In Real Estate there are 4 types of deeds that are commonly used. Below is a brief explanation of each.
General Warranty Deed: In this type of deed the seller conveys a property with warranties or covenants and is legally bound to these grantees. A General Warranty Deed provides the most protection to a buyer. Some basic warranties include:
-Covenant of seisin: This basically means that the seller owns the land and has the right to convey it.
-Covenant against encumbrances: The seller guarantees that the property is free from any liens or encumbrances that are not stated in the deed.
-Covenant of quiet enjoyment:This states that the buyer’s title will be good against any third party attempting to establish title of the property.
-Covenant of further assurance: This means that the grantor will provide any documents or information necessary to make the title good.
A warranty deed does not just cover the time a grantor owned the property, but it extends for the entire life of the property. The grantor of a warranty deed is liable for title problems that occur before and during their ownership.
Special Warranty Deed: This type of deed conveys just two warranties: that the grantor has received title and that no encumbrances occured during ownership that are not included in the deed. The grantor of this deed is not liable for any problems with the title that have occurred prior to their ownership.
Bargain & Sale Deed: This type of deed does not grantee against encumbrances on the property. All this deed guarantees is that the grantor holds title. This type of deed is most commonly used in tax sales & foreclosures. The grantor of this deed can not be held liable for any problems that later arise with the property.
Quitclaim Deed:This is the least protective type of deed for a buyer. This deed only conveys whatever interest the grantor has in the property. These types of deeds are typically used to fix defects in the title or to transfer property between family members.
