The Four Main Different Types of Deeds to Convey Title

There are four main types of deeds used in real estate to convey title, and they vary based on who is using them and what they are being used for. Before you buy your next home, make sure that you are getting a deed that will benefit you the most.

The following is a rundown of the types of deeds and how they are used:

General Warranty: A general warranty deed offers the best protection for buyers. In a general warranty deed, the grantor is bound by certain warranties, which may include ones that are specifically stated or ones that are implied. These may also involve a covenant against encumbrances, a covenant of seisin, a covenant of quiet enjoyment or a covenant of further assurance.

A general warranty deed will extend through the entire lifespan of the property rather than just the period in which the seller lived there. Therefore, the seller or grantor is responsible not only for title issues that occurred while they were living there, but also for those that occurred before their ownership of the property.

Special Warranty: The person who grants a special warranty deed will give two warranties. The first is simply that the grantor has received the title. The second warranty is that the grantor acknowledges that the property was not encumbered while they owned it.

In short, the special warranty only covers any title problems that may have occurred while the grantor owned the property. These deeds are typically used by trustees and executors, and are far less beneficial to most buyers than the general warranty deed.

Bargain and Sale: The bargain and sale deed only warrants that the grantor has the title to the property. It doesn’t warrant against any encumbrances and doesn’t promise that the title held by the grantor is in good standing. These deeds are typically used for foreclosures and tax sales.

Quitclaim: A quitclaim deed offers the least amount of protection for buyers. It gives the buyer no covenants or warranties, and only conveys interests that the grantor has in the property. These deeds are typically used for transferring property from one family member to another and for fixing problems in the title.

Working through the process of determining a deed can be complicated process, and to get the most out of this experience, you should work with a highly qualified, experienced real estate agent in the Chester County area.