In this post we’ll explore what you should know about warranty deeds before you buy a property in Florida . Knowing about this important legal document helps you to understand its key differences from a quitclaim deed. Understanding these key differences, and the notarization requirements makes you an informed buyer.
Sections
The Key Differences Between Warranty and Quitclaim Deeds
Protections That Warranty Deeds Provide
In-Person Notarization Requirements for Warranty Deeds
Remote Online Notarization (RON) of Warranty Deeds
What is a warranty deed?
A warranty deed is a legal document that transfers ownership of real estate from one party to another. In a real estate purchase the seller, also known as the grantor, conveys title of the property from he/she to the buyer, that’s you!
The key differences between warranty and quitclaim deeds
The main differences between warranty and quitclaim deeds are the levels of protection a warranty deed offers to the buyer and the extent of the seller’s ownership interest in the property being sold. On the other hand, quitclaim deeds offer no such protections. They simply transfer the seller’s ownership interest in the property to the buyer without any guarantees about the title or ownership of the property. The buyer assumes all the risk with the property transfer. Learn more about quitclaim deeds in this post.
Protections that warranty deeds provide
Warranty deeds offer 3 main protections:
- The seller (grantor) owns the property and has the right to sell it.
- That the property is free and clear of any liens, encumbrances, or other claims against the property that could affect ownership, once transferred.
- With the warranty deed, the seller is legally responsible for defending the buyer’s ownership of the property against any third-party claims. Any title defects or encumbrances discovered after the sale may require the seller to compensate the buyer for any losses that they incur as a result.
For example, suppose seller Jane sells her property to buyer Jim. Jane signs the warranty deed transferring her ownership interest in the property over to Jim. After the sale a contractor who did work on the house 2 years ago notifies Jim that Jane never paid him for the work he did, so he put a lien on the house. The contractor files a suit against Jim for the amount owed since he is the current owner. Jim decides to sue Jane for breach of warranty since the lien was not disclosed or remedied before the sale. Jim wins the lawsuit and Jane pays any damages or costs that Jim incurs because of the undisclosed property lien.
In-Person notarization requirements for warranty deeds
Notarization of warranty deeds usually occur as part of a real estate loan package signing. The signer(s) must personally appear before the notary and two disinterested witnesses to sign the warranty deed in their presence. In addition to personal appearance the signer must present a current, valid ID to the notary for verification. These are the requirements whether the notarization is taking place using paper or in-person electronic notarization (IPEN).
Remote Online Notarization (RON) of warranty deeds
Warranty deeds can also be notarized electronically via remote online notarization (RON). The document is notarized electronically while the notary and the signer are connected through a secure video conference. The notary will verify the signer’s identity using electronic ID verification, watch them sign the document, and then apply an electronic signature and stamp. As you can see personal appearance and identity verification are still required for proper notarization.
Conclusion
In conclusion, warranty deeds are important legal documents used in real estate transactions in Florida. They provide a guarantee that the seller has clear title to the property and is legally able to sell it. And, in the event of legal challenges such as undisclosed liens or encumbrances the warranty deed provides certain protections to the buyer.
If you’re closing on a home purchase, or coordinating the closing in the Palm Beach area you can request an appointment with me to complete your signing at your convenience!
*I am not an attorney therefore the information in my posts is not legal advice.
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