• Alex

PROTECT YOUR RIGHT TO YOUR LAND WITH A DEED

Deeds are used for the purpose of proving that you are the rightful owner of a piece of land, and protects you in case another party attempts to make a claim against the property. They are prepared either by a qualified attorney or a title company. It’s only after you’ve fulfilled all the obligations to the seller that the deed will be transferred to you, so if you’ve decided to pay on monthly installments, the deed will typically only become yours after you’ve made the final payment.

Normally, these documents are rather about one page, but sometimes, if they include restrictions and special granting clauses, the length can exceed that amount. Besides being a reliable way to prove that you’re the legitimate owner of a piece of land, there are other benefits associated with it, such as tax benefits and home improvement rights.

So what are the most appropriate types of deeds for a land ownership transfer you have in mind? Let’s go over the most common types of property deeds and explain the specifics of each one:

1. Quitclaim deed

This type of deed allows for the transfer of property rights among relatives and acquaintances. In most cases, no money exchanges hands. A Quitclaim deed does not specify the extent of the grantor’s interest. Moreover, the grantee does not receive a guarantee.

2. Warranty deed

A Warranty deed is one of the most common types if deeds you’re likely to encounter. Essentially, it’s used when transferring land ownership to another person and it guarantees that the seller is within his or her rights to sell you the land. In other words, the deed acts as proof that it is free of debt. Should any problems arise (like unsettled debt), the seller is required to compensate the buyer.

This type of deed is practically the same as a Grant deed, however, there’s a small difference: a Grant deed does not protect against defects of title, while a Warranty deed does. In California, for example, a Grant deed is the norm and it’s what you can expect to see in most cases.

3. Bargain and Sale deed

It’s used when selling land but also in special cases like transferring the ownership of court-seized properties. Just like other deeds, it’s used to signify the land ownership transfer from the seller to the buyer. However, it does not guarantee that the seller owns the land without any debts. The characteristics of a Bargain and Sale deed closely resemble those of a Quitclaim deed; however, in this case, the land is sold, so it has all the elements of a monetary exchange.

4. Special Warranty deed

This type of warranty is commonly used in commercial property sales. Unlike what’s the norm with regular Warranty deeds, a Special Warranty deed does not protect you against everything that went wrong in the land’s entire ownership history. It does have an element of guarantee to it in the sense that it protects you against problems that came to be during the seller’s ownership of said property.

One final important note – To be legal, a deed must be recorded, usually at a county register of deeds office.