Many people are aware of what a deed is and the function it performs. However, many are unaware that there are many different types of deeds. A Florida warranty deed is just one type of deed, but it is an important one. A Warranty deed is most beneficial to purchasers of real property, as it provides a guarantee that the title is valid. It is important to know when to use a Warranty deed.  

What is a Warranty Deed in Florida?

The Warranty deed is one of the most common types of deed, along with quit claim deeds. These two deeds are recognized not only in Florida, but throughout the entire country. When a person is interested in purchasing real property, a Florida warranty deed is much more appropriate and beneficial than a quit claim deed. Through a warranty deed the grantor of the property, or the person transferring it, provides a number of protections to the grantee, or the person buying the property.

A warranty deed guarantees to the purchaser of the property that the seller is the legitimate owner of the property and therefore has the right to sell it. A warranty deed provides reassurance that the title does not contain any defects that could impact the grantee’s future right to ownership. Warranty deeds may also guarantee that there are no other ownership claims against the property. Additionally, warranty deeds provide a legal remedy for grantees in the event it is found the title does contain a defect.

Types of Florida Warranty Deeds

There are two different types of warranty deeds available. A special warranty deed will guarantee that there were no issues with the title only during the time the grantor owned the property. A general warranty deed, on the other hand, provides the most protection to purchasers of property. A general warranty deed guarantees that any title issues that arose during the grantor’s time of ownership have been resolved and that there are no prior unresolved issues on the title.

When to Use a Florida Warranty Deed

If you are purchasing property from a family member, a quit claim deed may be more appropriate than a Florida warranty deed. However, in most real estate transactions, the buyer and seller are strangers to each other. In this case, a warranty deed is an absolute must, and something the purchaser’s lender will likely require to ensure there are no real problems with the property in the future.

Documentary Stamp Taxes (Transfer Tax)

As with all Florida deeds, depending on the circumstances and facts surrounding the deed transfer, Florida documentary stamp tax may be due. There are many exceptions but be sure to verify whether or not this tax applies to your warranty deed. The transfer tax can be substantial, so caution is advised before executing your deed. Penalties for failure to pay documentary stamp tax are severe. Let us guide you as to whether or not transfer tax might be due.

We Can Help You Obtain a Warranty Deed in Florida

If you are thinking about purchasing property in the Sunshine State, it is critical that you obtain a Florida warranty deed. At My Florida Deed, we can provide this deed and advise on how to ensure it is properly completed. Complete the form below or contact us to learn more.