An Introduction to Common Kinds of Deeds for Real Property
As you buy, sell, and perhaps inherit real estate, you may encounter several different types of deeds. Perhaps you are simply curious to know why more than one kind of deed to real property exists, or maybe you are on the verge of buying or selling a property and have questions about those differences. Continue reading to receive a brief introduction to common types of deeds.
There are three main kinds of deeds. First, there is the quit claim deed. A quit claim deed offers the fewest guarantees to a buyer of real property. A quit claim deed transfers the ownership interest, fee title, or claim from the grantor to the grantee. A quit claim deed does not provide any guarantees that the chain of title is clear or free of any liens or other encumbrances. It could be that there are other claims in the land or property’s chain of title that the quit claim deed does not reveal. In other words, if the seller uses a quit claim deed, you cannot be sure, without doing further due diligence research, that the property is not encumbered by a lien or other issue in the title.
Second, there is a general warranty deed. This kind of deed provides the most guarantees to the grantee. One guarantee a general warranty deed offers is that the grantor does in fact, possess the ownership interest that is being transferred via the deed. Next, this kind of deed guarantees that the grantor has the power to transfer the property to the grantee. Additionally, the deed warrants that the property’s title is clear unless otherwise stated in the deed. The last guarantee made by this kind of deed is that neither the grantor, nor any previous owners, have created any issues in the chain of title.
Third, there is the special warranty deed. This kind of deed offers some guarantees to the grantee, but those guarantees are more limited than a general warranty deed. A special warranty deed is the grantor’s guarantee that the grantor did not create any issues in the title. This kind of deed does not guarantee that those who owned the property prior to the grantor did not create any issues in the title.
Finally, there are other kinds of deeds used to transfer property from an estate or trust such as the Personal Representative Deed and the Trustee’s Deed. These kinds of deeds are legal tools that allow the distribution of real property in an estate and are closer to quit claim deeds than the other main kinds.
Now that you know a little about common kinds of deeds, you may have questions about your own situation. A blog post can serve as a useful introduction to a legal topic, but it should never be considered legal advice. Contact an attorney at Kelly & Brand, Attorneys at Law, LLC for personalized legal advice regarding deeds and the conveyance of real property.
