Types of Deeds
A deed is a legal instrument that conveys the title of real property between parties. There are several types of deeds that can allow you to do so. In this article, we will go over three types of deeds and the purpose they serve.
General Warranty Deed
A general warranty deed will provide the grantee with the highest level of protection. With this type of deed, the grantor provides several guarantees, or warranties, about the property in question. There are two main warranties made. The first is a warranty of title. With this, the grantor guarantees that they both own and have a legal right to transfer the property. In the future, if there is an issue with the title the grantee will be able to sue the grantor the damages.
The second is a warranty against encumbrances. With this, the grantor guarantees that there are no encumbrances on the property or lists and fully discloses any if there are. Encumbrances can include mortgages, mechanics liens, easements, etc. If later the grantee discovers there was an undisclosed lien on the property, the grantor will be held responsible for paying to have the encumbrance removed.
Special Warranty Deed
A special warranty deed provides some grantee protection, but less than a general warranty deed. With a special warranty deed, the grantor guarantees that they hold title on the property, and they have the right to transfer it. They also guarantee that there are no encumbrances on the property from their period of ownership. However, a special warranty does not protect the grantee from a title and/or encumbrance issues that may have originated before the current grantor held the title. This type of deed is common in residential and commercial property transfers.
Quitclaim deeds offer the least amount of protection for the grantee. A quitclaim deed allows a grantor to transfer any right they may or may not have to the grantee. It does not guarantee that the grantor has any actual interest in the property. It also does not provide the grantee with any guarantees against any encumbrances on the property. This means that if the grantor turns out not to own property or there are encumbrances on the property the grantee cannot take any legal action against the grantor.
Deeding Your Property
If you are looking into types of deeds to change the title on your property, be sure to first consult with a professional. Deeds need to be prepared properly so as to prevent any future issues with transfers.
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