4 Types of real estate deeds
If you’re interested in investing your money in real estate properties, you should have knowledge in understanding the basic things in real estate. The most important aspect in real estate property is the deeds.
Types of deeds
Deeds are written documents which transfers the ownership of a real estate property of one person to another. It basically means the transfer of title from one person to another. The deeds basically differ in agreement and warranty conveyed to the grantee by the grantor. The different types of deeds are:
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General warranty deed: This type gives the buyer (grantee) the greatest protection, because it includes warranties and agreement that the seller conveys with the title. Most of these warranties cover four basic things like, warranty of possession, warranty against encumbrances, warranty of further assurance and warranty of quiet enjoyment.
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Bargain and sale deed: In this type, the buyer gets no protection from encumbrances. It only states that the seller is the owner of the title. As it does not warrant good title from the seller, the buyer could be in trouble if in later period title defects appear. This type is mostly used for foreclosure action and in tax sales.
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Special warranty deed: It does not give so many warranties to the buyer like a general deed. It provides two warranties to the buyer, namely, warranty given by the seller that during his period of ownership, the property was not encumbered. The seller also gives warranty that he has received the title. This type is generally used by trustees and executors.
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Quitclaim deed: This type gives the buyer least protection. It only conveys the seller’s interests in the property. It does not provide any warranty to the buyer. This type is generally used to cure defects in the title.
If you’re dealing with real estate properties, it would be better for you to understand all the types of deeds and the warranties covered by them.
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