Like their name implies, warranty deeds offer guarantees about a house. There are two main sorts of warranty deed,”general” and”special.” Except they cover, they are alike in every way. In California, warranty deeds are called”grant actions” and differ slightly from warranty deeds in different nations.
Deeds in real estate are files that transfer certain rights from a”grantor” (generally the seller of the property) into a”grantee” (generally the buyer of the property). There are two main sorts of warranty deeds:”general” and”special.” In both types, five things are guaranteed to the grantee: the right to possess the property (called”seisin”); the right to openly enjoy the house; the right to sell the house; the fact that there aren’t any claims against the property; and that the home’s title is clear. These five things are called”covenants.”
General Warranty Deed
A general warranty deed guarantees to the grantee that both covenants named above are accurate, and when any one or more of them ever turns out to not be accurate because of something that pre-dates the grantee’s ownership of the house, then the grantor will be completely responsible for any problem that arises.
Special Warranty Deed
A warranty deed ensures the same things except its duration of coverage is briefer, that the general warranty deed covers. Because of this, it’s sometimes called a”limited warranty deed.” It states it will guarantee the covenants, but just for problems that occur due to causes that date in the time once the property was owned by the grantor, but not until that moment.
California Grant Deeds
A California grant deed works just like a general warranty deed, but only includes the last two covenants: The property is free of any claims against it, along with the property’s title is clear.
Limitations of Warranty Deeds
If a challenge is made to the legitimacy of any of the covenants, then the grantor must show the challenge to become untrue. If the grantor can’t do that the grantor could have to pay a large amount of cash to make things right. In an worst-case scenario, the grantor might need to pay back into the grantee the original amount of cash the grantee compensated for the property, plus the cost of any improvements the grantee made while owning the property.
How to Submit A Warranty Deed
By legislation, warranty actions and grant actions don’t need to be filed (“recorded”). But, recording them is the only way the grantee can safeguard his rights, should one of the covenants in the deed be contested. Actions should be drawn up by real estate attorneys and recorded in the county where the property is situated. Go to the Office of the County Recorder. There will be a little recording fee. California grant actions are easy enough that a standard pre-made form (available online or at any of California’s 58 County Recorder’s Offices) may be used and filled from the Grantor.