If you’re looking to purchase or sell a property, then you may have heard the terminology “warranty deed” used to describe it. You may wonder what that means and how it impacts your ownership of the home.
A warranty deed is simply a document that the seller of a property signs when turning the property over to its new owner. Once it’s properly executed, it should be filed with the county clerk’s office so that they can access property taxes to the appropriate person or entity.
In order to be deemed properly executed, a warranty deed must list the legal names of the buyer and seller, also known as the grantor and grantee along with their titles. It should also list both the parcel number and physical address of the property. The consideration, or amount of money exchanged for the property, should also be disclosed as well.
Warranty deeds in some jurisdictions serve as confirmation that the former owner of the property has fully disclosed whether there are any encumbrances or liens that exist on it. In most cases, a buyer would expect to receive a free and clear, or clean, title to the property.
This contrasts with quitclaim deeds, where one owner may transfer a property to another without making any warranties. This is often used by one family member to transfer a house to another person they’re related to.
In cases such as this, since no warranty is made, it’s possible that a house or piece of land may have liens or encumbrances on them that the new owner assumes when they take over ownership of them. These are listed on the title for the property.
Property disputes often arise because individuals try to handle certain legal processes like the transfer of their home or land on their own instead of having a lawyer oversee it. The transfer of property to your kids isn’t as simple as adding such wishes to a will, but instead, involves deeding a property over to them. To learn more about how to go about doing this, you’ll want to consult with a Trenton real estate attorney.