A general warranty deed is when a seller gives assurance that a certain title that he or she is holding is clear and legal and that guarantees the buyer that the real estate he or she is buying is legal. This is very important in transactions specifically those involving the transfer or title.
A general warranty deed does not only give assurance but information as well about the property to be bought. This information is not only about how long the property has been owned by the seller but other information as well such as the property’s history or where it originated.
A general warranty deed is made up of important portions which serve as the basis of its validity. It should clearly state that the property being sold has no debt and the person selling it should give assurance to the buyer as well that he or she is the legal owner which gives him or her the power to sell a certain property.
Also, it is important for the buyer and the seller to have this agreement stating that the new owner would be liable for any losses or damages in the future. A general warranty deed is made up of six different forms of covenants for title and these covenants are divided into two, namely present covenants and future covenants which differ on purpose and content.
Under present covenant are Covenant of Seisin & Covenant of Right to Convey and Covenant against Encumbrances while future covenants include Covenant of Warranty and Covenant of Quiet Enjoyment and Covenant of Further Assurances.