Last week we introduced the three most common Deeds used to transfer ownership: General Warranty Deeds, Special Warranty Deeds, and Quit-Claim Deeds.

In the majority of real estate closings General Warranty Deeds are used to convey title. This Deed comes with four warranties, which are contractual promises the seller gives the buyer.

First is what you would expect, the seller promises they own the property and have the legal right to transfer ownership to the new buyer. But with this type of deed the seller takes the promise a step further and also promises the property is free from any liens, mortgages, or other claims of unpaid debt on the property.

If there is a claim after the closing that is related to the seller, the seller promises in this deed to take care of that claim at no cost to the buyer. In a related promise the seller guarantees ownership to the buyer, that no one else has any ownership rights to the property, and the buyer will be free to enjoy the property.

All of these promises together are why Real Estate Attorneys are so important. At Smith Sholar Milliken we research the property in depth to ensure the seller can make these contractual promises without worry.