warranty

Definition of warranty

Etymology

From Anglo-Norman warantie, variant of Old French guarantie (Modern French garantie). More at warrant, guarantee and guaranty.

Noun

warranty (plural warranties)

1. Security; warrant; guarantee.
   
   The stamp was a warranty of the public. -John Locke.
   
   
2. (obsolete, law) A covenant real, whereby the granter of an estate of freehold and his heirs were bound to warrant and defend the title, and, in case of eviction by title paramount, to yield other lands of equal value in recompense. This warranty has long since become obsolete, and its place supplied by personal covenants for title. Among these is the covenant of warranty, which runs with the land, and is in the nature of a real covenant.
3. (law) An engagement or undertaking, expressed or implied, that a certain fact regarding the subject of a contract is, or shall be, as it is expressly implied or promised to be. In sales of goods by persons in possession, there is an implied warranty of title.
4. (insurance law) A stipulation or engagement by a party insured, that certain things, relating to the subject of insurance, or affecting the risk, exist, or shall exist, or have been done, or shall be done. These warranties, when expressed, should appear in the policy; but there are certain implied warranties.

Synonyms

• guarantee
• warrant

Verb

warranty (third-person singular simple present warranties, present participle warrantying, simple past and past participle warrantied)

1. To warrant; to guarantee.

Further reading

In business and legal transactions, a warranty is an assurance by one party to the other party that specific facts or conditions are true or will happen; the other party is permitted to rely on that assurance and seek some type of remedy if it is not true or followed.

In real estate transactions, a general warranty deed is a promise that the buyer's title to a parcel of land will be defended. A limited warranty deed, on the other hand, is a promise that the title will be defended against a limited set of claims which is usually claims arising from incumberances executed by the grantor. Thus, a general warranty deed binds the grantor to defend the title against all claims even those arising from previous owners; whereas, a limited warranty deed typically only binds the grantor to defend the title against claims arising from when the grantor held title to the property. A limited warranty deed is the deed of choice for banks when selling foreclosed properties.

A warranty may be express or implied depending on what you bought.