The Most Common Deeds, Defined


Understanding the different types of deeds can be cumbersome for any new home buyer!

There are different types of deeds within the real estate industry. In fact, it can be quite overwhelming for first-time homebuyers who are new to real estate and home buying to understand the different types of deeds available and which one is best for them. Here, we break down what exactly a deed is and the most commonly found deeds to help you determine the best one for your particular home.

What Exactly Is A Deed?

Simply put- a deed is an instrument that conveys real estate title from one homeowner to another. For the majority of homeowners, deeds are associated with the purchasing and subsequent ownership of a home. However, some deeds come in different forms which can confuse the new owner looking to determine the type of deed they need to purchase their dream home.

A Warranty Deed

A warranty deed typically conveys real property with one or more covenants. Confused about what a covenant is? In its simplest form, a covenant is just a promise from the seller of real estate to the purchaser. That being said, there are four different types of covenants that can occur in a warranty deed. These include:

  • Seller as complete and absolute owner of the property
  • Seller having the right and power to convey the property
  • No encumbrances on the property which could diminish the value of the property being conveyed
  • The purchaser shall enjoy possession of the property peacefully, without any claims of a person having better title or claim to the property in question

As a result, having a warranty deed with all four covenants allows the homeowner to fully and entirely own the property and avoid any additional legal fees that occur when there is an issue with a property’s title or deed.

Deed Of Trust

A deed of trust is issued when there is a mortgage on a property. The deed of trust just secures the nature of the debt that establishes the payments to be made and their frequency.

A Title Company You Can Trust: Colony Title

At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.

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