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. 

Selling Your House with a Lease Option

It’s a buyer’s market, and selling your home can be tough. For one reason or another, many buyers aren’t quite ready to make the leap into purchasing a home. That’s why so many sellers today are renting their homes to individuals who then have the option to buy the home when their lease is up. Selling your home with a lease option is a great way to ease the buyer in and earn a little extra cash in the process.

Here are some tips that can help you navigate the process of selling your home with a lease option:

1) Make sure it’s right for you. While lease options can be beneficial to some, they are not for everyone. Remember that the person who is leasing your home is not required to purchase it once the lease is up, so you may need to start the process over again when it is. You’ll also want to make sure that you’ll be able to keep up with making repairs to the home while it’s being leased, as that will still be your responsibility. If you need the money from your home sale right away, then a straight sale might be a better option.

2) Do a background check. Because you will be responsible for the condition of the house while it’s being leased, make sure you pick the perfect tenants who will make your job as landlord as easy as possible. Find someone with a steady monthly income and good references from past landlords or employers. You can also feel free to have your tenant pre-qualified for a mortgage. Remember that the ultimate goal is to have the tenant buy your home, so it doesn’t hurt to see where they stand right away.

3) Make the contract. Before you get started on the contract, you’ll want to write up a disclosure form for your tenant that will describe any problems with the home that you know of before the tenant moves in. The contract that you and the tenant will sign can be best attained from your local attorney or real estate agent. The contract should include the purchase price of the home, the amount of option money you will collect (typically 2-4 percent of the purchase price), how much of the tenant’s monthly payment is going to be credited toward the option and how long the lease term will be.

4) Get the right insurance. Make a call to your insurance agent so that you can update your policy whenever needed. You may need a dwelling policy now that you won’t be the owner and occupant of your home, and you should also make sure that your tenant has the appropriate renter’s insurance.

5) Sell your home. The ultimate goal is to sell your home to your lessee. Before or at the end of the lease term, your tenant may decide to exercise the leasing option that was agreed upon in your contract. Any option money paid toward the house will go toward the home’s down payment. This can be anywhere between 0-100 percent of the monthly payment, depending on what you stated in your contract. In many cases, the tenant will find that subtracting this amount from the total needed will decrease the overall cost of the down payment and make it easier for him or her to get a loan for the house.

While the real estate market in Chester County is certainly picking up steam, there are still many home sellers who are turning to lease options to ultimately get deals done. If you’re considering this option, work with an experienced real estate agent to make sure you have all of your bases covered. 

Chester County: Attractive to Homebuyers

Located in beautiful southeast Pennsylvania, Chester County is home to many communities that make up the Main Line western Philadelphia suburbs. Rich in history and character, Chester County is known for its friendly neighbors and exciting attractions. This makes it a great place for people looking to buy real estate.

Education: Chester County puts a large emphasis on education, and in doing so offers several public, charter and independent schools for pre-school, elementary school, middle school and high school. The county is also home to a well-established library system and seven colleges and universities. Whether you’re looking for a highly rated school system for your children or a top-quality college education for yourself, Chester County has everything you need to succeed.

French Creek State Park 

Indoor & outdoor recreation: Work out at the Y or go for a horseback ride at Spring Creek farm. No matter what you like to do for fun, Chester County will keep you busy. It’s also home to several state and county parks, including White Clay Creek Preserve and French Creek State Park. Enjoy fishing, hiking and biking outdoors, or have indoor fun bowling or seeing a movie.

Dining: From Lasorda’s Restaurant and Pizzeria to Jashimalyan Exotic Indian Cuisine, you’ll find the full spectrum of foods from around the world. For fun with the kids, check out Maggie Moo’s ice cream. Looking for a drink? The Whip and Beaver Creek are just two of the most popular taverns in the area.

Shopping: To give you what you need when you need it, Chester County has a huge array of shopping centers and stores. Visit the Wine and Beer Emporium, or stop at Plato’s Closet for some clothes shopping. Enjoy a Sam’s Club membership or check off items on your grocery list at any of the many stores Chester County has to offer. For convenience and class, this is the place to shop.

Festivals: Chester County is home to some of the best festivals in the country. From the West Chester annual May Festival to the Turks Head Music Festival, there’s always something to enjoy. In June, you can have a good time at the Brandywine Hospital Strawberry Festival, which offers games, rides, music and more. Enjoy fine dining at the Chester County Restaurant Festival, in which over 60 of the county’s best restaurants show their stuff by offering up food, beer and wine, together with some great live musical acts. With its wide array of festivals, Chester County has something going on all summer long.

Chester County truly exemplifies the best of what suburban Philadelphia has to offer. If you happen to be in the market for a home, it’s wonderful area to check out.

Tips for Finding a House to Buy in Chester County, PA

The market for buying a home in Chester County, PA is large, and zeroing in on the perfect home for you might be a little overwhelming at first. Think of it this way—when you go shopping for groceries, you make a list of everything you need or want. The process for buying a home, at its core, works in the same way.

The following are some tips to help you find a home to buy in Chester County:

1. Know your budget. Finances are one of the most important factors that go into choosing suburban Philadelphia real estate. Too many individuals fall into the trap of going to a house showing, falling in love with a house and then finding out that it’s far beyond their price range. To avoid disappointment and wasted time, be sure to set a specific budget for yourself and only look at homes within that price range. Be sure to also take into consideration the cost of repairs for fixer-upper homes.

2. Know your lifestyle. Make a wish list of the things you need and want in your next home. Think about location and make sure that suburban Philadelphia real estate is the right fit for you. Do you need to live close to where you work? If you have children, do you need to live near a school? Also think about what type of home you want and what features you prefer. How many bedrooms and bathrooms do you need? Do you want a large backyard or attached garage? These are only a few examples of the questions you should be asking yourself before jumping into the home buying process.

3. Know your future. It’s important to know exactly when you plan to move into your new home and how long you intend on living there once it is purchased. Is this more of a starter home that you’ll be living in for a few years, or is this going to be a permanent residence? These factors will determine how important certain items on your wish list are and may have a heavier weight on your final decisions.

4. Know your realtor—and yourself. Be sure to choose a good realtor and get referrals from people who have had positive experiences in the past with buying or selling a home in Chester County, PA. Interview agents that specialize in buyer representation, and don’t settle for someone who you are not comfortable with. You should also seek out an agent with an ABR (Accredited Buyer Representative) designation. Remember, not all sales associates are realtors!

If you’re looking to buy a home in Chester County, work with an experienced real estate agent today. Realtor Liz Saunders has decades of experience in this market, and can help you find the perfect home for you. Contact her today or call 1-888-914-4833.