What is a warranty deed?

A warranty deed is a legal document that guarantees clear title to a property, assuring the buyer that the seller has the right to sell the property and that it is free from any encumbrances, such as liens or claims from other parties. This type of deed provides a high level of security to the buyer because the seller essentially warrants that they hold clear ownership and will defend against any future claims that may arise regarding the title.

In real estate transactions, the warranty deed is crucial because it protects the buyer's interests by ensuring that they are receiving full ownership and there are no hidden issues with the property title. This assurance is fundamental in establishing trust in property transactions and upholding property law.

Other options, while related to real estate, do not define a warranty deed accurately. Homeowners insurance is a separate coverage to protect against damages to property, a contract between buyer and seller describes the terms of the sale but does not pertain to title guarantees, and a temporary lease agreement is a rental contract for a specified period, not a document related to property ownership transfer.