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| Home > Information > General Real Estate Deed Information |
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| General Real Estate Deed Information |
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The term “real estate deed” encompasses many different types of instruments, each with an express purpose. Some of the most common types of real estate deeds are quitclaim deeds, deeds of trust, warranty deeds, and deeds in lieu of foreclosure.
Quitclaim deeds convey the grantor’s interest, if any, in a parcel of real estate. They include no covenants of warranty, which means the grantor makes no promises about a clear title, or even actual ownership of the relevant property. Quitclaim deeds are often used for adding or removing a person’s name on the title to real estate because of marriage or divorce. Ownership interest can be transferred using a quitclaim deed, but this form of conveyance provides little or no protection for the grantee.
The deed of trust is quite similar to a mortgage in the sense that it records information about the property, the name of the company or the individual providing the loan, the loan terms, and the names of the borrowers, etc. The funding source can be a private lender, a financial institution, or it can be self-financed by the property owner. Use a promissory note to secure a deed of trust, and include a Truth in Lending statement and other documents as required by state and local law.
A warranty deed contains a written promise that the grantor owns the property, is free to convey it, and that it is unencumbered from liens, mortgage notes and judgments. There are two types of warranty deed: the general warranty deed and the special warranty deed. The former is used to claim that the grantor owns the property and is allowed to sell it legally. It also guarantees that the title of the property is clear. If a problem arises after the sale, the grantor must defend the grantee’s rights. The special warranty deed only covers the property during the time it was owned by the seller. This kind of deed is normally used for transferring foreclosure real estate, commercial properties, probate properties, and real property that is transferred to a trust.
Finally, the deed in lieu of foreclosure is used when the borrowers are permitted by the bank to return the real estate instead of undergoing the foreclosure process. This deed performs two primary functions: removing the borrower’s name from the title and transferring the property interest to the mortgage lender.
Consult an attorney with questions about which type of real estate deed to use.
View Available Real Estate Deed Forms |
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| April 10, 2012,
Information deemed reliable but not guaranteed, you should always
confirm this information with the proper agency prior to acting.
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