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GlossaryTitleConveyance

Warranty deed

2 min read
Short answer
A warranty deed conveys property with the grantor's warranty that title is good against all defects — including defects arising long before they owned it. It is the strongest form of deed and the one used in ordinary arm's-length sales, though the warranty is only worth what the grantor is worth.

A warranty deed conveys property with the grantor's promise that title is good — against all defects, including those arising before the grantor owned it.

It is the strongest deed in ordinary use and the default in an arm's-length sale between individuals.

What is being promised#

The traditional covenants amount to this: the grantor holds the title they are purporting to convey, they have the right to convey it, it is free of encumbrances other than those disclosed, the grantee will not be disturbed in possession, and the grantor will defend the title against lawful claims.

That last one matters. The warranty is not only a promise that title is good; it is a promise to fight for it.

The reach backwards#

The distinguishing feature.

A warranty deed warrants against defects arising at any time in the property's history — including a forged deed in 1962, an unprobated estate in 1988, an easement granted before the grantor was born.

The grantor is promising about events they had nothing to do with and no knowledge of.

Why that promise is worth less than it sounds#

Because it is only as good as the person making it.

A grantor who has moved out of state, died, spent the proceeds, or was an entity that has since dissolved is a defendant who cannot satisfy a judgment.

A claim on a warranty deed means finding the grantor, suing them, winning, and collecting — years after a sale that may have been the only asset they had.

That is precisely why title insurance exists alongside it. The insurance is a claim against a company that is still there, with a duty to defend and reserves to pay.

Most buyers want both. Only one of them reliably performs.

Where warranty deeds are not used#

Almost everywhere in distressed property.

A lender selling foreclosed property conveys by limited warranty at best. An estate conveys by personal representative's deed. Tax-forfeited land comes by state deed. A family sorting out an inherited house uses a quitclaim.

None of those carry a full warranty, because none of those grantors have any knowledge of the property's history to warrant.

That is not a defect in the transaction. It is a shift of the entire title risk onto the buyer's examination and their owner's policy — which is why declining that policy on this kind of purchase is the wrong economy.

Common questions

What does the grantor actually promise?
Broadly that they hold the title they are conveying, that it is free of undisclosed encumbrances, and that they will defend it against claims — including claims arising from periods before they owned the property.
Is a warranty deed better than title insurance?
They do different things. The warranty is a promise from a person who may have moved, died or have nothing. Title insurance is a claim against a company. Most buyers want both, and the insurance is the one that pays.
When is a warranty deed used?
Ordinary arm's-length sales between individuals. It is not used in foreclosure, probate or tax-forfeited conveyances, where the grantor has no knowledge of the history and will not warrant it.
Keep reading
Limited warranty deed
A deed warranting title only against defects arising during the grantor's own ownership, not against anything earlier.
Quitclaim deed
A deed conveying whatever interest the grantor holds, with no warranty that they hold anything at all.
Title insurance
Insurance against defects in ownership that a title search did not reveal, paid once at closing and covering losses rather than future events.