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Warranty Deed

A warranty deed ensures that the title conveyed over property is full and free from encumbrances.  It establishes trust between a buyer and a seller because the seller covenants that he will protect the buyer against any claim on the property.  In short, a warranty deed makes a seller accountable to the buyer.

Usually mortgage lenders require a warranty deed before they finance any transaction based on a property.  Through a warranty deed, a seller assures the buyer that the transaction is legal, proper and the title uncontested.  Before a warranty deed is issued, a professional title company conducts a research on the title of the property and also delves into the history of the property to make sure that there are no legal hassles.  A property is a very important investment as far as a buyer is concerned especially because it can be used as collateral for securing finance.  When a warranty deed is in place, a buyer need not worry about seller’s unpaid creditors staking claim on it.  It ensures that title to property is full and final.


Inside Warranty Deed