Why do you need to use a Warranty Deed?
A Warranty Deed serves the purpose of a legal document used in the real estate business. Warranty deeds guarantee proper and lawful execution of the commercial deal between the seller and the buyer.
An appropriately drafted Warranty Deed fully protects the rights and interests of both parties, making sure that each party has the right to take legal action if the other party causes some misconduct. These rights can be of possession, exclusion, disposition, and the right to control.
The warranty deed pledges or guarantees that the owner owns the property free and clear of any liability, mortgages, or other encumbrances. Warranty deeds also help in maintaining a record of the real estate for taxation purposes. The deal and Selling property may have a reasonable impact on your tax file, which you need to report to the native Revenue Service (RS). Documenting and drafting your real estate transactions can save your time as well as legal actions.
When do you need to use a Warranty Deed?
When you are either selling or purchasing any real estate property, you need to document your financial transactions. Albeit Warrant deeds are not required for all transactions but highly recommended for single large purchases, particularly for real estate. A written legally drafted contract will give each party a precise detail regarding the sale and how the transaction will take place.
What are the main things that go on a Warranty Deed?
It includes crucial information like a detailed description of the property, payment terms, and the registration/possession date, which shows that both parties are strongly committed to the deal. Ideally, the Warranty Deed should include the following details:
- Details about the Seller(Grantor) and the Buyer(Grantee) i.e., Name, Address, Profession, etc.)
- Information about the item being sold
- When will the item be delivered to the Grantee
- How much is the buyer paying for this item
- Modes of Payment such as cash, shares, etc
- Method of Dispute resolution
Besides this, the Warranty Deeds also include the country’s laws that will execute behind the lines in the Agreement. In addition to this, the necessary Tax information which the buyer is supposed to be aware and need to pay, which should be described precisely in a Warranty Deed.
What are the most common mistakes to avoid?
There are the following mistakes that people most commonly make when writing a real estate purchase agreement. Making any one of these mistakes can put your real estate property at stake and a risk to lose your earnest money.
- Doing a deal with the wrongful person
- Drafting in unlawful diction.
- Incorrect names, address or contact of the Buyer or Seller
- Not choosing the right way of Buy-Sell Agreement
- No effective Dispute Resolution Method
- Not specifying the closing conditions
- Failure to include all required third parties
- Lack of notary seal
- Missing marital status of grantors on a non-homestead statement
Do I need to use a lawyer, accountant or notary to help me?
You do not need a lawyer, accountant, or notary to write a Warranty Deed for you. If you have planned to buy or sell the commercial property, you can create your Warranty Deed by using our Form Pros.
Form Pros take the guesswork out of creating legally-binding documents making sure your data is 100% secure & private. With a staff of lawyers, entrepreneurs, and tax professionals on board to assist you with questions, and intuitive software to guide you through each step of the process, you can have the documents you need for a fraction of the cost you would pay an attorney.
Why use our Warranty Deed generator?
Our easy to use purchase agreement generator was created by a staff of lawyers and business experts, and you can have a one for a fraction of the cost you would pay an attorney. Our tool has a subscription plan so you can create unlimited purchase agreements at a low cost.
We also offer 100% money back guarantee, and a free 14-day trial.