STATUTORY WARRANTY DEED

STATUTORY WARRANTY DEED
STATUTORY WARRANTY DEED

When you sell or otherwise transfer property, you usually need to file a deed that identifies the property, who transferred it and to whom. Different types of deeds perform various tasks and offer various degrees of certainty regarding real estate ownership. Deeds include general warranty deeds, quitclaim deeds, and statutory warranty deeds. A statutory warranty deed is a document used to transfer real estate ownership. This page explains what a statutory warranty deed entails in various states, including Alabama, Washington, and Florida.

What is Statutory Warranty Deed?

Land ownership is transferred through a statutory warranty deed, often known as a special warranty deed. The person transferring the land, known as the grantor, makes specific promises to the person receiving the land, known as the grantee, under this sort of deed. These assurances are referred to be warranties or covenants in the law. A specific form that is utilized as a statutory warranty deed was developed by legislative authorities.

It helps to comprehend statutory warranty deeds by contrasting them with two other common deed forms in the United States. The grantee is not given any kind of warranty under the quitclaim deed kind of deed. When using a quitclaim deed, the grantor is merely conveying any interest he may have in the subject property. As a result, a grantee of this kind of deed is not protected in any way from third parties asserting their ownership interest in the land. Additionally, it offers no defense against claims arising from encumbrances on the land.

What Distinguishes A Statutory Warranty Deed From Other Types Of Deeds?

Both a statutory warranty deed and a general warranty deed guarantee that the grantor has full legal ownership of the property that is being transferred to the grantee. If a claim is later filed against the property, the grantor will be required to defend the grantee. A statutory warranty deed is a shorter version of a warranty deed that was created by your state’s legislation. It may or may not expressly say that the title is guaranteed to be clear. Despite being implicit, this guarantee is nonetheless enforceable under the law because it is in statutory form. The outcome is the same for both forms kinds.

Special warranty deeds, which offer a constrained warranty on potential title problems that might have occurred while the property was possessed by the person transferring it, are permitted in some countries. The buyer would be impacted if future title issues emerged for previous owners, but the unique guarantee would not cover them.

A quitclaim deed does not guarantee that there are no other claims against the property, unlike a statutory warranty deed, which assures the title but only transfers the grantor’s rights. In contrast to a general warranty deed, a specialized warranty deed only guarantees that no claims were made against the title while the grantor was the owner of the property. The grantor is only accountable for claims that happened within the grantor’s term because it does not guarantee that there were no claims present before the grantor obtained possession.

Statutory Warranty Deed Alabama

A limited warranty of title is offered under the Alabama statutory warranty deed form. In a statutory warranty deed, the party transferring the property assures that he or she has not taken any actions that could compromise the title, but he or she makes no representations of any events that may have occurred before the transfer. Statutory warranty deeds are frequently used in Alabama:

  • To transfer assets to a trust that the transferor controls or receives benefits from, such as a living trust;
  • To transfer assets to a corporation owned by the transferor, such as a limited liability company;
  • For the sale of real estate that is either commercial or multifamily;
  • To transfer ownership of a property to a new owner who does not care about the limited warranty of title and is acquiring title insurance on the property; or
  • Other situations are when the current owner does not wish to be held legally liable for title issues that existed before the current owner’s ownership of the property.

For a deed to be recognized as an Alabama statutory warranty deed, additional language must be included. Our deed preparation service automatically includes this text, which is legal in every county in Alabama.

How to Draft a Statutory Warranty Deed in Alabama

The Alabama Statutory Warranty Deed is legal according to state law (Ala. Code 35-4-271). Although the law is poorly written, it indicates that employing certain words, such as a grant, bargain, and sale, has certain legal repercussions. Unless the body of the deed contains provisions to the contrary that designate the deed as a general warranty deed, these phrases invoke the implied warranties of the title associated with a statutory warranty deed.

The deed must also comply with all other legal requirements established by Alabama law and should follow the customary practice of Alabama real estate professionals, in addition to the specific language that must be included to create an implied warranty and the language that must be excluded to avoid creating a general warranty.

Common components include a proper legal description, a statement of consideration, appropriately worded acknowledgments in the Alabama format, and specifications for margin, font, and page size. The deed should specify how co-owners will keep title if there are numerous owners involved.

A deed may be deemed faulty if the legal standards of Alabama are not met. Possible flaws include a transfer that is not legitimate or one that is valid but carries a guarantee that is not what was intended. Making sure that the wording is consistent is also crucial. Inconsistent terminology in the deed may necessitate litigation or other forms of legal action to address issues with the wrongly drafted deed. The precise text and formatting necessary to produce a legitimate Alabama statutory warranty deed are included in the deeds produced by our Deed Generator.

Statutory Warranty Deed Washington

A type of deed that offers an unrestricted warranty of title is the Washington statutory warranty deed. That the current owner has a clear title to the property is a 100% guarantee. The warranty is not time-bound to the period of ownership by the current owner. This means that any title problems that existed before the present owner purchased the property may be considered his or her legal responsibility. Statutory warranty deeds are frequently utilized in Washington:

  • When a buyer pays the entire value of a seller for residential property;
  • When the purchaser has no intention of obtaining title insurance; or
  • In any other situation where the existing owner feels at ease taking on the legal risk of an unrestricted guarantee of title.

