While there are various types of deeds, their purpose is the same: to make sure that ownership of the property is transferred from grantor to grantee. However, it is important to know how these deeds differ and ensure that you receive all the necessary documentation to give you full ownership of your home. A deed search is required when you order a deed prep.
A grant deed is one of the most commonly used deeds for transferring property title. It states that the property has not been sold by the seller to anyone else and that the property is not burdened by any undisclosed encumbrances (e.g., a mortgage or lien).
While the content of a grant deed can vary between different states, it generally includes a “granting” clause that transfers the title, the names of the grantor (seller) and grantee (buyer), a description of the property, and signatures.
A warranty deed states that the seller has good title to the property and has a right to sell it to you. While similar to a grant deed, the warranty deed states that the grantor will warrant and defend title over the property, meaning that the grantor guarantees that the ownership is free of any defects, even if they result from a prior owner.
In general, a warranty deed includes a statement that there are no undisclosed liens or encumbrances on the home, that the grantor is the owner of the property, and if this information is incorrect, the grantor will compensate the grantee. Warranty deeds are often used in the Midwest and Eastern states.
A quitclaim deed states that if the seller has an ownership claim, that person agrees to quit that claim. Unlike a grant or warranty deed, it does not specify which rights are being transferred, but rather it confirms that the grantor agrees to give up any rights that he or she may hold.
Therefore, there is a risk with a quitclaim deed that the grantor may not actually have owned the property, or that there may be others who own the property. The main benefit of a quitclaim deed is that it prevents the grantor from later claiming an interest in the property.
A quitclaim deed is often used to transfer ownership of a property among family members, such as between parents and children or among siblings, or to add or remove a spouse from the property title, particularly as a result of marriage or divorce. These deeds are also commonly used by corporations transferring property among closely related entities or when a property is being transferred into a family trust.
An insurance company that finds a “cloud” in the title of a property it is looking to insure might also ask the person to quit his or her possible claims via a quitclaim deed.
Other Types Of Deeds
Other types of deeds that are used to transfer ownership include:
- A gift deed, where the property is transferred without any payment of money, such as between relatives.
- A deed-in-lieu of foreclosure, which may be used by a seller who is in danger of losing his or her home as a result of falling behind on mortgage repayments. The seller may decide to negotiate with the lender to accept this deed as a way of avoiding foreclosure.
- A tax deed, where the home is sold to pay off unpaid property taxes.
EasyDocs123.com uses attorneys to prepare the deeds and to verify everything is done according to state regulation in the state where the property is located. When you order this service you will be contacted to assess your situation and determine what is the correct type of deed for you.
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To get started we will need the complete property address and reliable contact information for you. When we contact you additional information will be requested.