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 Wyoming, a warranty deed is a legal document used to transfer property ownership with the assurance that the title is clear of any defects, liens, or encumbrances. The seller, by providing a warranty deed, guarantees to the buyer that they hold a good and marketable title and that they have the right to sell the property. This type of deed includes covenants that protect the buyer, ensuring that the property title is free from any claims and that the seller will defend against any future claims to the title. The use of a warranty deed is common in transactions where the buyer is obtaining financing, as lenders often require the security that comes with the guarantees provided by a warranty deed. To further mitigate the risk of title defects, title insurance is typically purchased. This involves a title search by the title company or the buyer's attorney to verify the seller's ownership and to ensure there are no undisclosed co-owners, liens, or other issues with the title that could affect the buyer's interests post-sale. The combination of a warranty deed and title insurance provides a high level of security and peace of mind for property buyers in Wyoming.