What Is a General Warranty Deed?

After you’ve found the home you want to buy and made an offer on it that was accepted, you’re close to owning it. The final step is due diligence and closing. 

But with all the excitement comes the reality that you'll need to ensure the owner has a free and clear title to sell the home. A general warranty deed offers the greatest protection. Read on to understand how these deeds work. 

Understanding General Warranty Deeds

​​A general warranty deed is a legal document used in real estate transactions to transfer property ownership. It provides the buyer with the highest level of protection because the seller guarantees a clear title and defends against possible claims. This protects you as the buyer by certifying that the seller holds a free and clear title to a property without outstanding liens or mortgages. 

In a general warranty deed, the seller is called the grantor, while the buyer is called the grantee. 

By issuing this document, the buyer is protected against future claims to the property title. If you apply for a mortgage, you need a warranty deed to finalize the approval. 

General Warranty Deed vs. Other Deed Types

You may encounter other deeds beyond the general warranty deed, but many aren't used in regular home transactions. You might see a special warranty deed or quitclaim deed, and it's important to understand how the protections and guarantees they offer differ from a general warranty deed. Other types of deeds include:

Special Warranty Deed

A special warranty deed differs from a general warranty deed in the limitations it places on the guarantee. A general warranty deed guarantees that there are no outstanding claims or liens on the property, and it assures the buyer that the deed is free and clear from any past liens or other issues. 

In contrast, if a seller issues a special warranty deed, they're not giving any assurances about issues that could arise in the future because of the actions of previous owners. A special warranty deed conveys that the grantor holds the title and there have been no encumbrance or title defects of the property during the time the grantor owned the property. Still, there could be existing encumbrances from previous owners.

Deed in Lieu of Foreclosure

A deed in lieu of foreclosure is a document that allows homeowners who would otherwise go through foreclosure on their property to transfer it to the lender. A deed in lieu of foreclosure transfers the property title from the owner to the lender in exchange for relief from the mortgage debt. This deed is for a different purpose than a warranty deed. 

Special Purpose Deed

Special purpose deeds are used in court proceedings or allow those acting in an official capacity to make property transfers without personal liability. These are also used for a significantly different purpose and aren't commonly used in regular real estate transactions. 

Quitclaim Deed

A quitclaim deed releases a person’s interest in a property without stating whether they had any property rights. It is used in the transfer of property ownership. A quitclaim deed doesn't guarantee that the grantor or signer has any right to the property. It only states that they won't make a claim in the future. 

While both a general warranty deed and a quitclaim deed can be used to transfer property, a quitclaim deed doesn't make any of the general warranty deed's guarantees. Instead, it simply relinquishes rights to the property. 

Who Prepares a General Warranty Deed? 

Typically, the seller's attorney or a title company prepares the general warranty deed. They ensure that all necessary information is included, such as accurate property descriptions, legal names of the involved parties and any applicable restrictions or easements. You may also ask the title company to verify the warranty deed as part of the title search. 

What Information Is Required in a General Warranty Deed? 

A general warranty deed should include the names and addresses of the buyer and seller, a detailed property description, the purchase price, any encumbrances and the warranties made by the seller. Items that must be included to ensure the validity of a general warranty deed are:

• The grantor's (seller) name and address 
• The grantee’s (buyer) name and address 
• A legal description of the property from the previous deed
• A statement that the grantor is the legal owner of the property and has the right to transfer it
• A statement that the grantor has the legal right to transfer the property
• A statement that there are no legal claims on the property by creditors
• A statement that the grantor is transferring the property to the grantee
• The grantor guarantees that if claims do emerge, they will compensate the grantee

What Are the Basic Warranties in a General Warranty Deed?

The basic warranties of a general warranty deed include standard covenants. Here's what each of these means. 

Covenant of Quiet Enjoyment

A covenant of quiet enjoyment means the grantor states that the grantee will have unimpaired use and unrestricted enjoyment of the property. For example, if someone obstructed an easement to access the property, this would violate the covenant of quiet enjoyment, assuming the grantee was aware of the issue.  

Covenant Against Encumbrances

With the covenant against encumbrances, the seller warrants that the property is free of liens or encumbrances. Sellers can make this covenant even if there are encumbrances, as long as they're specifically stated in the deed. 

In this case, if the property owner makes this covenant and you later find out that someone is using your property to access another property, this would breach the covenant. 

Covenant of Seisin 

A covenant of seisin states that the grantor solely owns the land or property being purchased, and no other parties have an interest or claim to ownership. This is essential for the sale of a property. For example, suppose a divorced husband is selling a property. In that case, he can sign a covenant of seisin only if his ex-spouse is no longer a co-owner of the property or is involved in the transaction and signing similar agreements. 

Covenant of Further Assurance

The covenant of further assurance is unique to a general warranty deed. It states that the grantor will do whatever is necessary to remove a defect associated with the title, such as an encumbrance, if they arise in the future. If the problem is not fixed according to the agreement, the covenant states that damages will be awarded to the grantee. 

What Happens if an Issue Arises with the Title After the Property Is Transferred?

The general warranty deed protects the buyer if an issue arises with the title after the property is transferred. The seller is legally obligated to defend the buyer against any claims and compensate them accordingly if they are proven valid. For that reason, a general warranty deed offers the greatest protection when purchasing a property. 

How Long Is a General Warranty Deed Valid?

A general warranty deed is valid indefinitely as long as the property remains in the buyer's possession. It is a permanent record of the property transfer, ensuring the buyer's rights and ownership. It remains valid whether you own a house for five years or 50 years. 

Final Tips to Protect Your Home Purchase

In addition to a reliable title company to ensure there are no ​​title problems, you'll want to get licensed professional inspectors and appraisers to give you an idea of the property's condition. Buying a home is an exciting time. Taking the additional steps to ensure the property is in good condition and free of any unknown encumbrances, encroachment, title issues or claims can protect your family and peace of mind. A general warranty deed can help give you this peace of mind as you start your time in your new home. 

Frequently Asked Questions