What does a warranty deed convey?

A warranty deed conveys clear and marketable title, which means that the seller guarantees they hold the legal right to transfer ownership and that the title is free of any significant encumbrances, such as liens or other claims. This type of deed offers the highest level of protection to the buyer because it assures them that they will not face issues with ownership after the transaction.

In essence, with a warranty deed, the grantor (seller) not only transfers their interest in the property but also backs it up with promises and warranties about the title's status. If any defects or claims arise against the title after the sale, the buyer has legal recourse against the seller to address those issues.

This assurance of a clear and marketable title is vital for buyers as it facilitates their ability to sell or mortgage the property in the future, preserving its value and marketability. In contrast, other types of deeds do not provide the same level of protection and may carry different implications regarding the title’s condition and the seller's responsibilities.