Is a Warranty Deed a Substitute for a Title Examination?
No. In a warranty deed, the seller warrants the title against the claims of all other persons. If the warranty is broken, it may have to be enforced by a lawsuit. There is always the possibility that the seller may die or go bankrupt before a defect in the title is discovered. Should this happen, the buyer may not receive any benefit from the warranty or from a lawsuit. Although a warranty deed is desirable, and the buyer should insist upon this type of protection, the deed alone is not enough. The buyer should also have the title examined by an attorney.
