Delaware Warranty Deed

Introduction

Key Things to Know

1. 1

   A warranty deed gives the buyer the strongest title protection. Delaware's statutory grant and convey words give only a special warranty for the grantor's own acts (25 Delaware Code Section 121(b)), so full protection against all persons is drafted in.

2. 2

   Delaware's statutory short-form deed uses the operative words grant and convey, and 25 Delaware Code Section 121(b) says those words, unless specifically restricted, operate as a special warranty against the grantor and all persons claiming under the grantor. That is a limited warranty covering only the grantor's own acts.

3. 3

   Delaware codifies no general-warranty warrant-and-defend form. To get a full general warranty, which also covers title defects that predate the seller, the deed must add an express covenant to warrant and defend title against all persons; that language is drafted in, not supplied by statute.

4. 4

   You record the signed, acknowledged deed in the recorder's office for the county (the Recorder of Deeds) where the property is located (25 Delaware Code Section 151). A deed has priority from the time it is recorded, so recording promptly protects you against a competing deed (Section 153).

5. 5

   Before recording, the grantor's signature must be acknowledged, for example before a notary public, a judge, two justices of the peace for the county, or the Mayor of Wilmington (25 Delaware Code Section 122). Delaware does not require subscribing witnesses for a deed.

6. 6

   Delaware charges a Realty Transfer Tax of 3 percent of the property's value, dropping to 2 1/2 percent where a county or municipality has imposed its own transfer tax, for a combined maximum of 4 percent (30 Delaware Code Section 5402). The deed must state the true, full and complete value of the property (Section 5409); first-time home buyers get a reduction on the buyer's share.

7. 7

   Match the deed to the protection intended: a general warranty deed (express covenant) warrants against all claims, the statutory grant-and-convey deed gives a special warranty for the grantor's own acts, and a quitclaim gives no warranty. The reason for the transfer usually points to the right one.

Delaware Requirements for Warranty Deed

• Title Guarantee and Special Warranty

  A warranty deed guarantees clear title and defends the buyer against claims. Delaware's statutory short-form deed uses the operative words grant and convey, which under 25 Delaware Code Section 121(b) operate as a special warranty against the grantor and all persons claiming under the grantor. That warranty is limited to the grantor's own acts. A full general warranty, covering defects predating the grantor, must be added by an express covenant.

• Statutory Short-Form Deed and Operative Words

  Delaware codifies a statutory short-form deed in which the operative words are grant and convey (25 Delaware Code Section 121(a)), and those words trigger the Section 121(b) special warranty. A deed not made in the statutory form remains valid. Delaware does not use a separate grant deed, and it does not codify a general-warranty warrant-and-defend form.

• Record with the Recorder of Deeds

  Record the signed, acknowledged deed in the recorder's office for the county (the Recorder of Deeds) in which the real property is situated (25 Delaware Code Section 151). A deed has priority from the time it is recorded, without respect to when it was signed and delivered (Section 153), so record promptly to protect your interest against a competing deed.

• Acknowledgment, No Witnesses Required

  Before recording, the grantor's signature must be acknowledged, for example before a notary public, any judge of this State, two justices of the peace for the county, or the Mayor of the City of Wilmington (25 Delaware Code Section 122). Delaware does not require subscribing witnesses for a deed, so a proper acknowledgment is the recording path even though the statutory form includes a witness line.

• Realty Transfer Tax and Value Statement

  Delaware imposes a Realty Transfer Tax of 3 percent of the property's value, dropping to 2 1/2 percent where a county or municipality has enacted its own transfer tax, for a combined maximum of 4 percent (30 Delaware Code Section 5402). The deed must set forth the true, full and complete value of the property, or be accompanied by an affidavit of value (Section 5409). First-time home buyers get a reduction on the buyer's portion.

• Legal Description and Parties

  Identify the grantor (party of the first part) and grantee (party of the second part), state the consideration, and include the full legal description of the property (not just the street address or parcel number), plus a recital of the prior deed. Errors in the legal description or in how the grantee takes title are a common and costly source of later title problems, so confirm both against the current deed.

• General Warranty Requires an Express Covenant

  Because Delaware supplies only a special warranty by statute, a full general warranty must be created by adding an express covenant that the grantor will warrant and defend the property against the lawful claims of all persons. This is drafted into the deed; it is not implied by the words grant and convey. Decide before signing whether the transaction calls for a general or a special warranty.

• General vs Special vs Quitclaim: Choosing the Instrument

  Choose the deed to match the protection intended. A general warranty deed (express covenant) warrants title against all claims, including those predating the grantor. The statutory grant-and-convey deed gives a special warranty for the grantor's own acts under 25 Delaware Code Section 121(b) and is the Delaware default. A quitclaim or release deed gives no covenants. The reason for the transfer usually points to the right one.