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What a Grant Deed does not promise, however, is that the grantor will defend the grantee’s title interest in the property if post-transfer problems arise. Or, if a married couple owns a home through joint tenancy but one spouse leaves in a divorce, the departing spouse might execute a Quitclaim Deed as part of a Divorce Settlement Agreement. Since a Quitclaim Deed does not transfer a title interest and only relinquishes a claimed interest, using a Quitclaim Deed to transfer property can carry risks to the grantee. For example, if a grantor’s relinquished claim of title is not valid, and the Quitclaim Deed grantor is under no obligation to help the grantee if a challenge is brought.
How Does A Deed To A Property Work?
Deeds are public documents, so you may need to present the changes you want to make in court. Assuming these changes are approved, you’ll need to document these changes with the Recorder of Deeds in your county. Deeds can also sometimes need to be changed due to clerical errors or a change in ownership.
Types of Deeds
Her creative talents shine through her contributions to the popular video series "Home Lore" and "The Red Desk," which were nominated for the prestigious Shorty Awards. In her spare time, Miranda enjoys traveling, actively engages in the entrepreneurial community, and savors a perfectly brewed cup of coffee. If you’re unsure if you need to make changes to your house deed or need guidance on how to start the process, a real estate attorney is likely the best person to help you. That said, there’s no standard document that is used for all real estate transactions.
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In other words, only defects that arose during the grantor's ownership of the property are warranted. Due to this limitation, the special warranty offers the grantee less protection than the general warranty deed. Many purchasers of real estate will insist on a general warranty deed to protect against problems that could arise as a result of a special warranty deed. A deed works by transferring ownership rights from the grantor (or seller) to the grantee (buyer). This is done through the seller and buyer signing the deed and it being notarized.
Understanding Property Deeds and Your Ownership Rights
Deed transfer costs vary considerably by location since different locales charge transfer taxes at different rates. You may need to pay costs to an attorney or title company for compiling and filing the paperwork. Let’s more closely examine some of the most common types of special purpose deeds. As mentioned, a general warranty deed imparts a full warranty of title.
The Bankrate promise
The process to get such alterations made can vary from state to state, so you may need to do some research. In some cases, you may need to present your requested changes in court since home deeds are public documents. Certain essential elements must be contained within the deed for it to be legally operative.
Property deed vs. title
Miranda Crace is a Senior Section Editor for the Rocket Companies, bringing a wealth of knowledge about mortgages, personal finance, real estate, and personal loans for over 10 years. Miranda is dedicated to advancing financial literacy and empowering individuals to achieve their financial and homeownership goals. She graduated from Wayne State University where she studied PR Writing, