Warranty Deed Template: Subject to Debt and Transfer Terms

WARRANTY DEED (SUBJECT TO DEBT) FAQ

What is a Warranty Deed (Subject to Debt)?

A Warranty Deed (Subject to Debt) is a legal document that transfers ownership of real estate from a seller (Grantor) to a buyer (Grantee), while recognizing that the property remains encumbered by an existing loan, mortgage, or lien.

Why is a Warranty Deed (Subject to Debt) important?

It protects the buyer by guaranteeing that the Grantor has legal title to convey, while also acknowledging the property’s outstanding obligations. This ensures transparency in the transfer and helps avoid disputes about undisclosed debts.

When should you use a Warranty Deed (Subject to Debt)?

It should be used when transferring real estate that is still under mortgage or another secured loan, where the buyer agrees to assume responsibility for the debt instead of requiring the seller to pay it off before closing.

What should a Warranty Deed (Subject to Debt) include?

It should identify the Grantor and Grantee, describe the property, disclose existing debts, state the consideration paid, include warranties of title (limited by the debt), and be signed, notarized, and recorded with the county clerk or recorder.

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