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Warranty Deed

In real estate, specifically within the Tenants in Common (TIC) investments, a Warranty Deed is a legal document that is used to transfer ownership of property. This type of deed provides the grantee (the person receiving the property) with certain guarantees from the grantor (the person transferring the property). Here are the key elements defined in a Warranty Deed within this industry:

  1. Title Guarantee: The grantor guarantees that they have a clear title to the property and the legal right to sell it.
  2. Covenant Against Encumbrances: The grantor guarantees that the property is free of liens or encumbrances, except as noted in the deed.
  3. Quiet Enjoyment: The grantor guarantees that the grantee’s possession of the property will not be disturbed by anyone with a superior claim.
  4. Further Assurance: The grantor promises to deliver any additional documentation necessary to ensure the grantee’s title if needed.
  5. Warranty Forever: The grantor guarantees that if the title ever fails, they will compensate the grantee for the loss, which is a promise that extends beyond the time of the sale.

In a Tenants in Common arrangement, multiple individuals hold an undivided fractional interest in the property. Each tenant in common has the right to use and enjoy the entire property, even though they only own a part of it. When one of the tenants in common wants to transfer their share of the property, they may use a Warranty Deed to do so, extending these guarantees to the new co-owner. However, it’s essential to note that the guarantees in the deed apply only to the interest being transferred and not necessarily to the entire property.