In the majestic state of Maryland, there are three different kinds of deeds: quitclaim, general warranty, and special warranty. Here are just a few of the basics that you need to know to tackle the real estate market like a pro.
A General Warranty Deed
Typically, with a general warranty deed, the grantor (seller) gives the property to the grantee for life. Basically, what this means is that for the time period before and including the time of the possession of the property, the seller (grantor) is responsible to the buyer (grantee), for any defects in title.
The Very Special Warranty Deed
Just referred to as a special warranty deed, this type of deed is the most commonly used throughout Maryland. With a special warranty deed, the seller grants title to the property to the buyer only while the seller had title to the property. As a result, this scenario is a much more limited version of the general warranty deed. In the end, the special warranty deed reduces the liability risk to claims and demands that occurred before the seller obtained title to the property.
A Quitclaim Deed
Rarely used in Maryland, a quitclaim deed is quite unique. With a quitclaim deed, the full title to the property isn’t actually transferred. In fact, this different scenario can occur with homes that are in foreclosure as well, when the seller (the bank) really doesn’t have any information on the actual history of the title or the property itself. When there is an issue with a title, but there are questions that cannot be answered by any of the parties that are presently associated with the actual property in dispute, a quitclaim deed may become a necessity. Necessarily, when a seller (grantor) is indicating that there may be some potential title issues or right of ownership issues, they will issue a quitclaim deed thereby relinquishing all of their rights of ownership to the property itself.
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 and sell your home. We are also well trained in identifying any and all errors in public records andhelping 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+.