As a property owner, you should be aware of how a deed impacts your rights of ownership. It is your responsibility to understand the paperwork involved in any transfer, sale, or purchase of your property. The function of a deed is to provide documentation of a transfer of property ownership.
There are several different types of deeds that can be drawn during any property sale, and while they all serve similar purposes, their particular terms and functions vary. Two standard terms are tossed around when discussing property deeds: warranty deeds and quitclaim deeds. Each of these types of deeds is similar, but the differences between them are vital. Before you buy or sell real estate, you need to learn the basics about property deeds and their usage.
This article will explain the types of deeds and how they can impact your property rights. The differences between a warranty deed and a quitclaim are laid out below, including information on which deed is more appropriate for your situation. Finally, this article closes with a brief outline of how to skillfully create your own property documentation.
What Is a Deed?
A deed is a legal document. If you hold a deed, you can prove ownership of a piece of property. The property listed in the deed can be either real estate or personal property like a car or motorcycle. When property is transferred to a new owner, the deed is likewise conveyed. To properly transfer a title, you will typically record the deed in a local governmental office, such as with a county clerk.
For real estate transactions, transferring the property deed is usually done as at closing. All deeds should include:
- A listing of the grantor and grantee, which are the parties transferring and receiving the property, respectively.
- A description of the property allowing for identification.
- Any warranties contained in the transfer.
- An affidavit that valid consideration was part of the transfer (if required).
- The parties’ signatures.
The description of the property can be as simple as stating a specific plot in a housing subdivision. However, for larger parcels of land, especially in rural areas, a land survey can establish the boundaries of a piece of property.
Understanding Warranty Deeds and Quitclaim Deeds
Two of the most common types of property conveyance deeds are the warranty deed and the quitclaim deed.
What Is a Quitclaim Deed?
The quitclaim deed is a simple way of transferring ownership between parties. It does not contain any representation or warranty that the grantor’s title to the property is valid. This does not mean that all property transfers involving a quitclaim deed are inherently risky. Instead, there are specific instances when using a quitclaim deed can be a more appropriate - and less expensive- option.
Importance of a Quitclaim Deed
A quitclaim deed is helpful because it can quickly transfer title of a property during an as-is sale. Because it does not include any assurances regarding the validity of title, its usage is limited, and inevitably have several loopholes that you should know about. Typically, quitclaim deeds are executed between family members or others with a significant degree of trust. It can also be used to simply settle questions of title after you inherit land.
For example, if a piece of land has been in the same family’s hands for generations, younger members may seek to buy out an older relative’s stake. In this case, the relative could transfer their interest via a quitclaim deed. The transaction can be done quickly and would not require expensive land surveys or high legal fees.
What Is a Warranty Deed?
In contrast to a quitclaim deed, a warranty deed contains promises or assurances regarding the validity of the grantor’s title to the property. There are two basic types of warranty deeds: general and special.
A general warranty deed promises a clean title. That means the person selling or transferring the property represents that they have a valid title. They also assure the recipient that the property title has no defects throughout its chain of ownership. Additionally, the conveyed property does not have any liens or encumbrances upon it unless listed within the deed.
The second type, a special warranty deed, typically contains promises that there were no challenges to the title during the grantor’s ownership. However, it does not assure there were no issues regarding the title of prior owners.
Importance of a Warranty Deed
A warranty deed is the most common type of deed used during arm’s length real estate transactions. Because the grantor warranties the validity of title, the grantor is liable if a problem arises after the transfer. The liability damages can extend to defending against lawsuits, paying for land surveys or records research, or even compensating the recipient if they cannot use the land for its intended purpose.
Differences Between a Quitclaim Deed and a Warranty Deed
The following table contains some highlights of the differences between the two basic types of deeds.
| Quitclaim Deed | Warranty Deed | |
|---|---|---|
| Warranty | None | General or Special |
| Grantee Protection | None | Protected by whatever warranties are included. |
| Simple form | Yes | No |
| Uses | Family or closely held transfers. | Most commercial or personal real estate transactions. |
How To Create a Deed
Once you have determined whether a quitclaim deed or warranty deed is better suited to your needs, check out LawDistrict.com’s simple contract maker tool. Creating an accurate and complete deed is as easy as clicking a few buttons.
You will need a copy of the prior deed on the property you plan to transfer. In some states, you will need to list the exact same legal description of the property as contained in the earlier deed, unless you are only transferring a parcel of a property. Additionally, you will need the names of the grantor and grantee, the physical address of the property, and a mailing address for tax purposes.
Once you have created your easy quitclaim or warranty deed using LawDistrict.com, it is essential you promptly sign, notarize, and record the new deed. Your location’s particular rules, filing fees, and taxes can be best explained by your local clerk. For all other steps in creating a deed or other real-estate documents, LawDistrict.com has you covered!
