Imagine if you need to negotiate a piece of real estate and your lawyer informs you that the landlord wants you to provide a special warranty deed. Fair enough, but do you really know what’s a warranty deed? These are legal matters and not everyone knows about them. But worry not since you are not the only one and many also on the same boat as you
Any seasoned real estate expert will tell you to make negotiations for the rental property between you and the landlord using a warranty deed. Only those who are novice and lack of real-life experiences will tell you that warranty deed is not needed. A warranty deed template or form will make the transactions faster and easier for both parties.
If you are new to real estate and don’t know much about warranty deed, here are all the things you need to know.
What is a Warranty Deed?
A warranty deed is a form of contract that is used to legally transfer a property between two party. A warranty deed mentions that any property owner can legally transfer a property and no body or entity can make any claim on it, thus making the transaction process easier. The warranty deed contract usually used in a property sale.
What is included in a Warranty Deed Template?
A warranty deed highlights some straightforward elements, you should understand those definitions to ensure a smooth and fast process. The warranty deed contract involves the items mention below:
Grantor is the owner of the current property – corporation or individual.
Grantee is the buyer of the property, or the new owner.
The physical address and does not involve any P.O. Box numbers of neither parties.
Consideration is the money considered between two parties for the property.
It tells which property will be transferred and normally located on the property deed.
It’s the number listed on the property tax statement. If you need more information about the parcel number, you can always call the court office where the property taxes are paid to ask for questions.
They will be the people who witness the deed. Some place will require the signature of the deeds to be watch over by a third party.
Notary is the legal representative or lawyer who transfers the needs of the property to a notary public, after that it will confirm the signature on the deed is authentic or not.
Lands and properties are very expensive and valuable objects. This is the critical reason why you must always get them notarized. Deeds will usually be filed in the public records present in your local land record call Register of Deeds, Land Registry or Country Recorder’s Office. If you’re having trouble to find the record office, you can go to your local courthouse as the secondary choice.
A staff member will stamp your deed with the numbers indicating the page number and the book that listed in the filing system of the court. They will charge a little fee of around $15 per page to record your deeds. It’s not a fixed amount and varies from state to state. You should be sure that your local record office has put their seal on the document, payment of all taxes must be made before filing the deeds.
What are the Covenants of a Warranty Deed?
Warranty Deed is a document that protect the buyers against any claims that can be made in the future by the sellers. There are two types of Covenants of a warranty deeds: Present Covenant and Future Covenant. They all include covenants. Covenants are promises or guarantees of a contract. We will go into detail all the six covenants below.
Covenant of Seisin
Seisin is a form of covenant where the owner give warranty that he will sell the property to the buyer. Seisin is a word derived from the Middle Ages which used to express the possession of estate that is worthy to be held by any free man. In this context, Seisin means that the seller has both the property as well as the title of the property.
Covenant Against Encumbrances:
This covenant means the owner assure the buyer that the property is not in any sort of burden. A encumbrance is anything that can bring negative affect or limit the property, such as a form of mortgage or lien to the tittle of the property. As the owner, it’s your job to ensure the buyer that the property is free from limitations.
Covenant of the Right to Convey
This is a promise made by the seller assuring that they have all the authority to convey the interest in the land that they mean to transfer. This is a very straightforward guarantee that is given by the seller to the buyer.
Covenant of the Right to Convey
The property’s owner needs to assure the buyer that they have all the authority to convey the interest in the land that they mean to transfer. It is a simple guarantee that is given by the owner to the purchaser.
Covenant for Quiet Enjoyment
This is a guarantee made by the owner to the buyer, stated that there shall be no disturbance in their property by any third party. Disturbance here means that the property won’t be claimed. This covenant can be broke and violated if the purchaser is troubled in anyway.
Covenant of Warranty
This is a guarantee made by the seller to the buyer to inform them that the seller will defend the buyer again any claims made by the third party, but it must be reasonable and serious enough for them to get involve. Also, the owner assures the purchaser that they will be compensated for any potential loses they may face by the claim from the third party. Normally, the Covenant of Warranty and the Covenant Quite Enjoyment are the same.
Covenant for Further Assurances
In this type, the seller assures the buyer that they will do anything that is reasonable to perfect the title to interest in land. This actually means that the buyer will be remedied in form of execution of legal documents by the seller if there are issues with the title. This covenant is not widely used in all states; so, you need to see to it in advance.
Covenant for Further Assurances
In this covenant, the owner promises the buyer they will do whatever that is rational to perfect the tittle to interest in the property. What it means is that the buyer will be remedied in form of implementation of legal documents by the owner if there’re issues with the title. This covenant is not widely used in every states, so you need to check in advance.