A warranty deed, which is also called a grant of deed, is the legal document, and the grantor or the seller guarantees to grantee or the buyer, that a real property which is being purchased would be free from mortgages to anything. If it is the general one, the guarantee will extend back of the original property.
On the contrary, if it’s the specific one, there would a guarantee of the seller; there is no mortgage, or other things, while owning the property. Thus, the warranty deed provides transferring ownership method or in real estate title offers protection toward the buyer.
The purchasing property of individual or lending money of a bank to the seller purchasing the property commonly would not need to find out about the tax of the property or mortgage or liens after completing the transaction. If the seller provides the warranty deed, then a buyer find out later kind of financial encumbrance, that buyer could seek the legal action to fight the seller.
For the sellers may die, have limitation of financial resources, or even declare bankruptcy, the transaction of real estate involving the warranty deed are together with title insurance and title searches.
Commonly, title abstract or title search is completed with a company of title where researchers explore public documents-real property county documents. The significant areas which are examined are the legal ownership and exact location which is established; the reviewing of property for any liens, outstanding mortgages or judgements which would prevent a buyer to obtain the clear of title.
The listed titles would be made after a research is done as marketable, doubtful, good, or bad; providing details about easements or may be other restrictions toward the property. Together with the warranty deed, the home buyers commonly purchase insurance of title to ensure a title of clear.
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