To ensure that the deed is recognized in Washington as a statutory warranty deed, specific language must be included. Our deed preparation service automatically includes this phrase, which is legal in every county in Washington.

How a Washington Warranty Deed Form Works

With a full warranty of title, a Washington statutory warranty deed (also known as a general warranty deed or just a warranty deed) conveys Washington real land from the present owner (grantor) to the future owner (grantee).

The warranties included in a Washington statutory warranty deed form are “statutory” in the sense that they are officially stated in the statute. A grantor who signs a Washington warranty deed form affirms the following under RCW 64.04.030:

  • The grantor’s ownership of and authority to transfer the property;
  • That the grantor is unencumbered by any liens or mortgages except those listed in the deed;
  • The property will be available for the grantee to use and enjoy without interruption from outside parties (peaceful enjoyment); and
  • That the grantor will protect the property’s title against anyone who could assert a claim to it.

A Washington bargain-and-sale deed form, which only requires the grantor to defend the title against issues that arose while the grantor owned the property, differs from a Washington statutory warranty deed form in that it requires the grantor to defend the title against anyone who might claim a right to the property.

How to Draft a Statutory Warranty Deed in Washington

RCW 64.04.030 permits the use of statutory warranty deeds in Washington; these deeds must adhere to its specifications, including the text relating to right vesting and warranty. Additionally, the deed must adhere to the broad standards that govern other Washington deed forms. These specifications include a legitimate legal description, a statement of consideration, an explanation of how co-owners will hold title, specifications for font size and page format, and criteria for signatures and notarization.

Each deed created by our online deed preparation service was drafted by an attorney to comply with Washington law and be accepted for recording in every county in Washington.

 Statutory Warranty Deed In Florida

A type of deed that offers an unrestricted warranty of title is the Florida statutory warranty deed. That the current owner has a clear title to the property is a 100% guarantee. The current owner’s ownership is not the only period covered by the Florida statutory warranty deed. This means that any title problems that existed before the present owner purchased the property may be considered his or her legal responsibility. A statutory warranty deed is frequently used in Florida:

  • When a buyer pays the entire value of a seller for residential property;
  • When the purchaser has no intention of obtaining title insurance; or
  • In any other situation where the existing owner feels at ease taking on the legal risk of an unrestricted guarantee of title.

To verify that the deed is a warranty deed, specific language is needed. Our deed preparation service automatically includes this text, which is legal in every county in Florida.

How a Florida Statutory Warranty Deed Form Works

A deed with a full warranty that covers all title covenants is known as a Florida statutory warranty deed and is used to transfer real estate in Florida. A person who signs a warranty deed certifies that they are the legal owner of the property and have all relevant rights. The person acquiring the property has the right to sue the transferor for breach of warranty if the title to the property has a problem.

How to Draft a Statutory Warranty Deed in Florida

The generic guarantee language is required by law, although the Florida statutory warranty deed will take different forms. This sample phrase to be used in a Florida statutory warranty deed form is provided by Florida Statute 689.02

This language just serves as a beginning point, as is typical of most statutory examples. Florida’s statutory warranty deed does not exactly follow this phrase and is instead adjusted to reflect the particulars of the transaction.

The Florida statutory warranty deeds must also adhere to the general standards and best practices that apply to all Florida deeds in addition to these statutory requirements. These prerequisites include a legitimate legal description, a declaration of consideration, and an explanation of how co-owners will hold the title. The form should also have the usual fields for the grantees’ social security numbers and the property’s appraisal parcel identification number. The identifying number for the appraisal cannot be used as the legal description.

The correct font size, page margins, and other page format criteria must all be met for a Florida statutory warranty deed to be recorded in Florida. Additionally, it must be formatted according to Florida law’s approved notary acknowledgment form and include the proper signature blocks for the grantor and each witness.

Conclusion

As a result, statutory warranty deeds are a condensed version of a long-form general warranty deed with the same duties. It confirms that the person transferring the property has full legal control over it. The use of statutory warranty deeds provides the best protection for the property buyer.

Frequently Asked Questions

What is a statutory warranty deed Oregon?

Property in Oregon is transferred from an owner to a buyer via an Oregon general warranty deed. This kind of deed includes a promise from the seller that they are the legal owners of the property, have the right to sell the property, and have cleared the property of all liens and encumbrances.

What is the most common type of warranty deed?

The most common sort of deed used to transfer fee simple ownership of a property is a general warranty deed. A broad warranty deed, as opposed to a quitclaim deed, does attest to the grantor’s ownership and legal right to sell.

Does a deed need to be notarized Oregon?

Oregon Deed Execution Requirements

The grantor, who is the current owner transferring real estate, or a legitimate agent or attorney acting on the grantor’s behalf, must sign an Oregon deed. Notarization. The signature of the current owner must be acknowledged in front of a notary or another authorized official.

What is the best type of deed to get?

The very best is a warranty deed. It shields you from all property title problems, both present, and past, as well as any unpaid debts or liens.

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