deed conveying the seller's interest in real property to the buyer. The seller, also known as the grantor, certifies that the title on property being conveyed is free and clear of defects, liens, and encumbrances. If a third party claim is not exempted specifically, the buyer (the grantee) may sue the seller for the damages caused by the defective title.

document in which title, claim, or ownership of property or an estate is relinquished to another, without representing that such title is valid. Usually it contains no covenant or warranty against outstanding claims of previous lien holders.

agreement by the seller of goods or services to satisfy for a stated period of time deficiencies in the item's quality or performance. Warranty terms may be included on the buyer's receipt. The warranty usually provides for repair or replacement of the item in the case of malfunctioning or poor workmanship. Typically, there is no additional charge during the warranty period. The seller records warranty expense and related estimated liability in the year of sale. A warranty percentage is usually based on prior experience. Assume sales for 2000 are $100,000. Estimated warranty cost is 2% of sales. The entry to record warranty expense is:

If on 1/25/2005, actual warranty services performed cost $500, the entry is:

document in which title, claim, or ownership of property or an estate is relinquished to another, without representing that such title is valid. Usually it contains no covenant or warranty against outstanding claims of previous lien holders.

deed in the form of a contract that conveys property and transfers title to the buyer but lacks any guarantee from the seller as to the validity of the title. It is commonly used today to convey title to real estate and in effect transfers to the new owner whatever interest the grantor had.

document in which title, claim, or ownership of property or an estate is relinquished to another, without representing that such title is valid. Usually it contains no covenant or warranty against outstanding claims of previous lien holders.

deed in which the grantor agrees to protect the grantee against any other claim to title of the property and provides other promises.

a deed in which the grantor limits the title warranty given to the grantee to anyone claiming by, from, through, or under him, the grantor. The grantor does not warrant against title defects arising from conditions that existed before he owned the property.

Example: Because of bankruptcy of its owner, a property goes under trusteeship. When the property is sold to satisfy creditor claims, the trustee conveys a special warranty deed to the buyer. This provides the buyer with warranty against claims incurred only during the time the property was held by the trustee.