Understanding Types of Real Estate Deeds in the USby Elizabeth G. Marketing Manager
A real estate deed is the foundation of every property transaction. It is a vital legal document confirming the legal transfer of the title between two parties. Property deeds are legal instruments to establish the current owner of the real estate by transferring ownership interest from the previous owners. Proper notarization of the real estate deed is crucial for completing the transaction. If you want to understand the different real estate deeds in the US, keep reading.
Individuals seeking a quick and hassle-free transfer of their interest in the real estate to another party should choose the option of a Quitclaim Deed. The property owner releases and quits all claims to the real estate title, providing no guarantee of existing liens or claims. The title owner gives up all interests in the property while transferring its title to the grantee.
A Quitclaim Deed is not a standard real estate deed for selling home property. It enables the owner to forsake all interests in the property. A Quitclaim Deed is suitable in these situations:
- The owner wants to renounce their interest in a title having several property owners.
- Forsaking ownership of a marital property
- Transfer of interests in a home in a divorce
- Adding a spouse as joint owner of the property after marriage
- Complying with a court-supervised settlement
General Warranty Deed
A warranty deed is the standard deed in most property transactions that involve the sale of the property from an existing owner to the buyer. It assures the seller that the property is free from liens, claims, or encumbrances. A Warranty Deed is the most helpful choice when buying a home because the seller confirms the property title is free from existing and past claims, liens, and encumbrances. It certifies the seller's legal ownership and ability to transfer it to the buyer.
Limited Warranty Deed
Unlike the general warranty deed, a Limited Warranty Deed or Special Warranty Deed does not cover the claims or liens that occurred before the grantor's ownership period. Special Warranty Deed provides a limited guarantee to the buyer against encumbrances during the seller's ownership term. A Limited Warranty Deed is an intermediate option between a Quitclaim Deed and a General Warranty Deed. Banks transfer the title of a foreclosed property to the buyer through a Limited Warranty Deed.
A grantor and grantee must take all precautions to ensure the correctness of the deed to avoid legal complications. A Scrivener’s Affidavit is helpful to address clerical errors, omissions of words, or typos. The creator of the deed may prepare the affidavit. The original grantor need not sign it. However, serious mistakes need correction through a Correction Deed. Mistakes like a wrong property description can be severe and need correction. Preparers of the original documents must create the Correction Deed and execute it through a licensed real estate attorney.
Real estate deeds are the most important documents for recording property transactions. Knowledge about types of real estate deeds is crucial for making an informed decision if you are selling or purchasing a property.
Created on Oct 31st 2023 09:06. Viewed 81 times.
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