Deeds are legal documents that
transfer the ownership of an asset (such as property) from one person to
another; however, there are different types of property deeds for slightly
different purposes. These are the most common types of property deeds:
Warranty
Deed
Often used for residential real estate
sales, a 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 Deed is often used in commercial property transactions or
residential real estate sales.
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 a guarantee.
Bargain
and Sale Deed
Typically used in residential real
estate sales or sales of court-seized properties, the Bargain and Sale Deed
transfers ownership of a property from the seller to the buyer. It generally
does not guarantee to the buyer that the seller owns the property free and
clear. A Bargain and Sale Deed resembles a Quit Claim Deed, but the property is
sold rather than relinquished.
Grant
Deed
A Grant Deed transfers interest in a
property from the seller to the buyer in exchange for an agreed-upon price.
While the Grant Deed guarantees that the seller owns the property and is
legally able to sell it free of debt, it does not provide a guarantee against
defects of title (unlike the Special and General Warranty Deed). This type of
deed is commonly used for residential real estate sales.
If you need more help deciding which
type of property deed to use, it's a good idea to find a real estate lawyer who
can help.
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