LOCAL PEOPLE. LOCALLY COMMITTED.

Exploring Different Types of Property Deeds: What You Need to Know

In real estate transactions, property deeds are essential legal documents that transfer ownership from one party to another. There are several types of property deeds, each offering different levels of protection and assurances. Understanding them is crucial for buyers and sellers. Continue reading to learn more!

The Different Types of Deeds

Warranty Deed

A warranty deed provides the highest level of protection to the buyer. It affirms that the seller holds a clear title to the property and has the right to sell it. Additionally, it assures that the property is free from any liens or encumbrances, covering the entire history of the property. This type of deed includes a pledge from the seller to defend the buyer against any future claims.

Special Warranty Deed

A special warranty deed also offers some level of protection but is limited to the period during which the seller owned the property. It guarantees that the seller has not incurred any title defects during their ownership but does not make assurances about any previous issues. This deed is commonly used in commercial transactions.

Quitclaim Deed

A quitclaim deed transfers whatever interest the grantor has in the property without any warranties or guarantees. It provides no assurance about the title's validity or whether the grantor has the right to convey it. This type of deed is commonly for transferring properties between family members or to clear up title issues.

Bargain and Sale Deed

A bargain and sale deed implies that the seller has the right to convey the property but does not offer any guarantees against title defects or encumbrances. This type of deed is often used in tax sales or foreclosures.

Grant Deed

A grant deed includes a couple of key assurances: the seller has not transferred the title to anyone else, and the property is free from undisclosed encumbrances. It offers more protection than a quitclaim deed but less than a warranty deed.