What type of Deed should you get when you Purchase a Property?

A Deed is the document that transfers ownership of Real Estate.  It contains the names of the old and new owners and a legal description of the property , and is signed by the person(s) transferring the property.

All Deeds must be notarized and witnessed by 2 uninterested parties.

Both types of Warranty Deeds (Special and General) guarantee the buyer:

• That the Seller owns the title
• That the seller is legally allowed to sell the property
• That the property has not already been sold
• That the property is free of debt or other claims(aside any mentioned in the deed)
• That the seller is responsible for any problems/faults with the property

 

GENERAL WARRANTY DEED

Most commonly used for residential real estate sales, a General Warranty Deed acts as a guarantee to the buyer that the seller has the right to sell the property, and that the property is free of debt or other liens.  The seller must defend the title against any and all other claims, and compensate the buyer for any unsettled debts or problems.

SPECIAL WARRANTY DEED

Differing from a Warranty Deed, the seller’s guarantee does not cover the property’s entire history.  Generally, the seller only guarantees against problems or claims created during the seller’s ownership of the property.  A Special Warranty Dee is often used in commercial property transactions or residential real estate sales.

• Corporate Warranty Deeds
• REO Properties
• Investors

QUIT CLAIM DEED

Most often used by family members, divorcing spouses, and people well-acquainted with each other. a Quit Claim Deed allows one party to transfer property rights and claims to another party.  Usually there is no monetary exchange.  The extent and authority of the grantor’s interest or claim to the property is unspecified, and the grantee is not provided with guarantee.

 

 

 

 

 

 

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