The Warranty Deed is a legal document used to transfer property from one party to another and is the one most commonly used for real estate transactions.
This document is used when conveying full title to real property. It can be used for a cash purchase, or executed and held by a third party escrow until all purchase monies have been paid.
Does your buyer have the cash to make the purchase? Are you willing to accept a down payment and execute a contract for the remaining payments? Then this is the form you need.
This legal instrument is executed prior to final payment as a safeguard to the buyer. Should the seller fall ill, expire, or relocate to a place where he or she cannot be contacted, the deed is in place, ready to convey when the final payment is made. It also binds the seller’s heirs to honor the terms of the purchase.
This document is signed in front of a Notary Public and is recorded either when the cash sale is finalized or when the escrow holder receives and processes the final payment.
It also serves another function in that it gives the buyer the seller’s guarantee that he or she owns the property in question and has a right to sell it. The seller is promising that no one else has a claim and that he or she will defend any and all claims in the future. This aspect of the agreement is also binding on heirs and assigns of the grantor (seller.)
If you are selling a property that you own outright you can use this form with certain qualifications. The property must have no liens other than property taxes. Also, the transaction is all-cash. You can use this form to transfer ownership without the aid of an attorney.
This type of deed is the most common used for general real estate transactions. The name says it all. Warranty, guarantees or “warrants” that the property is being transferred to the new owner with clear title and without encumbrances, except those that are on record. Most arms-length sales of residential property utilize a warranty deed.
It is imperative to have a written deed when transferring legal ownership of property. The Warranty Deed must be recorded with the county recorder’s office to protect the owner’s rights.