Warranty Deed

The deed is the document that officially transfers ownership from the seller to the buyer. Although there are many types of deeds, the general warranty deed is the one most frequently used in real estate transactions. It also offers the greatest protection. The general warranty deed--sometimes called the warranty deed--warrants the title, not the quality of the home's construction.

It is prepared by the attorney or title company and is signed by the seller at closing. When the deed is recorded in the public records, the new owners become part of the property's chain of title. Therefore, it is important that the deed be recorded properly with correctly spelled names, addresses and legal description of the property. The deed is the sole record that county assessors and recorders rely upon in preparing real estate tax documents.

The warranty deed specifies how the owners have taken title to the property. Generally, there are three types of ownership:

1. Sole ownership.
2. Joint tenancy. In this form of joint ownership, the surviving owner automatically receives the deceased's share of property.
3. Tenancy in common. Though jointly owned, if one owner dies the property share goes to the deceased person's heirs instead of to the other owner.

Although joint tenancy is the most common form of ownership for married couples, consult your attorney, estate planner or CPA for advice on the best option for you. I'd be happy to recommend a professional to you. Just give me a call.