Special warranty deedĪ special warranty deed is one where the seller/grantor of the property warrants against defects in the title that occurred during the period the current grantor held the title (owned) the property. It is used when there is an actual physical exchange of money, for example, when obtaining a mortgage or buying a home. This is inclusive of the time period when the current grantor was not the titleholder of the property. The grantor guarantees that they own the property free and clear – there are no other parties that can claim the property. Among the three types of deeds, a general warranty deed has the highest grantor liability. General warranty deedĪ general warranty deed is one where the grantor guarantees the entire history of the property. These deeds are distinguished by what guarantees or warranties the grantor is expected to offer during the transaction – each deed has a different level of warranty. We will look into how these three deeds differ. The most common deeds are warranty deeds, special warranty deeds, and quit claim deed forms. Property title (ownership) can be transferred from a grantor to a grantee through different deeds. To fix title defects, which are often due to incorrect public errors, spelling mistakes, boundary or survey disputes, etc., when transferring property.Transfer of property, property ownership, or rights among family members, for example, parent to child.The common scenarios where a quit claim deed form is used include Each state has its distinct quit claim deed requirements. However, other parties with ownership rights to the property should sign the quit claim deed to ensure the grantee has complete ownership. Quit claim deed forms are not limited to the transfer of property ownership they can be used to convey outstanding debts and liens.Įven though there is no title search or title insurance (promises) used with a quit claim deed form, most states award the grantor an implied benefit of doubt that he or she is conveying the ownership or interest with good faith and is unaware of other ownership rights, conflicts of interest in the property at hand. Quit claim deed forms are faster than other methods of conveying property. When conveying ownership or interest using a quit claim deed, the risk of a title defect is reduced for little or no money is transferred during the transfer (non-traditional sale) – this being the reason why it is recommended for transfers between family members. Simple in that there are no expenses, assurances and it takes less time to execute – contrary to the transfer of ownership with a general or special warranty deed. When a simple, quick transfer of property is needed, a quit claim deed is sufficient. However, once the quit claim deed form is signed and issued, it prevents the grantor from claiming to have interest in the property in the future. It certifies that the grantor “quits” any property rights or “claims,” hence the name quit claim deed. The quit claim deed form releases or conveys the grantor’s interest or ownership rights without declaring the nature of the interests or rights and with no warranties.
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