What is a warranty agreement? | Smart change: personal finance

What is a warranty agreement?  |  Smart change: personal finance

The warranty deed will contain details such as the property’s address, parcel number, a legal description of the property, the transaction date and the names and addresses of the parties involved. In order to be legally binding, the warranty deed needs to be notarized and filed with the city or county office for keeping real estate records. It’s delivered to the grantee at the real estate closing. A warranty deed isn’t proof that you now own the property. Rather, it means the previous owner can guarantee that no one else holds ownership or is owed money for the property. You don’t actually own the property until the title is transferred to you. Source trib.com

In a real estate transaction, there is a grantor and a grantee. These can be individuals or businesses. A warranty deed is a real estate document that warrants—or promises—that the grantor (seller) owns the property free and clear and there aren’t any outstanding mortgages, liens, judgments or other encumbrances against it. In other words, the seller has the authority to transfer the ownership rights to the grantee (buyer). What Is a Warranty Deed?

How Warranty Deeds Work This document might seem like just one more sheet in your stack of mortgage paperwork, but it’s an important contract that protects your home against future claims. Read on to find out what it is and how it works.

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