What is a General Warranty Deed?

When one sells a residential property the seller guarantees that they hold clear title and has the right to sell. A clear title is one that has no liens or encumbrance other than what is known in public records, such as a mortgage loan, home equity loan, or home equity line of credit. This guarantee extends to the property’s historical records.

The grantor of a general warranty deed confirms there are no liens on the property, the seller is the legal owner and has the right to sell the property, and guarantees that if title ever fails, the grantee will be compensated for any loss.

Usually the grantor is a title company. One of the most important documents to hold on to from your closing, aside from a survey, deed, and appraisal, is your title commitment. If one encounters problems with title, it is always best to have the title company check with the original grantor of the title commitment issued when one first purchased the home. The original grantor may be the most likely to reissue a title commitment since they incurred the original liability of guaranteeing a clear title on the property. If the original title company that issued a commitment for a general warranty deed does not want to issue another title commitment, the owner may have the right to exercise the policy insurance.

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