Warranty Deed (General)

Warranty Deed

Although it may sound like something you’ll find in the packaging for some big piece of electronic equipment you just bought online, a warranty deed can be a bit more complicated than it sounds. Why? Because it often applies to the world of real estate, where really big purchases are made and a number of legal steps should be taken to make sure that no one suddenly loses all of the money they thought they were spending on a house. Quite simply, a warranty deed is a document signed by the seller of a house that guarantees they have the rights to sell this house. This might sound like overkill, but when two people agree to an exchange of money over real estate property, it’s important that the person selling the real estate actually has the authority and title necessary to sell it! Otherwise, money might be exchanging hands that never should have exchanged hands. That’s exactly what a warranty deed looks to cover legally so that no one is “on the hook” for the transaction. Making sure these legal needs are met is very important in a large transaction like a real estate sale or purchase. Why? Because so much money is at stake! If you’re taking out a loan to buy a piece of real estate like a home, then you want to make sure that the money from the loan is secure because the other person has signed documents like a warranty deed as part of the sale. If it all sounds like a lot to handle, keep in mind that this is exactly the type of thing the real estate agent will be handling - after all, they’re not just showing you houses! They’re going to help make sure that the transaction goes off without a hitch, because that’s what they’re there for, and it will ultimately benefit them if a sale is made without any obstacles. Having this type of person on your side is exactly what you want - and it’s exactly what will help make you aware of the necessity of legal issues such as warranty deeds and what they’re there for. It’s also important to keep in mind that warranty deeds are not the only forms that should be signed before a real estate transaction is to take place. When you make your formal offer on a home, you’ll also want to make sure there are provisions in the contract that allow you to get “your money back” if something about the real estate transaction isn’t right - the real estate agent can typically make sure that your formal offer contains these provisions. It’s important to make sure that you don’t sign anything you don’t understand throughout the whole process. Simply knowing what a form is and having the real estate agent inform you which form you’re signing can be a major step in the right direction. But it’s also important to be meticulous about details when you’re committing major amounts of money to one specific purchase.