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“General Warranty Deed”

Glossary

Definition: A general warranty deed is a type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to you. The guarantee is not limited to the time the grantor owned the property—it extends back to the property's origins.

Important portions of a general warranty deed include,

  • The grantor states there are no hidden liens or encumbrances on the property. In other words, there are no debts or holds other than those that are obvious in public records.

  • the grantor declares that he or she is the owner of the property and has a right to sell it to you.

  • The grantor guarantees that if the title ever fails he or she will compensate the grantee (new owner) for any losses.

    That guaranteee might or might not be helpful, because the grantor may be dead or unable to follow through on the promise if title problems are found in the future.

Most people hire someone to perform a title search to determine if there are title problems that must be resolved before they purchase a property. They can also purchase title insurance, which covers many types losses that occur if problems are discovered later.

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