A warranty deed is a Florida deed that transfers ownership with promises, called covenants or warranties, about the title. The grantor promises that the grantor owns the property, has the right to sell it, that it is free of encumbrances other than those listed in the deed, and that the grantor will defend the title against lawful claims. If a covered title problem appears, the buyer can look to the grantor.
The Statutory Warranty Deed
Florida law provides a short statutory warranty deed form. When a deed uses the words "fully warrants the title to said land and will defend the same against the lawful claims of all persons whomsoever," the law reads in the full set of general warranties. That is why a Florida general warranty deed can be only one or two pages long.
Types of Warranty Deeds
General warranty deed: The grantor's promises cover the entire history of the title, including problems that arose before the grantor owned it. Commonly used in Florida home sales.
Special warranty deed: The grantor's promises cover only problems that arose while the grantor owned the property. Common in commercial sales, bank sales after foreclosure, and sales by builders, estates, or trustees.
Key Differences
Feature | General Warranty Deed | Special Warranty Deed |
|---|---|---|
Warranty period | Entire history of the title | Grantor's ownership only |
Buyer protection | Broadest | Limited |
Common use | Residential sales | Bank, commercial, builder, and estate sales |
Grantor liability | Covered defects from any period | Covered defects from the grantor's ownership |
Warranty Deeds and Title Insurance
A warranty is only as good as the grantor's ability to pay a claim. That is why most Florida buyers also buy an owner's title insurance policy. Title insurers issue policies after a title search, whichever deed is used.
When a Warranty Deed Is Used
Home sales: buyers and lenders usually expect a general warranty deed.
Bank and foreclosure sales: sellers that never lived in the property usually give a special warranty deed.
Commercial sales: special warranty deeds are common, with title insurance covering earlier periods.
Family transfers: a warranty deed can be used, but a quitclaim deed or lady bird deed is more common, since the grantor may not want to take on warranty liability to relatives.
QuickDeeds prepares general and special warranty deeds for a $350 flat fee.