There are at least several types of deeds.
Warranty deed
Warranty deeds offer the greatest protection to the grantee, as they guarantee that the grantor actually owns the property and that there are no outstanding claims or encumbrances against it. Quitclaim deeds offer no such guarantees and are typically used in situations where the grantor is not sure of their ownership status, or where there may be potential claims or encumbrances against the property.
Quitclaim deed
A quitclaim deed is the simplest form of a deed. A quitclaim deed transfers whatever ownership interest the grantor has in a property to the grantee, but makes no guarantees about the nature or extent of that interest. In other words, the grantor does not promise that they actually own the property or that there are no outstanding claims or encumbrances against it.
Transfer on death deeds (TODDs)
Transfer-on-death deeds (TODDs) are a relatively new type of deed that allows property owners to transfer ownership of their property to another person upon their death, without having to go through the probate process. TODDs are only available in certain states and may have different requirements depending on the state in which the property is located.
General Warranty Deed
A general warranty deed contains six covenants, or guarantees, that the grantor makes to the grantee. These are:
That the grantor has good property title and has the legal right to sell it;
That there are no outstanding claims or encumbrances against the property;
That the property will be free of defects and encumbrances at the time of transfer;
That the grantor will defend the property title against any claims or encumbrances;
That the property is being conveyed “as is,” without any representations or warranties about its condition; and
That the grantor has not previously sold, or conveyed an interest in, the property to anyone else.
Special Warranty Deed
A special warranty deed is similar to a general warranty deed, but with two important distinctions. First, the grantor only makes the first three covenants listed above – that is, they guarantee good title and that there are no outstanding claims or encumbrances, but make no guarantees about the property’s condition or any potential defects. Second, the grantor only promises to defend the property title against claims or encumbrances that arise during their ownership of the property – not claims or encumbrances that arose before they owned it.
Lady Bird Deeds
A lady bird deed, also known as an enhanced life estate deed, is a type of deed that allows the grantor to retain ownership of the property while giving the grantee the right to live in and use the property for their lifetime. The grantor can still sell or transfer the property during their lifetime, but upon their death, ownership will automatically pass to the grantee.
Corrective deeds
A corrective deed is a type of deed that is used to correct errors in a previous deed. This might be necessary if the property description was incorrect, the wrong grantee was named, or there were other similar mistakes. Corrective deeds typically contain language stating that they are being executed for the purpose of correcting errors in the previous deed.
A property deed must be properly prepared and executed in order to be legal. This typically involves having the document drawn up by a lawyer, and then signed and witnessed by the grantor and grantee. The deed should then be delivered to the grantee, who should keep it in a safe place.
Let’s consider filling out a deed based on a quitclaim deed.
Step 1 – What property is going to be transferred by this deed?
The quitclaim deed should start by describing the property that is being transferred in detail. This might include the address, legal description, and any other relevant information.
Step 2 – Who is going to transfer property?
The quitclaim deed should then identify the grantor, or person who is going to transfer property ownership of the property. The grantor’s name, address, and any other relevant information should be included.
Step 3 – Who is receiving the property?
The quitclaim deed should then identify the grantee, or person who is receiving ownership of the property. The grantee’s name, address, and any other relevant information should be included.
Step 4 – What are the terms of the transfer?
The quitclaim deed should then describe the terms of the transfer, such as whether the property is being sold, gifted, or inherited. If the property is being sold, the purchase price should be included. If the property is being gifted, it should be stated that no consideration is being given in exchange for the ownership of the property.
Step 5 -Who will prepare the deed?
The quitclaim deed should then identify who will prepare the deed. This is typically the grantor or the grantee, but it could be some other person if specified in the property deed.
Step 6 – Signature Lines
The property deed should then have signature lines for the grantor and witnesses. The grantor must sign the deed in front of two witnesses, who must also sign the quitclaim deed. Notary acknowledgment is not required but may be desired.
After the property deed is legally binding, the document is usually submitted to one of the recognized offices in the area where the property is located, usually the county recorder’s office.
A property deed is an important part of transferring ownership of property. By following these steps, you can ensure that your deed is properly executed and recorded.
Deeds are typically used in situations where the parties want to transfer property ownership clearly and unequivocally. They are often used in situations where the property is being sold, but can also be used to transfer property as a gift or inheritance. Deeds are also sometimes used to create a life estate, as in the case of a lady bird deed.
If you are considering using a deed to transfer property ownership, there are a few things you should keep in mind.
First, make sure that you understand the different types of deeds and which one is right for your situation.
Second, be sure to have the deed professionally prepared by an attorney or other qualified professional.
Finally, make sure that the property deed is properly executed and recorded with the appropriate authorities which is typically a county recorder’s office.
There are several benefits to using a property deed to transfer ownership of property, as opposed to other methods such as a contract or verbal agreement. First, deeds are typically much more difficult to challenge or overturn than other types of agreements. Second, because they are written documents, they provide a clear and permanent record of the transfer of ownership. This can be important if there is ever any dispute about who owns the property or what the terms of the agreement were. Finally, a property deed is typically much more likely to be enforced by courts than other types of agreements.
There are also some potential drawbacks to using a deed to transfer ownership of property. First, because this is a legal document, a property deed can be complex and time-consuming to prepare. Second, if the terms of the property deed are not properly drafted or executed, it may be invalidated by a court. Finally, if the grantor later discovers that there are outstanding claims or encumbrances against the property that they were not aware of, the grantee may be able to sue them for damages.