What is a General Warranty? A Comprehensive Legal Overview

Definition & meaning

A general warranty is a type of guarantee provided by a seller (grantor) to a buyer (grantee) regarding the title of a property. It assures the buyer that the seller will defend the buyer's ownership against any claims from other parties. This warranty includes a promise that if the buyer is evicted from the property due to a superior claim, the seller will compensate the buyer with other land or take other corrective actions. Essentially, it protects the buyer's investment in the property.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A buyer purchases a home with a general warranty. Later, a neighbor claims ownership of part of the property based on an old deed. The seller must defend the buyer's title and, if unsuccessful, provide compensation.

Example 2: A buyer acquires a piece of land with a general warranty. If a third party successfully claims the land, the seller must either resolve the issue or provide the buyer with another parcel of land as compensation. (hypothetical example)

State-by-state differences

State General Warranty Law
California General warranties are common and provide broad protections to buyers.
Texas Warranties must be explicitly stated in the deed; general warranties are widely used.
New York General warranties are recognized but may differ in enforcement compared to other states.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Special Warranty A warranty that only covers claims arising during the seller's ownership. Unlike a general warranty, it does not cover claims from before the seller owned the property.
Quitclaim Deed A deed that transfers any interest the seller has without warranties. Does not provide any guarantee of title, unlike a general warranty.

What to do if this term applies to you

If you're considering purchasing property, ensure that a general warranty is included in the deed. This will protect your ownership rights. You can use templates from US Legal Forms to create or review warranty deeds. If you face a claim against your property, consult a legal professional for guidance on how to proceed.

Quick facts

  • Typical use: Real estate transactions
  • Key parties: Buyer (grantee) and seller (grantor)
  • Protection offered: Defense against title claims
  • Compensation: Possible if eviction occurs due to better title

Key takeaways

FAQs

A general warranty is a promise from the seller that the buyer's title to the property is secure and will be defended against claims.

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