Warranty Deed Legal Terms

WarrantyDeed.org’s directory of legal terms written in plain English to help familiarize you with the Warranty Deed process. The legal terms below should help you understand a little more about the terminology to help you fill out a Warranty Deed.

  • Abstract of Title: A document that provides background information about the history of a title to a piece of real estate to help determine who owns the real estate. An abstract of title is usually prepared before issuing title insurance.
  • Buyer: A person who contracts to purchase an asset in return for something of value.
  • Clear Title: A phrase used to state that the owner of real property owns it free and clear of encumbrances.
  • Conveyance: Documentation of the transfer of the ownership of land from one party to another.
  • Covenant: An agreement, contract, or written promise between two people that makes a pledge to do or refrain from doing something. When an individual obtains title to real property, six covenants are allowed. They are covenant for seisin, covenant of the right to convey, covenant against encumbrances, covenant for Quiet Enjoyment, covenant of general Warranty, covenant for further assurances.
  • Creditor: A person, place, or thing that is owed money.
  • Debt: An obligation owed by a debtor to a creditor due to assets lent by the creditor to the debtor.
  • Debtor: A person, place, or thing that owes a debt.
  • Deed: A written instrument signed and delivered by one person (grantor) that conveys the title to real property to another person (grantee).
  • Deed Without Warranty: A conveyance of the interest of the grantor only. It is very similar to a Quit Claim Deed.
  • Encumbrance: Certain rights to real property that do not prohibit passing title to the property but diminish the property’s value. Encumbrances can be classified as financial (liens) or non-financial (easements or restrictions).
  • Escrow: A bond, deed, or other document kept in the custody of a third party.
  • General Warranty Deed: A General Warranty Deed provides a guarantee of good title by the seller and, also, back through the chain of title through all the previous owners of the property. This type if deed warrants and defends the title against all claims whatsoever by anyone.
  • Grant Deed: A deed containing an implied warranty that there are no encumbrances on the property and that the grantor owns the title. A Grant Deed transfers ownership and promises that the title hasn’t been transferred to someone else or been encumbered, except as set out in the deed.
  • Grantee: When purchasing real property, the buyer is commonly known as the grantee.
  • Grantor: An individual who sells a piece of real property is known as the grantor.
  • Lien: A security interest granted over an item of property to secure payment of a debt.
  • Notary Public: A licensed public official who has the right to administer oaths and certify documents. The notary’s signature and seal authenticates a legal document.
  • Quit Claim Deed: A deed that contains no promises as to the title and releases the grantor from any liability to the grantee if a lien holder later makes a claim to the property. A Quit Claim Deed is a release by the grantor of any interest the grantor may have in the property. It relieves the grantor of all liability regarding the ownership of the property. Also, the grantor of a Quit Claim Deed will not be liable if a competing claim to the property is later discovered. A Quit Claim Deed is not a guarantee that the grantor has clear title to the property, it is the relinquishment of the grantor’s rights to the property.
  • Real Property: A piece of land that has been legally defined with improvements made by human efforts.
  • Recourse: The right to demand a payment.
  • Seisin: Having both possession and title of real property.
  • Seller: Someone who initiates a contract to transfer property.
  • Special Warranty Deed: A deed that conveys real property in which the grantor only covenants to warrant and defend the title against claims and demands by him. The grantor warrants that neither he nor anyone claiming under him has encumbered the property and that he will defend the title against defects arising through him, but no others. In some jurisdictions the Special Warranty Deed is called a Quit Claim Deed.
  • Title: A document serving as evidence of the ownership of property.
  • Title Insurance: An insurance policy that guarantees that the title to a piece of property is free and clear of any encumbrances, and that the owner has the right to sell the property. If problems arise with the title, the insurance company will pay damages to the new title holder or take steps to correct the problems.
  • Title Search: A search conducted to discover if there are any problems or claims in the historical ownership of a piece of property.
  • Warranty: A promise or guarantee.
  • Warranty Deed: A deed that transfers real property to the grantee and in which the grantor promises that the title is free and clear of any claims.

We hope this list of legal terms benefits you when learning about or filling out your Warranty Deed.