Title Insurance Vs. Warranty Deed

by Tom Gresham ; Updated July 27, 2017

Title insurance and a warranty deed are both legal documents that are used in real estate transactions. Each is related to issues of ownership of properties, particularly the legal claim on ownership of a property.

Title Insurance

Title insurance policies offer protection for either a lender or a property owner. Title insurance insures against a financial loss that might result because of a disagreement over the ownership of a property.

Warranty Deed

A warranty deed is often used in a property transaction as a way for the seller to affirm that he is the owner of the property. The deed demonstrates that the seller will stand behind that claim and defend the validity of a property's title against any other claims.

Significance

Both title insurance and warranty deeds help to solidify real estate transactions, offering some protection to participants that a legal exchange of ownership is occurring and that the participants have the right to make the deal. Title insurance offers some financial protection, while a warranty deed is about legal protection.

About the Author

Tom Gresham is a freelance writer and public relations specialist who has been writing professionally since 1999. His articles have appeared in "The Washington Post," "Virginia Magazine," "Vermont Magazine," "Adirondack Life" and the "Southern Arts Journal," among other publications. He graduated from the University of Virginia.