There are many documents discussed during the closing process. One of those documents is the deed.
A real estate deed is a document designed to transfer a property from one person, known as the Grantor, to another person, known as the Grantee.
Regardless of the type of deed, it must contain basic information to be considered valid, including a legal description of the property being transferred, the identity of the person selling the property, and the identity of the person buying the property.
Still, there are various types of deeds that you may see, and each one grants the new owner certain promises from the previous owner.
What Types of Deeds Are There?
There are several different types of deeds that can be used during the sale of a property, including the following:
WARRANTY DEED
A warranty deed is a transfer of title where the seller pledges to the buyer that the property is owned free and clear of all liens.
This deed is the most commonly used deed with the issuance of title insurance.
SPECIAL WARRANTY DEED
A special warranty deed is a deed to real estate where the seller of the property warrants only against anything that occurred during their physical ownership.
In other words, the seller does not guarantee against any defects in clear title that existed before they took possession of the property.
QUITCLAIM DEED
A quitclaim deed is used to transfer an interest in real property from the Grantor to the Grantee if the Grantor has any interest in the property.
The Grantor does not, however, give any guaranties or “warranties” about the title and may not even own any interest in the property. The name comes from the fact that the Grantor “Quits” any “Claim” to the property.
This deed is often used to clear up defects in title and for transfers between family members or spouses.
Remember, we are always available to answer questions about your client's file and have attorneys on staff to assist you in choosing the right deed for your client.
We've created a digital document with the deed descriptions to help your client better understand these terms during the closing process.
