What is Corporate Warranty Deed?

A corporate warranty deed is a legal document used when a corporation transfers real estate ownership to another party. It assures the buyer that the title is clear and the corporation has the full legal right to sell the property. This type of deed offers the strongest protection against future title disputes.

Corporate Warranty Deed at a Glance

Used By: Corporations or legal entities

Guarantees: Clear title, full ownership, and legal protection

Common In: Commercial real estate transactions

Requires: Corporate resolution or authorized officer’s signature

Why is a Corporate Warranty Deed Important?

It gives the buyer peace of mind. Unlike a quitclaim or limited deed, this one guarantees that the property being sold has no hidden claims or ownership disputes. It also places legal responsibility on the selling corporation to address any issues that might come up in the future.

What Does It Typically Cover?

  • Full ownership (title) rights
  • No unpaid taxes or legal claims
  • Protection against future ownership disputes
  • Legally binding corporate signatures

What Is Not Covered?

  • Mistakes due to title search errors
  • Title issues unknown at the time of sale
  • Cases where the corporation dissolves or can’t be held accountable
  • Variations in protection due to state laws

FAQs

Q1: Who signs a corporate warranty deed?

Authorized officers of the corporation, usually backed by a corporate resolution.

Q2: Is this deed better than a quitclaim deed?

Yes. A quitclaim offers no guarantees, while a corporate warranty deed provides full assurance of ownership and title clarity.

Q3: Does it come with title insurance?

Not by default. Title insurance is separate but often recommended for added protection.

Q4: Can a corporate warranty deed be used for residential property?

Yes, but it's more commonly used in business or commercial real estate transactions.

Q5: What happens if a title issue arises later?

The buyer can legally pursue the corporation for compensation or resolution, depending on deed terms and local laws.