A warranty deed is a legal document that transfers ownership of real estate from a seller (the grantor) to a buyer (the grantee) and includes the seller’s guarantees about the title. With a general warranty deed, the seller promises they own the property, have the right to sell it and that there are no claims against it other than those listed, and agrees to defend the buyer if a covered claim comes up later.
It offers the most protection of the common deed types, which is why it is standard in many residential sales.
The promises in a general warranty deed
The guarantees are often called covenants. The names vary by state, but they usually include:
- Seisin: the seller owns the property.
- Right to convey: the seller has the legal right to transfer it.
- Against encumbrances: there are no liens or claims beyond those disclosed.
- Quiet enjoyment: no one with a better claim will disturb the buyer’s ownership.
- Warranty: the seller will defend the buyer’s title against covered claims.
- Further assurances: the seller will sign any documents needed to fix title problems.
A general warranty deed covers the property’s entire history, not just the seller’s time as owner.
Comparing deed types
| Deed | What the seller promises | Covers | Common uses |
|---|---|---|---|
| General warranty | Full set of title promises | The whole history of the property | Many home and rental sales |
| Special or limited warranty | No problems arose while the seller owned it | Only the seller’s ownership period | Commercial sales, sales by banks and builders |
| Quitclaim | No promises at all | Whatever interest the grantor has, if any | Family transfers, moving property into an LLC or trust, clearing up title |
Which deed is customary depends on the state and the type of sale. The purchase contract should say which one the seller will deliver.
Example
An investor buys a duplex with a general warranty deed. Two years later, a contractor appears with a valid lien from work done for an owner before the seller, which the title search missed. Under the deed, the seller is responsible for defending and resolving the claim. In practice, the investor’s owner’s title insurance would usually handle it first, since the policy pays covered claims without depending on the seller’s finances.
Why it matters for landlords
The deed you receive decides what guarantees come with the property, and the deed you use later, for example to move a rental into an LLC, can affect title insurance and your loan. Keep the recorded deed with your closing documents and your title policy. This is general information; deed requirements and customs vary by state, so ask a real estate attorney before signing or preparing one.
Related terms
Related questions.
Is a warranty deed the same as title insurance?
No. A warranty deed is a promise from the seller, which is only as good as the seller's ability to pay if a claim arises. Title insurance is a policy from an insurer. Most buyers get both.
When is a quitclaim deed used?
Usually between people who know each other, such as transfers between spouses, into a family trust or into an LLC the owner controls. It transfers whatever interest the grantor has, with no promises.
Does moving my rental into an LLC need a new deed?
Yes. Transferring a property to an LLC is done by deed, often a quitclaim or special warranty deed. It can affect your mortgage, insurance and title policy, so talk to an attorney and your lender first.