Types of Deeds in Real Estate

What are the Different Types of Deeds?

In real estate, different types of deeds are used to transfer ownership of property from one party to another. Each type of deed provides a different level of protection and warranty regarding the title. Deed types include general warranty deeds, which offer the highest buyer protection with full warranties, and special warranty deeds, which protect only during the seller's ownership period. Quitclaim deeds transfer any interest without warranties, often used among family members, while grant deeds ensure no prior sale or undisclosed encumbrances. Bargain and sale deeds imply ownership without warranties, common in tax or foreclosure sales, and special purpose deeds like trustee's, executor's, and tax deeds are used in specific legal contexts.

Here's a more detailed breakdown of the most common types of deeds:

General Warranty Deed

1. Provides the highest level of protection to the buyer.
2. Guarantees that the seller holds clear title to the property and has the right to sell it.
3. Includes warranties that cover the entire history of the property, not just the period during which the seller owned it.
4. The seller promises to defend the buyer against any future claims to the title.

Special Warranty Deed

1. Provides a moderate level of protection.
2. Guarantees that the seller holds clear title to the property and has the right to sell it.
3. Warranties cover only the period during which the seller owned the property, not any prior period.
4. The seller promises to defend the buyer against claims arising only during the seller's period of ownership.

Quitclaim Deed

1. Provides the least amount of protection to the buyer.
2. Transfers only the interest that the seller has in the property, if any.
3. Does not include any warranties or guarantees about the title.
4. Commonly used to clear up title issues, transfer property between family members, or in divorce settlements.

Grant Deed

1. Guarantees that the property has not been sold to anyone else.
2. Asserts that the property is free from any encumbrances, except those disclosed.
3. Does not provide the same level of warranty as a general warranty deed but offers more protection than a quitclaim deed.

Bargain and Sale Deed

1. Implies that the seller has the right to transfer the title but provides no warranties about the title.
2. Often used in tax or foreclosure sales.
3. The buyer receives no guarantees about the title’s history or any encumbrances.

Special Purpose Deeds

1. Trustee’s Deed: Used when a property is sold by a trustee, such as in a foreclosure or when property is held in a trust.
2. Executor’s Deed: Used to transfer property from the estate of a deceased person by the executor of the estate.
3. Tax Deed: Used when property is sold by the government due to unpaid taxes.

Each deed type serves different purposes and provides varying levels of security and warranty. Buyers and sellers should carefully consider the type of deed involved in a transaction and, if necessary, seek legal advice to ensure their interests are protected.