A Warranty Deed is like a bill of sale but it is exclusively used for selling and buying property or real estate. If you want to sell your house, apartment, farm house or a building to someone, you both need to sign the warranty deed and it will serve the purpose of a legal proof of selling the property and transferring the ownership and rights to a new buyer.
Importance of the Warranty Deed:
When you want to sale a real estate property i.e. house, farm, building or a piece of land, you need to transfer the ownership and rights of the property to the buyer. This way when you receive the payment, you give the property to the buyer and he owns it and can do whatever he wants to with the property. If he wants to live in it, rent it, resale it or transfer to his family members, you don’t get to say anything in this process as you don’t have any rights on the ownership of the property after signing the warranty deed. This deed is basically used to confirm the new ownership of the property where on the other hand, it is also an important piece of paper in order to give warranty for the property.
If you sign the warranty deed, you claim that there are no liabilities related to the property and you didn’t hide anything from the buyer. Later, if the buyer finds out that there is a mortgage loan on the property, tax frauds committed by you or someone else is also claiming ownership on the property, he can file a case against you and ask you to take care of the matter because you provided warranty deed by selling the property and signed to be responsible in case of any dispute or liability in future.
Useful Tips for writing the Warranty Deed:
Warranty deed is a formal and legal document and even if you want, you can’t create it by yourself but you need to go to local property department, inform them about the transfer of the ownership of a property and ask them to issue you a warranty deed. This is just like a form in which you need to put names of the seller(s), the names of the buyer(s), the price that both parties agree for the property, the date when the deal was done, the date when the transfer is made and the signature of parties, witnesses and property registrar in the legal department.
You also need to sign under the statement that you take full responsibility for any liability related to the property and if the buyer finds any problem related to tax payments, utility bills, mortgage loan or finds out a claim on the ownership of the property from someone else, he has the right to inform you and you will take care of that matter as you are providing the warranty for the property and claiming you didn’t hide anything while selling the property.
Here is preview of a Free Fill-able Warranty Deed Form as PDF,
Here is download link for this Warranty Deed Form,