As a property owner, you should be aware of how a deed impacts your rights of ownership. It is your responsibility to understand the paperwork involved in any transfer, sale, or purchase of your property. The function of a deed is to provide documentation of a transfer of property ownership.
There are several different types of deeds that can be drawn during any property sale, and while they all serve similar purposes, their particular terms and functions vary. Two standard terms are tossed around when discussing property deeds: warranty deeds and quitclaim deeds. Each of these types of deeds is similar, but the differences between them are vital. Before you buy or sell real estate, you need to learn the basics about property deeds and their usage.
This article will explain the types of deeds and how they can impact your property rights. The differences between a warranty deed and a quitclaim are laid out below, including information on which deed is more appropriate for your situation. Finally, this article closes with a brief outline of how to skillfully create your own property documentation.
What Is a Deed?
A deed is a legal document. If you hold a deed, you can prove ownership of a piece of property. The property listed in the deed can be either real estate or personal property like a car or motorcycle. When property is transferred to a new owner, the deed is likewise conveyed. To properly transfer a title, you will typically record the deed in a local governmental office, such as with a county clerk.
For real estate transactions, transferring the property deed is usually done as at closing. All deeds should include:
- A listing of the grantor and grantee, which are the parties transferring and receiving the property, respectively.
- A description of the property allowing for identification.
- Any warranties contained in the transfer.
- An affidavit that valid consideration was part of the transfer (if required).
- The parties’ signatures.
The description of the property can be as simple as stating a specific plot in a housing subdivision. However, for larger parcels of land, especially in rural areas, a land survey can establish the boundaries of a piece of property.
Understanding Warranty Deeds and Quitclaim Deeds
Two of the most common types of property conveyance deeds are the warranty deed and the quitclaim deed.
What Is a Quitclaim Deed?
The quitclaim deed is a simple way of transferring ownership between parties. It does not contain any representation or warranty that the grantor’s title to the property is valid. This does not mean that all property transfers involving a quitclaim deed are inherently risky. Instead, there are specific instances when using a quitclaim deed can be a more appropriate - and less expensive- option.
Importance of a Quitclaim Deed
A quitclaim deed is helpful because it can quickly transfer title of a property during an as-is sale. Because it does not include any assurances regarding the validity of title, its usage is limited, and inevitably have several loopholes that you should know about. Typically, quitclaim deeds are executed between family members or others with a significant degree of trust. It can also be used to simply settle questions of title after you inherit land.
For example, if a piece of land has been in the same family’s hands for generations, younger members may seek to buy out an older relative’s stake. In this case, the relative could transfer their interest via a quitclaim deed. The transaction can be done quickly and would not require expensive land surveys or high legal fees.
What Is a Warranty Deed?
In contrast to a quitclaim deed, a warranty deed contains promises or assurances regarding the validity of the grantor’s title to the property. There are two basic types of warranty deeds: general and special.
A general warranty deed promises a clean title. That means the person selling or transferring the property represents that they have a valid title. They also assure the recipient that the property title has no defects throughout its chain of ownership. Additionally, the conveyed property does not have any liens or encumbrances upon it unless listed within the deed.
The second type, a special warranty deed, typically contains promises that there were no challenges to the title during the grantor’s ownership. However, it does not assure there were no issues regarding the title of prior owners.
Importance of a Warranty Deed
A warranty deed is the most common type of deed used during arm’s length real estate transactions. Because the grantor warranties the validity of title, the grantor is liable if a problem arises after the transfer. The liability damages can extend to defending against lawsuits, paying for land surveys or records research, or even compensating the recipient if they cannot use the land for its intended purpose.
Differences Between a Quitclaim Deed and a Warranty Deed
The following table contains some highlights of the differences between the two basic types of deeds.
| Quitclaim Deed | Warranty Deed | |
|---|---|---|
| Warranty | None | General or Special |
| Grantee Protection | None | Protected by whatever warranties are included. |
| Simple form | Yes | No |
| Uses | Family or closely held transfers. | Most commercial or personal real estate transactions. |
How To Create a Deed
Once you have determined whether a quitclaim deed or warranty deed is better suited to your needs, check out LawDistrict.com’s simple contract maker tool. Creating an accurate and complete deed is as easy as clicking a few buttons.
You will need a copy of the prior deed on the property you plan to transfer. In some states, you will need to list the exact same legal description of the property as contained in the earlier deed, unless you are only transferring a parcel of a property. Additionally, you will need the names of the grantor and grantee, the physical address of the property, and a mailing address for tax purposes.
Once you have created your easy quitclaim or warranty deed using LawDistrict.com, it is essential you promptly sign, notarize, and record the new deed. Your location’s particular rules, filing fees, and taxes can be best explained by your local clerk. For all other steps in creating a deed or other real-estate documents, LawDistrict.com has you covered!
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