A party warranty is used when real estate titles are transferred to a new owner. In fact, the guarantor is a clean title and there are no creditor judgments or tax liens attached that could transfer the property. Two types of warranties are made to transfer property and include a General Warranty Deed or a Limited Warranty Deed.
A warranty transaction is made between two parties which include the Grantor and the Grantee (buyer). When the facts are transferred it will be registered by the county recorder’s office. The facts must be noted in a timely manner or the Grantees may lose the protection of the property, along with the option to pursue the Grantees if problems surrounding the real estate arise.
General Warrant Council
A general warranty deed guarantees that the Grantor owns the property and is permitted to sell it. The warranty made protects the sale in the event that the Grantor does not fully disclose items that may prevent sale. These could include non-disclosure of lawsuits and judgments, mortgage claims, or shared ownership of the property.
General warranty deeds include six agreements (binding agreements), which fall into the category of present or future. There are three instruments involved: the Covenant of Seisin, the Covenant of Right of Conveyance, and the Covenant against Encumbrances. The future covenants are: Covenant of Warranty, Covenant of Quiet Enjoyment, Covenant of Further Guarantees.
Present Testament
The Treaty of Seisinia and the Treaty of Conveyancing serve as a promise that the Grantor shall have full ownership of real estate or under any right of law, such as the power of attorney or the executor of a probated estate or trust, has the right. Covenant against interference by Grantors in the use of the promise, that there be no liens, judgments, or mortgages, claims against the property.
Federe Covenant
The Warranty Agreement and the Quiet Enjoyment Agreement serve as a promise that the property rights will not be disturbed by liens, judgments, or mortgage claims and that all defects, if any, are fully disclosed. Together, these two wills protect grantees from future possessions. The covenant protects the granting of further guarantees if the warranty deed is incomplete and prohibits the transferee from obtaining a new real estate a> title.
Factory Limited Warranty
A warranty contract is also referred to as a special warranty deed. Regardless of the name, this type of real estate agent only offers limited protection when granted.
Limited warranty deeds provide a promise regarding the real estate property owned by Grantor. If title questions surround the ownership of the real estate before the Grantor owns it, the grantee cannot pursue the Grantor for damages.
An exception to this rule is if the Grantor can provide evidence that problems existed at the time the Grantor owned the property. Since this is difficult to prove, it is recommended to obtain a general warranty whenever possible.
Grants, both general and limited, made by the recorder of duties shall be legally binding on the county recorder. Warrant deeds must be drawn up by a real estate attorney and registered by the county where the property is located.
When real estate is to be purchased, great care is taken to ensure that the Grantor holds the legal title and no liens or judgments are attached. Record keeping ensures that Grantees are protected in the event that problems arise with title transfer or property defects.
Sources:
Law of the Covenant Definitions
