how warranty deeds work
a deed is a legal document that transfers real estate property from one entity to another as a seller to a buyer during a real estate transaction a title company provides a full title search of current and past ownership of the property to see if there are any defects or issues affecting the title during past ownership of the property a warranty deed holds the seller or grantor responsible for any breach after the title search even if the breach occurred without their knowledge or during a period before the grantor owned the property it ensures that the buyer will not be responsible for any past title defects or encumbrances the warranty deed is delivered to the grantee during the closing of the sale it contains an accurate legal description of the property being conveyed is signed and witnessed following the state law where the property is located contains legal words of conveyance that the seller is granting the property to the buyer and shows proof of the amount of money or consideration paid for the property types of warranty deeds the grantor warrants that they are the rightful owner of the property and have the legal right to transfer the title of the property in a sale the grantor warrants that the property is free and clear of all liens and that there are no outstanding claims on the property from a creditor who may claim it as collateral a guarantee that the title can withstand any third party claims to ownership of the property conveys that the grantor holds the title and there has been no encumbrance of the property during the grantor s ownership period of the property the grantor does not guarantee against any defects in clear title that existed before they took possession of the property 