A warranty deed is a deed that transfers ownership of real property—and guarantees certain characteristics of the title (ownership) being transferred. Under a warranty deed the seller guarantees or warrants that the title to the property (ownership) is good, clear, and free from encumbrances, liens, mortgages, and other claims. These guarantees of good and clear title are also known as covenants.

A warranty deed—also known as a general warranty deed or a full covenant and warranty deed—provides the greatest amount of protection to a purchaser of property and is often used when a buyer is trying to get financing for the purchase of a property.

Because a warranty deed places responsibility on the seller for ensuring title to the property is clear of liens, claims, and encumbrances, title insurance is often used to protect against the risk of claims and to facilitate the sale of the property.

When the parties to a sale transaction purchase title insurance the title company or the buyer’s attorney will perform a search of the public records regarding ownership of the property to make sure the purported seller of the property owns the property and that there are no other co-owners of the property, or liens, claims, or encumbrances on the property that might compete with or be made against the buyer after the sale transaction is completed.

In Massachusetts, a warranty deed is a legal document used to transfer property ownership with the highest level of buyer protection. It includes guarantees from the seller that the title is free of any liens, encumbrances, or other claims. This type of deed makes explicit covenants that the title is clear, ensuring the buyer receives good and marketable title to the property. When a warranty deed is used, it typically indicates that the seller is responsible for any title defects that may arise from the past. To mitigate the risks associated with title defects, title insurance is commonly purchased. This insurance, often facilitated by the buyer's attorney or a title company, involves a thorough search of public records to confirm the seller's ownership and to ensure there are no undisclosed co-owners, liens, or other encumbrances that could affect the buyer's title post-sale. The use of a warranty deed is particularly common in transactions where the buyer is obtaining financing, as lenders usually require clear title as a condition for a mortgage.