Warranty Deed in Florida

In Florida, a warranty deed is a common legal document used in real estate transactions to transfer property with guarantees about the title.

It provides the highest level of protection to the buyer, assuring that the seller holds clear title to the property and has the right to sell it.

What Is a Warranty Deed?

A warranty deed is a document that not only transfers ownership of property from one party (the grantor) to another (the grantee) but also explicitly guarantees that the grantor holds a clear title to the property.

This means the property is free of liens, encumbrances, or other title defects.

If any claims against the title arise after the property has been transferred, the grantor is legally obligated to defend the grantee against those claims.

Benefits of Using a Warranty Deed

• Security and Peace of Mind:
  • Provides grantees with a high level of security and peace of mind knowing that the property they are purchasing is free of undisclosed title problems.
• Enhances Property Value:
  • Properties sold with a warranty deed often command a higher market value due to the assurance of a clear title.
• Facilitates Easier Financing:
  • Lenders are more willing to finance purchases with a warranty deed due to the clear title assurance, making it easier for buyers to secure mortgages.

Understanding Warranty Deeds

The person who signed the warranty deed could be held liable to the new owner for any problems or issues with the property’s chain of title.

For example, suppose a seller sells the property to a buyer with a warranty deed. Later, the buyer discovers that another person had a prior valid claim to the property title.

Suppose this other person sues the buyer to recover the property. In this example, the buyer has a claim against the seller for their financial loss due to the other person’s claim because the seller guaranteed good title in their warranty deed.

Warranties Included in a Warranty Deed

A warranty deed includes five covenants, or warranties of title:

• Covenant of seisin (seller warrants that they are the sole owner of the property)
• Covenant of the right to convey (seller warrants that they have the legal right to convey the property)
• Covenant against encumbrances (seller warrants that there are no undisclosed restrictions or encumbrances against the property, such as liens, judgments, or other limitations)
• Covenant of quiet enjoyment (seller warrants that the buyer will not be affected by a defect in title)
• Covenant of general warranty (seller warrants that the seller will protect buyer from any harm caused by title defects)

When Are Warranty Deeds Used in Florida?

A  warranty deed is the most common type of deed used between a buyer and seller of Florida real estate.

A warranty deed places substantial risk on the property seller.

Therefore, a seller is not generally willing to execute a warranty deed unless compensated monetarily by the buyer through a purchase and sale transaction.

If you are looking to have your property transfer on death without probate, you should use a lady bird deed instead.

Title Insurance with Warranty Deeds

In almost all buyer-seller transactions involving warranty deeds in Florida both the buyer and the seller will purchase title insurance.

The title insurance will conduct a title search and ensure that the seller has good and valid title to the property.

Then, if the buyer discovers that there is a title issue, the buyer makes an insurance claim with the title insurance provider to reimburse them for the financial loss.

The title insurance in a sense substitutes for the warranties provided by the warranty deed.

he buyer who discovers a title property likely will make a claim against the insurer rather than asserting a claim against the seller for breach of title warranties.

In most real estate sales, a closing agent or title company will supply a form warranty deed for the seller to sign.

Then the title company will cause the warranty deed to be recorded.

Warranty Deed Rules and Requirements

The requirements for a warranty deed in Florida are listed in section 695.26 of Florida law.

The statute says states the deed must include:

• The name and address of the individual who prepared the deed.
• The name and address of the current owner (also called the grantor)
• The name and address of the new owner (also called the grantee)
• Original signature of the grantor (note: the grantee does not need to sign the deed)
• Two witness signatures
• A valid legal description
• Full notarization

Cost of Warranty Deed in Florida

There are two parts to the cost of a warranty deed in Florida: the recording costs and the preparation cost.

A recording fee is charged by the county where the deed is recorded.

The recording cost is the same regardless of who prepares the warranty deed.

The amount of the fee is based on the amount of the mortgage of the property or the sale price.

The preparation cost is charged by the attorney preparing the deed.

An experienced attorney will charge between $250 and $600 for the preparation of the warranty deed in most cases. Sellers can prepare their own warranty deeds for free.

Warranty Deed FAQs