A warranty deed, also known as a general warranty deed, is a legal real estate document between the seller (grantor) and the buyer (grantee). The deed protects the buyer by pledging that the seller holds a clear title to the property and that there are no encumbrances, unknown easements, outstanding liens or mortgages against it. Legal-Core-ESCROW SECURITY will perform a detailed due diligence and scrutinize all the pertinent legal documents, recordings, aerial shoots, government prints and plans as well as any bank, private or government liens or mortgages on the property.

Sometimes warranty deeds and home warranties are confused by first-time buyers new to the real estate process in Mexico. It’s an understandable mistake as both can be used to protect the property. However, a home warranty is a contract with a service provider that will cover the cost of repairs or replacements for household appliances or major systems, while a warranty deed is a legal document that is used to promise ownership rights to the buyer. In Mexico is not possible to insure a Title as this concept is not recognized by law. Some companies offer this service, but all they are securing is that you contract with them to go through a legal process to clear the title. In other words, they will be doing the same work as any other law firm, and while they are not a law based company, in consequence will then hire a law firm to do it. Therefore, Legal-Core-ESCROW SECURITY has a different approach, and secures the buyers’ purchase by warranting the Title. Should any problem arise from the purchase, Legal-Core-ESCROW SECURITY secures the buyers’ investment before any purchase takes place, making this a modern, progressive, efficient and LEGAL way of making the transacting a smooth one.

Other risks to completing a transaction can include ongoing disputes about the boundaries that define the property. The owners of the adjacent real estate might claim the property lines are different from what the seller presented to the buyer. Liens for unpaid bills and taxes could exist, further complicating the transaction. As Legal-Core-ESCROW SECURITY researches the boundaries and takes aerial shoots to cross reference the recorded information at the Municipal office, is conflict will unlikely happen.

Finally, as a binational company, we will hold your investment in Escrow in which ever country suits your needs and confort level (USA or Mexico).


What Is Warranty of Title?

A warranty of title is a guarantee by a seller to a buyer that the seller has the right to transfer ownership and no one else has rights to the property. In addition, a warranty of title may be used to guarantee that no other party has copyright, patent or trademark rights in the property being transferred.

Understanding Warranty of Title
A formal warranty of title is included in a warranty deed , which is used to transfer property in a sale legally. This document guarantees that the seller has the legal right to transfer the property and that no other entity, such as the Internal Revenue Service or an ex-spouse, has a lien against or claim to the property. A warranty deed’s warranty of title protects the buyer’s interests and gives the buyer legal recourse if any entity later tries to make a claim to the property.

Other types of deeds such as a QUITCLAIM DEED do not provide a warranty of title. There is no guarantee of a clear title , but the grantor effectively signs away their interest in the property. If a question of ownership arises later, the buyer would not have the protections that a warranty of title would grant.

How a Warranty of Title Is Used to Confirm a Transaction
A warranty of title is automatic in most sales, but if the seller is acting as a representative, no warranty of title may exist. This situation might arise in an auction, a sheriff’s sale, or an estate sale. In these cases, the person selling the property is not its owner and therefore may not be aware of any other entity’s rights in that property, something that happens frequently by real estate agents.

Warranty of title can give the buyer of a property legal recourse to sue the seller if there is a claim or issue attached to the property. For example, an heir of a prior owner may have an unresolved claim to the property that was not made known by the seller. The buyer could pursue litigation to recoup the money they put toward the purchase along with damages. However, in order to prevent such situation from happening, Legal-Core-ESCROW SECURITY will conduct the proper legal due diligence and guarantee the Deed.


An escrow account is an account designed to safely hold funds temporarily. The escrow provider should be a disinterested third party with no preference about who ultimately receives funds from the account. For example, in a real estate transaction, the escrow account does not belong to the buyer or seller. Escrow accounts are useful in several ways:

  • Buying goods and services: Escrow is an option for almost any transaction where buyers and sellers want a ‘referee’ to oversee payment.
  • Home-buying: An earnest money deposit should stay in an escrow account to protect both the buyer and seller.
  • Monthly payments: A homeowner might make deposits into an escrow account with each monthly payment, helping to smooth out large annual expenses.
  • Renters and landlords: Escrow accounts can help protect the interests of renters and settle disputes.

We’ll cover each of these in more detail, but the common theme is using an account to hold money for safekeeping.

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