I know this is basic knowledge for us Realtors, however for this article is geared toward the general home buyer. I get asked this all the time so I figured I would post it. Whenever I put an offer together for a buyer, there is a section in the purchase & sale for title and I always make sure it states Warranty Deed at closing. For those of you who are starting the home buying process here is a quick explaination.
A warranty deed is what is used to define land ownership. There are many ways to establish land ownership, but a warranty deed is the most common. It is needed before you take out a mortgage or transfer the property to another owner.
The deed basically states that the granter, or the previous owner, guarantees that the property has no unknown legal attachments to it and will stand behind this in court. This protects the grantee, or new owner, from buying a property that may be seized from previous unpaid bills or collateral.
Obtaining a Warranty deed can be different for each state, although most require a professional to research the ownership before it can be issued. There are professional title companies that look into property ownership as far back as possible, that way the Warranty deed is as accurate and binding as possible.
After the property is researched and no other legal problems have been found, the Warranty deed can be drawn up and signed by the granter and grantee.
A Warranty Deed and Title Insurance
Sometimes the Warranty deed misses a claim on the property, and that's when title insurance comes in. The insurance further protects the new owner from losing their property from mistakes of a previous owner and is sometimes required before a Warranty deed can be made.
For more information or help, Contact Bill @ http://www.billburkehomes.com or call (603) 232-8282 x 2621
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