The deed type WD stands for Warranty Deed. It is a crucial document in real estate transactions, offering the highest level of protection to the buyer.
Understanding the Warranty Deed (WD)
A Warranty Deed is a specific type of deed where the person transferring the property, known as the grantor (seller), provides significant guarantees to the person receiving it, the grantee (buyer). These guarantees are legally binding promises regarding the property's title.
The core essence of a Warranty Deed is that the grantor assures the buyer that they possess a clear title to the piece of real estate and have the absolute legal right to sell and transfer it. This means the property is free from any undisclosed liens, encumbrances, or title defects, not just during the grantor's ownership but throughout the property's history.
Key Guarantees Provided by a Warranty Deed
A Warranty Deed provides several specific covenants (promises) from the grantor to the grantee, offering robust protection:
- Covenant of Seisin: The grantor guarantees that they are the rightful owner of the property and have the legal right to convey (transfer) the title.
- Covenant Against Encumbrances: The grantor promises that the property is free from all undisclosed liens, mortgages, easements, or other claims that could affect its value or use.
- Covenant of Quiet Enjoyment: The grantor guarantees that the grantee's ownership will not be disturbed by any third-party claims or lawsuits challenging the title.
- Covenant of Further Assurances: The grantor promises to take any necessary actions in the future to defend the title and correct any defects that may arise.
- Covenant of Warranty Forever: This is the most significant promise, where the grantor pledges to defend the grantee's title against any claims, regardless of when those claims originated (even before the grantor owned the property).
Why the Warranty Deed is Preferred
For buyers, especially in residential real estate, the Warranty Deed is often the preferred and most common type of deed. It offers the greatest peace of mind because the seller takes full responsibility for the title's validity and promises to defend it against any future claims. This level of protection significantly reduces the buyer's risk.
Understanding the Parties Involved
In a Warranty Deed transaction, two primary parties are involved:
| Party | Role |
|---|---|
| Grantor | The seller, who transfers ownership. |
| Grantee | The buyer, who receives ownership. |
When You Encounter a Warranty Deed
Warranty Deeds are standard in most home purchases and sales, particularly in the secondary market (resale of existing homes). When you buy a house, your attorney or title company will typically ensure that you receive a Warranty Deed, securing your ownership against potential future disputes.
Understanding the "WD" designation is essential for anyone involved in buying or selling real estate, as it signifies the highest standard of title assurance provided by the seller.
