Wednesday, February 17, 2016

What is a Deed?

There are actually MANY different kinds of deeds.

For the most part when you go to sell your home, the escrow company will have a Grant Deed drawn up, and you will execute the Grant Deed in front of a Notary Public.

The other types of deeds are as follows:

General Warranty Deed:  Guarantees that nobody has any claim to the property.  This is the best type of warranty.
Special Warranty Deed:  Says they have had no problem with the property for as long as they've owned the property.  These are better than quitclaim deeds, but not as secure as a General Warranty Deed.
Quitclaim Deeds:  Basically releases any and all interest in the property. No warranty is implied.
Contract for Deeds:  Used in Seller Financing.  Can get messy if the original owner has a mortgage, and they end up not paying on the mortgage after they sold it with seller financing.

And then there are the following:

Sheriff's Deed and Tax Deed - These types of deeds are the results of the owner defaulting either on the mortgage payment resulting in a sheriff's sale or defaulting on property taxes resulting in a tax sale.
Administrator's Deed - Used to transfer a property when an owner dies without a will.
Executor's Deed - Used when a person dies with a will to transfer the property.
Deed of Gift - Used when the property is transferred as a gift.

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