Types of Property Deeds
Although, it may seem simple to transfer title of a property to another person or entity, there are specific types that should be used when doing so. Here they are:
Often used for residential real estate sales, a Warranty Deed acts as a guarantee to the buyer that the seller has the right to sell the property, and that the property is free of debt or other liens. The seller must defend the title against any and all other claims and compensate the buyer for any unsettled debts or problems.
Special Warranty Deed
Differing from a Warranty Deed , the seller's guarantee does not cover the property's entire history. Generally, the seller only guarantees against problems or claims created during the seller's ownership of the property. A Special Warranty Deed is often used in commercial property transactions or residential real estate sales.
Most often used by family members, divorcing spouses, and people well-acquainted with each other, a Quitclaim Deed allows one party to transfer property rights and claims to another party. Usually there is no monetary exchange. The extent and authority of the grantor's interest or claim to the property is unspecified, and the grantee is not provided with a guarantee. An Inter-Spousal Deed Transfer is a type of Quitclaim Deed that transfers ownership of a married couple to a spouse’s sole and separate property.
A Grant Deed transfers interest in a property from the seller to the buyer in exchange for an agreed-upon price. While the Grant Deed guarantees that the seller owns the property and is legally able to sell it free of debt, it does not provide a guarantee against defects of title (unlike the Special and General Warranty Deed ). This type of deed is commonly used for residential real estate sales.
If you would like some assistance with drafting a property deed transfer, we can help you pick the right one that fits your needs! Contact us to get started at 714-209-8500
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