Skip to main content

TYPES OF PROPERTY DEEDS

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.

Comments

Post a Comment

Popular posts from this blog

Common Mistakes Of New Real Estate Investors

Many people are convinced about the soundness of real estate investment as a wealth-building vehicle but most are not clear as to the path to follow and the pitfalls to avoid. More recently, I have had reason to clarify to aspiring real estate investors that real estate investment is not a get-rich-quick system. It is a system that requires knowledge, dedication and focus. We shall examine a few mistakes to avoid if you desire to effectively utilise this wealth building vehicle. One of the basic errors new real estate investors make is to buy properties blindly on the assumption that all real estate investments automatically go up. This common assumption is not true in its entirety. For instance, if you decide to buy a property in an odd part of town without considering basic infrastructures or basic advantages, and then you go ahead and develop the property, you may experience a high vacancy ratio (this means, it takes an unduly long time to rent the property to tenants) or it m...
Post a Comment
Read more

UPDC’s REIT Floats N30 billion Offering

UPDC Real Estate Investment Trust (REIT) has completed arrangements to raise N30 billion by way of offering of 3,000,000,000 units of N10 each at par. The REIT, is sponsored by UACN Property Development Company Plc. The floating of the offer, which is to commence on February 19 20123 was preceded by a completion board meeting held in Lagos on Tuesday, where the bank and all the financial advisers to the offer signed the necessary documents. The Chairman UPDC Plc, Larry Ephraim Ettah  said the offer which closes on March 28, 2013 is payable in full on application. He explained that the REIT is a closed ended one, adding that the units of the REIT  would be traded only through a licensed stockbroker once the offer is concluded. Ettah, while fielding questions from journalists explained that the company has huge projects waiting for execution, adding that the proceeds from the offer would be channeled on the projects. According to him, the REIT will invest primarily in a ...
Post a Comment
Read more

Governor Fashola Launches Home Ownership Scheme for Lagosians

Citing his government’s desire to encourage low income Lagos residents to own homes without much stress, the Lagos State Governor, Mr. Babatunde Raji Fashola on Monday flagged off the Lagos Home Ownership Mortgage Scheme (LagosHOMS). Mr. Fashola said LagosHOMS is part of his administration's solution towards reducing the acute housing deficit in Lagos State. According to Fashola, "the economic realities had made house ownership almost impossible for most income earners". He went further to say, "for many years, our people have had to acquire houses, often times being required to pay cash once and for all, as if they were buying a shirt or a pair of shoes in a shop. This approach in part, explains why a large number of ordinary middle class and working people, cannot afford to acquire homes on the basis of their legitimate income derived from hard work. In Lagos, we are of the view that a home is not something you buy in one day, but over time in a way that your...
Post a Comment
Read more