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Real estate transactions rely heavily on deeds as an important mechanism for transferring property rights from one party to the next. Although deeds might seem complex at first, this blog will soon have you navigating them like an expert.
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General Warranty Deed
Starting off this blog with the ultimate deed toolkit is the General Warranty Deed. This type of document provides maximum coverage and ensures that a grantor possesses clear title to real estate as well as has legal right to sell it. In essence, this document promises its grantee that their title is free from claims or encumbrances. Acting like the grantor saying, “if there are any skeletons in this property’s closet, I’ll take care of them,” plus legal recourse should any issues arise from dealings between two parties.
Special Warranty Deed
Next is the Special Warranty Deed, which offers similar but less stringent guarantees than the General Warranty Deed. Under it, the grantor guarantees they have done nothing to encumber their property during their ownership. Think of it like buying a used car with an agreement that no previous accidents happened since being purchased. Any previous scrapes and bumps belong to someone else and as with used car transactions it’s always wise to do your due diligence before accepting this type of deed.
Quitclaim Deed
Next comes the Quitclaim Deed, the unpredictable one. In essence, this deed involves the grantor giving away any interest they hold in a property without making any warranties and is like selling a mystery box with treasure or air within. Commonly used among family members or to resolve title issues quickly and simply, Quitclaim Deeds are an efficient and straightforward way to transfer property rights quickly. Like using whatever ingredients are at hand to make a sandwich from, while satisfying immediate needs, this type of deed may cause further digestive discomfort later down the road should something unexpected come up. Therefore make sure that prior to accepting such deed type deed.
Bargain and Sale Deed
Now let’s move onto the Bargain and Sale Deed, similar to buying pre-owned items “as-is.” This type of deed implies that the grantor holds title but lacks full warranties like those offered with General Warranty Deeds. Common users include local governments and lenders after foreclosure who wish to let new owners know, “You get what you see, we aren’t responsible for any hidden gremlins.”
Grant Deed
Finally, there is the Grant Deed, an intermediate form of warranty deeds which ensures the title hasn’t been transferred before and that there are no encumbrances placed by the grantor on their property. More assertive than Quitclaim Deeds but without providing extensive guarantees like General Warranty Deeds. Think of Grant Deeds like functional sedans, reliable yet offering moderate guarantees.
Conclusion
Mastering deeds is like mastering the intricate roads of real estate. By understanding General and Special Warranties, Quitclaim, Bargain and Sale, and Grant Deeds, you can navigate with greater ease through every real estate transaction – knowing which tools to use for each. Knowing this knowledge could save you from future headaches or possible legal battles.
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