Oregon Warranty Deed Form

What is an Oregon Warranty Deed Form?

An Oregon general warranty deed form conveys real estate from the current owner—the grantor—to a new owner—the grantee—with complete warranty of title.¹ Warranty of title is the current owner’s guaranty that the property’s title is free of defects—protecting the new owner against any undisclosed title defects existing as of the date of the deed.² Title defects could potentially include liens, an unclear chain of title, or an adverse claim against the property.

Under Oregon law, a general warranty deed’s warranty of title consists of three related covenants of title.

1. When delivering the deed, the current owner has good title to all property interests described in the deed and the power to transfer those interests.
2. The real estate is free of any liens, title defects, or other adverse claims not disclosed in the deed.
3. The current owner will defend the transferred title against anyone who asserts a claim on the property’s title.³

The three covenants of title extend to the real estate’s entire chain of title and are implied whenever a property owner executes an Oregon general warranty deed.⁴ The parties to a deed can modify or limit covenants of title using unambiguous language built directly into the deed.⁵ Any excluded title defects—such as an existing mortgage or tax lien—must be expressly identified within the deed.⁶

Other Names for an Oregon General Warranty Deed Form

Oregon’s general warranty deed statute uses the shorter descriptor warranty deed.⁷ Oregon courts also use warranty deed but occasionally refer to general warranty deeds to differentiate deeds with complete warranty of title from special warranty deeds—which provide a less comprehensive warranty.⁸

Oregon general warranty deeds are occasionally called statutory warranty deeds when a deed’s language is derived from Oregon’s warranty deed form.⁹ The Oregon legislature adopted the model deed form to simplify the creation of Oregon warranty deeds and codify Oregon case law on the topic.¹⁰

The term statutory warranty deed is imprecise because Oregon has statutory forms for four different types of deed—general warranty deeds, special warranty deeds, bargain and sale deeds, and quitclaim deeds. The terms warranty deed and general warranty deed are therefore more precise. Further, Oregon’s statutory deed forms are optional, and the model language is not essential to a valid Oregon warranty deed.¹¹

How do Oregon General Warranty Deed Forms Relate to Other Forms of Deeds?

Oregon general warranty deeds have two defining features relative to Oregon’s three other statutory deed forms.

1. Oregon general warranty deeds provide complete warranty of title that extends to the real estate’s entire history; and,
2. Oregon general warranty deeds transfer the current owner’s entire interest in the real estate (unless expressly limited) and any after-acquired title.¹²

When executing an Oregon general warranty deed, the real estate owner “conveys and warrants” the property to the new owner.¹³

The effect of a warranty deed’s warranty of title is that the current owner shoulders the risk of any undisclosed title defects. Oregon courts treat the current owner’s covenant to defend the real estate’s title as an agreement to indemnify the new owner against any losses incurred by the new owner—including attorney’s fees—resulting from a valid third-party claim.¹⁴ Due to the financial risk, a person transferring real estate with a warranty deed sometimes purchases title insurance to shift the risk to an insurance company in exchange for payment of a premium.¹⁵

Oregon General Warranty Deed Form vs. Oregon Special Warranty Deed Form

An Oregon special warranty deed form provides nearly the same warranty of title as a general warranty deed—with the same three covenants of title.¹⁶ However, a special warranty deed’s warranty is limited to the time while the current owner held title to the property.¹⁷ The current owner guarantees that the property’s title is free of defects and agrees to defend the title against adverse claims—but only claims that arose during the current owner’s period of ownership. The warranty excludes any defects or claims from earlier in the property’s chain of title.

When executing an Oregon special warranty deed, the current owner “conveys and specially warrants” the property to the new owner.¹⁸ Special warranty deeds split the risk of title defects between the current and new owners, and either party therefore potentially benefits from a title insurance policy covering the property’s title.

Oregon General Warranty Deed Form vs. Oregon Quitclaim Deed and Oregon Bargain and Sale Deed Forms

Oregon has two statutory deed forms that transfer real estate with no warranty of title: quitclaim deeds and bargain and sale deeds.¹⁹ In either case, the current owner makes no promises regarding the property’s title, and the new owner bears all the risk of title defects.²⁰

When executing an Oregon quitclaim deed form, the current owner “releases and quitclaims” the property to the new owner.²¹ A quitclaim deed transfers whatever interest—if any—the current owner holds at the date of the deed but does not transfer any after-acquired interest.²²

When executing an Oregon bargain and sale deed form, the current owner “conveys” the property to the new owner.²³ The practical difference between Oregon bargain and sale deeds and Oregon quitclaim deeds is that bargain and sale deeds “pass any and all after acquired title.”²⁴ Quitclaim deeds only transfer the current owner’s interest held when executing the deed, so a quitclaim deed does not transfer interests that vest after a deed is signed.²⁵

Oregon Warranty Deed Form vs. Other Types of Oregon Deeds

Oregon law recognizes a few additional types of deeds named for the deed’s specialized purpose—not based on warranty of title. For example, a trustee’s deed to purchaser transfers title to a purchaser following foreclosure of real estate secured by a deed of trust.²⁶

Other than general warranty and special warranty deeds, an Oregon deed does not provide warranty of title unless a covenant of warranty is expressly included within the deed.²⁷ Oregon transfer on death deeds—which are popular in estate planning—provide no warranty even if the deed says otherwise.²⁸ Transfer on death deeds let a property owner transfer real estate to a beneficiary effective upon the owner’s death without affecting the owner’s rights in the property during life.²⁹

Common Uses of Oregon General Warranty Deed Forms

The parties to arms-length sales of Oregon real estate typically use general warranty deeds—particularly when the real estate is residential and a third-party lender finances the purchase. Homebuyers and mortgage companies cannot risk purchasing or funding the purchase of real estate with unclear title.

