Grant Deed

Certain situations, such as foreclosures, trust estate transfers, and other legal conditions depending on your state, may necessitate using a grant deed. It is important to check state law to determine if a new property tax assessment is triggered by the transfer.

Using a grant deed can help convey property while limiting responsibility for title issues that arose under previous ownership. If considering this route, it's advisable to consult a real estate lawyer and consider an owner’s title insurance policy.

If unable to obtain a general warranty deed, conducting a title search can reveal defects from previous ownerships, helping the new owner understand the clarity of the title chain. The search might uncover various restrictions, easements, liens, claims, penalties, and judgments within the title chain.

If issues are discovered, the buyer may still choose to proceed with the transaction. For instance, in foreclosure purchases, a buyer might assume responsibility for claims that do not significantly affect the property's long-term value.

In California, grant deeds and quitclaims are commonly used for real estate transfers. If the term "grant" appears in the deed's language, it is effective as a grant deed upon being signed, delivered, and accepted.

Implied covenants in a grant deed are enforceable by the deed's named recipient, according to California’s Civil Code, Section 1092. However, easements and restrictions are binding on future property owners.

A grant deed includes a warranty statement that the title is free from burdens that arose during the time of the grantor's ownership, along with specific and standard exceptions. It addresses taxes, assessments, conditions, easements, liens, leases, encroachments, or rights of way for third parties.

The recipient, or grantee, must record the executed grant deed with the county recorder to make it a public document, thus solidifying the new owner's property rights against third-party claims.