What Is A General Warranty Deed?

A general warranty deed is a legal document that conveys interest in real property from grantor (seller) to grantee (buyer). This type of deed guarantees that grantor has clear title to the property and has legal authority to sell the property. Additionally, the grantor promises the property is free of encumbrances or claims during their ownership... and for the entire history of the property. Among various deed types, a general warranty deed provides the highest level of protection to the buyer (grantee). 

Features of a General Warranty Deed: 

1. Full Warranty of Title: 

   • The grantor provides a full warranty of title, meaning they guarantee that the title is free of defects, both during their period of ownership and extending back to the property's origins. This means that the grantor is responsible for any issues with the title, even if they arose before the grantor owned the property. 

2. Covenants Included in a General Warranty Deed: 

   • Covenant of Seisin: 

     The grantor promises that they own the property and have the right to convey it. 

   • Covenant of Right to Convey: 

     The grantor guarantees that they have the legal authority to transfer the property. 

   • Covenant Against Encumbrances: 

     The grantor assures the grantee that the property is free from any encumbrances (such as liens or easements) except those explicitly stated in the deed. 

   • Covenant of Quiet Enjoyment: 

     The grantor promises that the grantee's ownership will not be disturbed by claims against the title. 

   • Covenant of Warranty: 

     The grantor agrees to defend the grantee's title against any lawful claims and compensate the grantee for any losses due to defects in the title. 

   • Covenant of Further Assurances: 

     The grantor promises to take any necessary actions to fix title defects if they arise in the future. 

3. Protection for the Grantee: 

   • A general warranty deed offers the strongest protection to the grantee, ensuring that they receive clear title to the property. If any title issues arise, the grantor is legally obligated to resolve them, even if the issues predate the grantor’s ownership. 

4. Legal Recourse: 

   • If a title defect is discovered after the property is transferred, the grantee can take legal action against the grantor based on the warranties provided in the deed. This recourse gives the grantee significant protection and peace of mind. 

Common Uses of a General Warranty Deed: 

• Standard Real Estate Transactions: 

  General warranty deeds are commonly used in typical real estate sales, particularly when the buyer wants the maximum protection regarding the property's title. 

• High-Value Properties: 

  For properties with significant value or complex ownership histories, a general warranty deed is often preferred to ensure that the buyer is fully protected. 

• Financed Purchases: 

  Lenders often require a general warranty deed when providing a mortgage, as it ensures that the borrower (and thus the lender) receives a property with clear and marketable title. 

Limitations: 

• Liability for the Grantor: 

  The grantor assumes significant liability under a general warranty deed, as they are responsible for resolving any title issues that arise, even those predating their ownership. This makes general warranty deeds more suitable for situations where the grantor is confident about the property's title history.