A statutory warranty deed is a written legal instrument used in real property conveyances. This is a form of a warranty deed which is authorized by a specific statute that permits a deed in its statutory form to include any title covenants without the need to state them specifically. The document itself transfers a title to a property from a seller to a buyer. It helps protect a buyer for anything that may arise with the property later on by saying that the seller had no right to sell it in the first place. This is an abbreviated version of a regular warranty deed that is written with state law in mind.
How it Works
The seller of the property “the grantor” and the buyer “the grantee” are both listed on this document. The property being transferred is also identified. The sellers’ specific guarantees or “warrants” are listed as well as the fact that they are the owner of the property and that no one else has claim with said property. The deed mentions it is transferring all ownership rights to the buyer listed and if anything is wrong with it, the grantor will compensate the grantee and defend against any specific claims associated with these issues.
Any promises made in this legal document are backed by a title insurance policy that is purchased by the grantor (seller). If any challenges arise during the transfer, the title insurers will pay whatever compensation is due to the buyer or grantee as well as the legal costs of fighting this in court. Before a policy is issued, the title insurer will be required a title examination, which is a records review of anything pertaining to property ownerships to make sure that no claims are to be made.
In states such as California, a statutory warranty deed is known as a grant deed.