Warranty Deed
A deed in which the grantor guarantees clear title and promises to defend against all claims. A general warranty deed provides the strongest title protection, warranting the entire chain of title back to the property's origins.
Understanding Warranty Deed
Warranty deeds contain covenants (promises) from the seller regarding the quality of title being conveyed. The most comprehensive is the general warranty deed, which includes six traditional covenants: seisin (the grantor owns the property), right to convey, freedom from encumbrances, quiet enjoyment, warranty (defense against claims), and further assurances.
A special warranty deed limits these warranties to the grantor's period of ownership. The grantor only warrants against defects arising during their ownership, not against claims from prior owners. This is common in bank REO sales and commercial transactions.
The warranties in a deed are only as good as the grantor's ability to back them. If a warrantor is judgment-proof or deceased, the warranties provide little practical protection. This is why title insurance is standard in real estate transactions—it provides a financially responsible party backing the title.
Tax deeds and sheriff's deeds typically contain no warranties at all. They convey only whatever interest was subject to the tax lien without any guarantees about title quality. This lack of warranty is a key reason investors pursue quiet title actions after tax sales.
Real-World Example
A buyer purchases a home through conventional sale and receives a general warranty deed. Ten years later, an heir of a previous owner appears claiming an ownership interest. The buyer can sue the seller under the warranty deed's covenants, and the title insurance will defend and potentially pay the claim.
Texas-Specific Information
Texas recognizes both general warranty deeds and special warranty deeds. Texas Property Code Section 5.022 provides statutory forms. A general warranty deed in Texas warrants title 'against every person whomsoever.' Texas special warranty deeds warrant only 'by, through, or under' the grantor—not against prior claims.
Related Terms
Quitclaim Deed
A deed that transfers whatever interest the grantor may have in property without any warranties about the quality of title. The grantor makes no promises about ownership—they simply 'quit' any claim they might have.
Special Warranty Deed
A deed where the grantor warrants title only against defects arising during their ownership period. Unlike a general warranty deed, it does not protect against claims from before the grantor acquired the property.
Tax Deed
A legal document conveying ownership of property sold at a tax sale due to unpaid property taxes. The tax deed transfers title from the delinquent owner to the purchaser, subject to any applicable redemption period.
Title Insurance
An insurance policy protecting property owners and lenders against financial loss from defects in title. Unlike other insurance that covers future events, title insurance protects against past events that affect current ownership.
Chain of Title
The chronological sequence of historical transfers of title to a property, from the original grant to the current owner. A complete chain establishes ownership through an unbroken series of conveyances.
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