A North Carolina general warranty deed is a legal instrument that transfers property rights from a grantor (old owner) to a grantee (new owner) and warrants the validity and quality of the property title. General warranty deeds contain a promise that neither the grantor nor any previous owner has caused or suffered any title encumbrances. The document further warrants that the grantor has “lawfully seized” the property, meaning they are the rightful owner and have the full power and authority to convey ownership.
A variety of scenarios could result in a defective title, such as a lien filed against the property by an unpaid contractor or a boundary line dispute initiated by a neighboring owner. The warranty would protect the grantee from financial liability, provided the defect originated before they acquired title rights.