When you own a home, the only legal document that definitively proves your ownership in the property is a deed. In fact, many deeds come in the form of a legal document. However, not all deeds are created equal. There are some major differences among deeds that every homeowner needs to understand. Here are the most common deeds every homeowner will find and what they mean.
A Quitclaim Deed
When you have a quitclaim deed, you have a document that transfers ownership of a property from the seller to the buyer in absolute terms. In fact, a quitclaim deed is often seen as the easiest and simplest deed in terms of transferring ownership of a property. In a quitclaim deed, the seller is devoid of any interests they had in the property. More often than not, a quitclaim deed is the optimal choice for sellers who are looking to get rid of a property and their interests to it.
A General Warranty Deed
With a general warranty deed, the interests of the buyer are always protected. In fact, buyers typically prefer to have a general warranty deed when purchasing a property. In this case, the seller makes certain promises to the buyer in writing. By doing so, the seller is held accountable for following through on their promises before ownership can be fully transferred to the buyer. For instance, a seller may promise to be responsible for any problems that arise after the final sale of the property. This guarantees that the buyer is off the hook for any issues that may come up. However, sellers are often loathed to agree to such constraining terms.
A Special Warranty Deed
The Goldilocks of deeds, special warranty deeds are a happy compromise that benefits both the buyer as well as the seller. In fact, this is the most common deed seen in most real estate transactions. However, any legal document needs to be tailored to the specific property in question. Therefore, it is important to always seek professional assistance when it comes to deeds and title insurance.
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+.