What Is the Difference Between the Different Types of Deeds?CenturyTree
A deed is a legal document that lays out the different aspects of a property and is used when transferring the ownership of a property from one person to another. There are many different types of deeds that have different purposes. We are going to focus on the three types that we encounter most often and explain the differences between them.
This type of deed is used to provide conveyance and protection to those involved. This type of deed includes a warranty. This shows that the seller or the property does not have any debt and there is a right for the property to be sold. This requires the seller to compensate the buyer if there are any debts or problems not listed in the deed.
Special Warranty Deed
This deed is slightly different from the warranty deed. This special warranty only encompasses the time the property has been owned by the current seller, not its entire history. This means the warranty only covers issues that may have occurred during their time of ownership and not any issues that may have occurred previously. Typically, this type of deed is used with commercial properties or residential real estate.
Quit Claim Deed
This type of deed is usually used when the participants are in some sort of relationship with one another, whether they be family members, divorcing spouses, or friends. This type of deed allows for a simple transfer of property rights and claims to another party. Most of the time there is no money involved and there is no warranty or guarantee. The seller merely gives the buyer whatever rights, if any, the seller has in the property.
What Type of Deed Will I Receive from Century Tree?
We use Warranty Deeds or Special Warranty Deeds at Century Tree. Once payment is received in full, we will communicate with you regarding the name(s) and contact information you would like listed on the new deed. This is the information the County will have on file for all future tax bills. We will submit a draft of the document to you for review and once you give us the “thumbs up” we will submit it for recording with the County along with any necessary filing fees. Once recorded, you own it free and clear. It’s that simple.