What Are Warranty Deeds In Estate Planning?
Used to transfer real estate while also guaranteeing that title is free and clear of encumbrances. If defective, the person making the transfer (selling) will be liable to clear any issues. Often title insurance is purchased for protection against defective title.
Example Of A Warranty Deeds In Estate Planning
When we bought our house, the seller provided a warranty deed and assured us there were no easements on the property. It turns out he sold rights for the electric company to have an easement to run power lines across our backyard. This wasn’t found in the title search. Good thing we have title insurance.