A warranty deed is a type of deed that includes legal guarantees (warranties or covenants) from the grantor (seller) about the quality of title being conveyed to the grantee (buyer). There are two main types: the general warranty deed (which warrants against all title defects, past and present — the strongest form) and the special warranty deed (which warrants only against defects that arose during the grantor's ownership period — a more limited form).
The warranties in a warranty deed are legally enforceable promises. If a title defect is later discovered that breaches one of the deed's warranties, the buyer can sue the grantor for damages. For example, if the deed includes a covenant against encumbrances and an undisclosed lien later surfaces, the buyer has a legal claim against the seller — even years after closing. This personal liability is what makes warranty deeds valuable to buyers and what distinguishes them from quitclaim deeds (which provide no warranties at all).
In practice, title insurance has become more important than deed warranties as the buyer's primary protection. Title insurance companies are financially stronger and more accessible than individual sellers, making title insurance claims easier to pursue than warranty deed lawsuits. Nevertheless, warranty deeds remain the standard in residential transactions because they provide an additional layer of protection and demonstrate the seller's good faith.
The purchase agreement typically specifies which type of deed the seller will provide. For standard residential purchases, a general warranty deed is the norm. For certain transaction types — bank-owned properties, estate sales, trustee sales — a special warranty deed may be used because the seller has limited knowledge of the property's complete history.
At Beycome Title, we prepare the appropriate warranty deed for every transaction, ensuring it contains the proper covenants, accurate legal descriptions, and compliant acknowledgment language. Deed preparation is included in our flat-fee closing services. Get your free closing quote.