Under Alabama law what is the difference between a deed with or without warranty?

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Question:

Under Alabama law what is the difference between a deed with or without warranty?

Answer:

Under Alabama deed transfer laws, there are a few different types of deeds available. Examples include:

  • Quitclaim deeds
  • Warranty deeds
  • Grant deeds

Each of these has different properties associated with it, but the most important distinction to understand is the difference between a deed with a warranty and a deed without a warranty. 

  • A warranty deed contains covenants, or legal promises. The warranty deed essentially involves the person transferring the land out of his name making a warranty to the person he is transferring the land to. The seller (or person transferring the land) is warrantying that the land is free from other claims against it. In other words, he is promising that no one has a lien, no one else owns it, and that the new owners are going to own the whole thing without any encumbrances or anyone else with a claim on it.  If someone else later turns up and tries to make a claim on it, the person who transferred it under the warranty deed will be responsible for paying that claim and taking care oft he problem. 
  • A deed without a warranty doesn't involve such a promise. The transferrer in this case is transferring to the new owner whatever rights he has in the property. If someone else has a lien or a claim on it, that lien goes with the transfer and it stays on the property and the new owner gets stuck with it. The transferrer can only give up the rights he has, and if those rights are encumbered by claims on the land, then the new owner gets those claims right along with the land. 

To get help protecting yourself during any type of property transfer, you need to have a lawyer look over all documents and paperwork and make sure the deed transfer is a good one. 

This article is provided for informational purposes only. If you need legal advice or representation,
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