What Is a Warranty Deed on Property?
When ownership of real property is transferred a deed is signed, after which all rights and responsibilities to the property are handed over from the seller to the buyer. Few purchases are more expensive or important than that of real estate, and it behooves the buyer to make certain that any transfer carries assurances. The warranty deed fulfills this need, as a Bryan TX real estate lawyer will tell you.
What Does a Warranty Deed Do?
Transfer of ownership in real property generally involves a very large amount of documentation. Anyone who has purchased a home has surely marveled at the great variety of documents and issues each covers. The warranty deed is in many ways the most important of these items, for through it the actual title is transferred.
Texas law allows the use of numerous types of deeds, such as quitclaims and grant deeds. However, only the warranty deed offers certain protections for the buyer. In essence, the warranty deed not only transfers title, but it does so with the implicit assurance that the property is free from liens. This is referred to as a clear title. The warranty deed will also indicate that a “consideration” in the form of money was traded for the property and will include the amount.
What Types of Warranty Deeds Are There?
Your Bryan TX real estate lawyer will tell you that two kinds of warranty deeds are allowed under state law:
- The special warranty deed: This type of deed merely stipulates that the seller is responsible for any problems with the title that occurred while he held ownership. Thus, if a mechanic's lien is in place on the property, he would be responsible.
- The general warranty deed: This second type is generally the more preferable, for it provides greater protection for buyers. It suggests that the seller will protect the buyer's acquired interest should an issue with title exist either during ownership or before.
Where Do I Turn in the Documentation?
After the seller signs the warranty deed he needs to take it to his local county records office to have it recorded. It then becomes public record.