What’s the difference between a warranty deed and a home warranty?

Sometimes warranty deeds and home warranties are confused by first-time buyers new to the real estate process. It’s an understandable mistake as both can be used to protect the property. However, a home warranty is a contract with a service provider that will cover the cost of repairs or replacements for household appliances or major systems, while a warranty deed is a legal document that is used to promise ownership rights to the buyer.

What’s the difference between a warranty deed and a quitclaim deed?

A quitclaim deed is used when a property is transferred without a sale between parties who have trust in each other. Quitclaim deeds may be used in a divorce settlement or as a way to transfer ownership of a property to a business, charity, or trust.

What’s the difference between a warranty deed vs. a deed in lieu?

A deed in lieu, also known as a deed in lieu of foreclosure, is used when homeowners want to transfer their ownership of a property to a lender. As the name suggests, these are often used in agreement by owners and lenders as an alternative to the longer and more drawn-out foreclosure process.

If I have a warranty deed, do I still need to do a title search or pay for title insurance?

Even if you have a warranty deed, many lenders will require a title search and title insurance when buying a new home. Even if they aren’t required, a title search can help serve as a backstop to ensure that the title information is up to date and protect you from any potential inaccuracies.

Warranty Deed: What Is It And Should You Get One?