The title to real property may be changed by using a legal form called a deed. But which deed is right for you—a quitclaim deed or a warranty deed?
What does a warranty deed do?
Warranty deeds are different from quitclaim deeds in that the seller “warrants” or guarantees that he or she actually has a claim on the property and that the title is free of anything that could cause problems with the ownership of the property. The warranty deeds from Bradford Publishing include a phrase that says that the title is “free and clear from all former and other grants, bargains, sales, liens, taxes, assessments, encumbrances and restrictions of whatever kind or nature soever.” Because of this warranty, a seller who signs this warranty deed can be held legally responsible for any title problems.
Despite this, most properties have a few restrictions that will be passed along with the title to the new owners and listed on the deed. These might be taxes that will still be charged after the sale, covenants, and any easements. Exceptions like these usually won’t cause any problems with the sale and can be found on the title insurance policy or title commitment.
Different types of warranty deeds give different protection.
There are two different types of warranty deeds: general and special. Continue reading “So Many Deeds. Which One Do I Choose? (Part II)” »