What is the primary purpose of a warranty deed?

The primary purpose of a warranty deed is to guarantee that the grantor holds clear title to the property. This type of deed provides assurances to the grantee (the person receiving the property) that the grantor has the legal right to convey the property and that there are no undisclosed encumbrances or claims against it. Essentially, the warranty deed includes covenants that protect the grantee, ensuring that if any issues with the title arise after the transfer, the grantor is responsible for resolving them. This level of assurance is a fundamental reason why warranty deeds are widely used in real estate transactions, as they instill confidence in the buyer about the ownership rights being conveyed.

In contrast, a warranty deed does not provide partial interest in the property, outline rental terms, or establish utility rights, which are covered by other legal documents and agreements when dealing with real property.