The warranty of title provided by a general warranty deed allows a homebuyer legal recourse if the property’s title proves defective. If a valid claim against the real estate arises, the buyer can sue the seller for breach of warranty.

Title insurance—which protects against financial loss arising from unknown liens, defective titles, or adverse claims against insured real estate—transfers a seller’s risk burden to the insurance company.³⁰ Mortgage lenders often require title insurance as a condition of financing. A title insurer will also require a thorough title examination before issuing a policy—further reducing the risk of a future problem with a property’s title.

Oregon general warranty deeds are much less common when a real estate transfer involves little or no exchange of consideration. A relative who receives real estate through gift or inheritance, for example, is unlikely to insist on a warranty.

How to Create an Oregon General Warranty Deed

The Oregon State Legislature provides statutory model language for general warranty deeds within O.R.S. § 93.850(1). Though optional, the form language helps condense and promote predictable interpretation of Oregon deeds.³¹

An Oregon deed with the following model language is considered a general warranty deed—even if covenants of title are not expressly included within the deed.³²

[Current Owner’s Name], Grantor, conveys and warrants to [New Owner’s Name], Grantee, the following described real property free of encumbrances except as specifically set forth herein: (Describe the property conveyed.)

[any exceptions to statutory warranties]

[add statutory disclosure]

The true consideration for this conveyance is $___

[date]

The text of an Oregon warranty deed must expressly identify any existing liens or other title defects excluded from the deed’s warranty.³³ The parties to an Oregon general warranty deed can also agree to limit or modify the scope of a deed’s warranty through clear language in the deed.³⁴ If a deed’s phrasing is unclear or ambiguous, Oregon courts interpret the deed in favor of the new owner.³⁵

Oregon’s general warranty deed form also leaves room for a statutory disclosure and statement of consideration—both of which Oregon law requires.³⁶

The form language provides a solid foundation but is not alone sufficient to create a recordable deed that validly transfers Oregon real estate. Oregon’s legislature has adopted several additional requirements for Oregon deeds not incorporated within the model language.³⁷ A deed not tailored to Oregon law or that omits legal requirements can result in a failed conveyance or a transfer under terms different than what was contemplated by the parties.

1. O.R.S. § 93.850.
2. See Leach v. Gunnarson, 619 P2d 263 (Or. Ct. App., 1980).
3. O.R.S. § 93.850(2)(c)(A – C).
4. O.R.S. § 93.850(2).
5. State ex. rel. Dept. of Trans. v. Tolke, 586 P.2d 791 (Or. Ct. App. 1978).
6. O.R.S. § 93.850(3).
7. O.R.S. § 93.850.
8. State ex. rel. Dept. of Trans. v. Tolke, 586 P.2d 791 (Or. Ct. App. 1978); O.R.S. § 93.855.
9. See, e.g., Chaney v. Haeder, 752 P.2d 854 (Or. Ct. App., 1988).
10. Chaney v. Haeder, 752 P.2d 854 (Or. Ct. App., 1988).
11. O.R.S. § 93.870.
12. O.R.S. § 93.850(2).
13. O.R.S. § 93.850(1).
14. Falk v. Amsberry, 633 P2d 799 (Or. Ct. App., 1981).
15. See O.R.S. § 731.190.
16. O.R.S. § 93.855(2).
17. O.R.S. § 93.855(2).
18. O.R.S. § 93.855(1).
19. O.R.S. § 93.865; O.R.S. § 93.860.
20. See O.R.S. § 93.865; O.R.S. § 93.860(3).
21. O.R.S. § 93.865(1).
22. O.R.S. § 93.865(2).
23. O.R.S. § 93.860(1).
24. O.R.S. § 93.860(2)(b).
25. O.R.S. § 93.865(2).
26. O.R.S. § 86.800.
27. O.R.S. § 93.140.
28. O.R.S. § 93.969(4).
29. O.R.S. § 93.967(1) and (5).
30. O.R.S. § 731.190.
31. O.R.S. § 93.870; Chaney v. Haeder, 752 P.2d 854 (Or. Ct. App., 1988).
32. O.R.S. § 93.850(3).
33. O.R.S. § 93.850(3).
34. State ex. rel. Dept. of Trans. v. Tolke, 586 P.2d 791 (Or. Ct. App. 1978).
35. Hurd v. Byrnes, 506 P.2d 686 (Or. Sup. Ct., 1973).
36. See O.R.S. §  93.040 (requiring statutory disclosure within body of deed transferring title to Oregon real estate); O.R.S. § 93.030(2) (the “true and actual consideration paid for the transfer” must be included on an Oregon deed’s first page).
37. See, e.g., O.R.S. § 205.232; O.R.S. § 205.234; O.R.S. § 93.010.