Warranty Deed

In depth

A general warranty deed conveys title with six traditional covenants: seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and further assurances. The grantor stands behind the title against all claims arising at any point in the chain. Misconception: a warranty deed alone does not guarantee title is actually clean; it is only a contractual promise. Title insurance is what financially protects the buyer. Practically, in seller-financed deals, the warranty deed is delivered at closing for purchase money mortgages or held in escrow for contract-for-deed payoffs. Buyers should always require a warranty deed rather than a quitclaim and obtain owner's title insurance based on the full purchase price. Sellers limit their exposure with a special warranty deed if title issues are unknown.