An Introduction to Common Deeds to Real Property
As you buy, sell, convey, and perhaps inherit real property you may have encountered that there are several types of deeds for the transfer of real property. Maybe you’re simply curious to know why more than one kind of deed exists, or maybe you’re on the verge of buying or selling a real property and have questions about the deed you’re using. Continue reading to receive a brief introduction to the three most common types of deeds.
(1) Quit Claim Deed. A Quit Claim Deed offers the fewest guarantees to a buyer of real property. A quit claim deed transfers the title, or claim, from the grantor to the grantee, without any guarantees that the chain of title is clear and free of any liens or encumbrances. It could be that there are other claims in the land’s chain of title that the quit claim deed does not reveal. For example, let’s say that you want to buy a piece of land from a person selling that land. If the seller uses a quit claim deed, you cannot be sure that the piece of land does not come with a lien or other issue in the title.
(2) General Warranty Deed. A General Warranty Deed provides the most guarantees to the grantee. One guarantee a general warranty deed offers is that the grantor does have the interest that the deed claims the grantor has. 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 stated in the deed. The last guarantee made by this kind of deed is that neither the grantor, nor any previous owners, have created issues in the chain of title.
(3) Special Warranty Deed. A Special Warranty Deed does offer 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 themselves did not create any liens or encumbrances or other title issues. Special Warranty Deeds do not guarantee that those who owned the property before the grantor did not create any title issues.
Finally, there are other types of deeds that are used in the estate planning context to transfer property from an estate or trust to beneficiaries or third parties.
Now that you know a little more 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 today for personalized legal advice regarding the conveyance of real property.