Types of Deeds for My Property

When you are getting ready to buy or sell your real estate, you may hear discussions about the deed to the property.  You may have some questions regarding the deed and its purpose. Many people are surprised to find there is more than one type of deed which can be granted to you, and each deed has different warranties. It is important to have an attorney with you to make sure you are getting a clean and correct deed.

In real estate transactions there are three main types of deeds which you may encounter. A general warranty deed, a special warranty deed, and a quit claim deed. Each are independent of each other and each promise different warranties to the buyer.

Quit Claim Deed

A quit claim deed offers the least amount of protection for home buyers. A quit claim deed does not provide a warranty of title. It does not even guarantee that the person transferring you the land, actually owns the land. A quit claim deed does not guarantee that there is nothing encumbering the property. This means, if the previous owner did not pay a tax bill, a tax lien could be placed on the property. The grantee of the quit claim deed has no recourse against the grantor because a quit claim deed makes no guarantee. You may be thinking, why would one even use a quit claim deed to begin with? A quit claim deed is easy when there is no uncertainty about ownership. For example, a recently married couple may want to add the new spouse’s name to the deed, or you would like to add a family member to your deed.

Warranty Deed

A warranty deed is the most common deed in a real estate transaction. A warranty deed warrants more than a quit claim deed.  For example, a warranty deed warrants the grantor has a valid interest in the property, the property is free of any incumbrances and the grantor promises they will defend title to the property against anyone who makes an unlawful claim. A warranty deed is a good option for buying a home because it allows protection on the property.

Special Warranty Deed

Another common deed is the special warranty deed. A special warranty deed however, only protect against any claims that arose when the Seller had the property. It does not protect against any claims or liens from the previous owner before the grantor. A special warranty deed is often done for homes with new construction or homes bought at a foreclosure sale. It is important you speak with a qualified attorney to go over your options and your protections any time you buy or sell a home.