed.
