If you’re buying or selling a property, you’ll need a property deed to transfer the property’s title from one party to the other. There are a number of different types of property deeds, but if you’re participating in a traditional real estate transaction without any special circumstances, you’re probably going to stick to one of a few deeds. These include the general warranty deed, special warranty deed, and quitclaim deed. Learn more about these deeds in this week’s blog.
General Warranty Deed
This deed offers the most protection to the grantee (the person receiving the title). The person who is giving away the title (the grantor) makes a number of legally binging promises to the grantee in a general warranty deed. The end result is protection for the grantee against any person who claims to have an interest in the property. The grantor states that they own the property and are legally able to give away the title. The grantor promises that there are no liens or any other encumbrances on the property (unless these are stipulated to in the deed). The grantor promises that he will provide the grantee with any document needed to make the title good. Most buyers prefer to receive a general warranty deed.
Special Warranty Deed
The special warranty deed offers slightly less protection for the grantee than a general warranty deed. In a special warranty deed, the grantor states that they did nothing during their ownership of the property to create a defect on the title. The grantor guarantees against defects that occurred during their ownership of the property, but not against those that may have arisen under another owner.
Quitclaim deeds offer no protection for the grantee on the title. The grantor does not make any promises as to the condition the title. As we mentioned in a recent blog, quitclaim deeds are most commonly used for property transactions between family, where there is already a high degree of trust between the two parties. A quitclaim deed might also be used if the grantor doesn’t know the status of the title.
Keep an eye on our blog to learn more about home titles and property deeds. And don’t forget that title insurance could be the difference that saves you your home. To learn more about title insurance, contact Colony Title Associates today at 410-884-1160, or visit ColonyTitle.com today!