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)” »
The title to real property can be changed from one person to another by using a legal form called a deed. Different types of deeds provide the buyer and seller with different levels of protection against future title problems. But which Colorado deed is right for you—a quitclaim deed, a warranty deed, or a special type of deed for a specific transaction? A quitclaim deed may be all you need.
Just what does a quitclaim deed do?
A quitclaim deed (not “quick claim” or “quit claim”) is what it sounds like—a deed used to “quit” or end someone’s claim on the property. Quitclaim deeds are versatile and can be used to add or remove someone from the title, change ownership from joint tenants to tenants in common, or clear up problems with the title. Quitclaim deeds are frequently used for title transfers within a family.
A quitclaim deed is used to transfer a person’s interest in the property, but it doesn’t guarantee that the person who signs the deed actually has an interest in the property, nor does the deed specify how much of the property that person owns. Quitclaim deeds may be risky for the buyer, since these deeds provide no guarantee that the seller has good title or even that the seller owns the property. If a buyer uses a quitclaim deed and doesn’t do a title search, that buyer could wind up buying problems along with the property. Using a quitclaim deed means the buyer may have little recourse if problems arise after the sale. Continue reading “So Many Deeds. Which One Do I Choose? (Part I)” »