The vast majority of real estate transactions use four major types of Deeds to convey title. The difference in the types of deeds is primarily the covenants and warranties conveyed by the Grantor to the Grantee. They vary from few-to-none to significant warranties conveyed in a general warranty deed.
Deeds can be very short in length, under a page, or they can be several pages long with many restrictions, covenants, and special granting clauses. In a residential transaction the deed is normally prepared by an attorney.
Real estate is bought and sold everyday, so it should come as no surprise that there are many different types of deeds used to facilitate these transactions. Listed below are the four most common types of deeds.
- WARRANTY DEED – This is one of the most common real estate deeds. In a warranty deed, the seller (the grantor) pledges that he/she possesses the absolute right to sell off the property in question. This deed is also known as full covenant, which means that the seller is giving specific warranties related to the title of the property, the ownership, and so on. This deed gives the highest level of protection to the buyer, while the grantor is usually legally bound by the warranties. The warranties here can be simply implied by some statutory words or they may be expressly written into the deed.
- GRANT DEED- The grant deed is more or less like the warranty deed with the exception of lesser guarantees in certain cases. In a number of states in America, the grant deed is the most commonly used real estate deed.
- SPECIAL WARRANTY DEED – The special warranty deed is a bit of a misnomer. Although it is similar to the general warranty deed, it does not offer a lot of protection to the buyer. In this kind of deed, the grantor provides very few warranties; in fact, only two warranties are covered by the grantor to the grantee. The first warranty is that the grantor warrants for the fact that he/she has received the title. The second warranty is that the property in question was not encumbered during the time period when the grantor owned the property, unless this has been specially noted in the deed.
- THE QUITCLAIM DEED – Out of the four most common real estate deeds, the quitclaim provides the least amount of protection to the buyer. The uses of the quitclaim deed are extremely limited, especially in relation to its popularity. This kind of deed does not provide any covenants or warranties to the grantee. The grantor quits his/her rights over the concerned property, thus making the quitclaim deed rather insecure. The Grantor usually does not provide any kind of warranty, but simply gives up his/her rights, even if he/she did not have any to begin with. In addition, the grantor does not provide any guarantee about the accuracy of the title. It is very risky to use this kind of real estate deed.
The Law Office of Renee E. Stein can assist you with the drafting and filing these deeds and many other estate planning documents. Renee E. E. Stein practices in the areas of real estate and land use law, specializing in land use agreements, sale contracts, leasing, development and management transactions.
The Law Office of Renee E. Stein can assist you with the drafting and recording of these deeds and many other estate planning documents. Renee E. Stein practices in all areas of real estate and land use law, specializing in land use agreements, sale contracts, leasing, development and management transactions.