Real Estate Term of the Day: Deed
DEED – a written document, properly signed and delivered, that conveys title to real property (Barron’s Dictionary of Real Estate Terms)
There are 3 types of deeds that can be used to convey title:
- General Warranty Deed – one that contains a covenant that the grantor will protect the grantee against any and all claims. Usually contains covenants assuring good title, freedom from encumbrances, and quiet enjoyment (the most common type of deed used in a ‘normal’ real estate transaction)
- Quitclaim Deed – a deed that conveys only the grantor’s rights or interest in real estate, without stating the nature of the rights and with no warranties of ownership. Often used to remove a possible cloud on the title (can be used to correct misspellings of names, remove a prior owner, etc.)
- Special Warranty Deed – a deed in which the grantor limits the title warranty given to the grantee to anyone claiming by, from, through, or under him, the grantor. The grantor does not warrant against title defects arising from conditions that existed before he owned the property (most bank owned properties are transferred through a special warranty deed)
For more information on types of deeds, click here.