What is a warranty deed?

A warranty deed is a type of deed that provides the highest level of protection to the buyer regarding the title of the property. By executing a warranty deed, the seller guarantees that they hold a clear title to the property and have the legal right to transfer ownership. This means that the seller assures the buyer that there are no outstanding liens or claims against the property and that the property is free from defects in title. If any issues arise concerning the title after the sale, the buyer has legal recourse against the seller.

This form of deed is particularly important in real estate transactions as it provides not only assurances to the buyer but also enhances the buyer's confidence in their purchase. A warranty deed typically includes several covenants or promises from the seller to the buyer, including the right to convey, the warranty of quiet enjoyment, and the protection against any future claims on the title.

The other choices do not accurately define a warranty deed: a deed that allows lease agreements to be transferred refers to a different type of legal document known as an assignment of lease, a contract ensuring that the property is free of any debt pertains more to a title search or insurance rather than the deed itself, and a document exclusive for commercial properties would refer to commercial deeds, which are