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Define General Warranty Deed in Real Estate

General Warranty Deed: 

A general warranty deed is a special paper used when someone sells a property. It not only says that the person selling the property has the right to sell it, but also promises that the seller will help the buyer if anyone else says they own the property. This deed makes the seller responsible for any issues with the title. However, if the buyer gets title insurance, a general warranty deed isn't needed, because the insurance covers those issues.

Example: 

For example, Sarah sells her house to Tom using a general warranty deed. After Tom moves in, another person, David, claims he has a right to the house. Because Sarah used a general warranty deed when she sold the house, she must help Tom defend his ownership against David's claim. If Tom had bought title insurance, he wouldn't need the general warranty deed, since the insurance would help protect him against claims like David's.

"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"

In a town called Warranty Place,
A house was sold, with deed's embrace.
Sarah sold her house to Tom,
A general warranty deed, a safety charm.

But wait, there's more, it's good to know,
Title insurance could steal the show.
If Tom had bought this policy,
The deed's protection, it wouldn't be.

When David claimed the house was his,
Sarah helped, because of the biz.
With general warranty deed in hand,
She defended Tom's right to the land.

But title insurance, if it were there,
Would take the lead, and handle with care.
The deed, in that case, would take a rest,
Title insurance, the protective best.