What is the Difference Between a Warranty Deed & a Deed?

Definition

• The purpose of the warranty deed is to allow the seller to provide a "warranty" that the title is good. If there is a title defect, the seller is responsible for fixing it.
  
  

Title Examination

• A title examination or public records search is performed by an insured and experienced title abstractor to ensure that the seller signing the deed has 100% ownership of the property and that there are no existing liens or defects on the title.
  
  

Special Language

• A warranty deed contains special language, which states that the seller or his heirs "will defend the title against any person claiming to have an interest in the property".
  
  

Quit Claim Deed

• A quit claim deed states that the seller is conveying whatever interest he may have in the property. This is most commonly used in situations involving heirs' property or in divorce cases.
  
  

Rule of Thumb

• In most real estate transactions, an attorney will review the legal documents used for transferring ownership of real property and will advise their client to make sure the property is conveyed to them using a warranty deed.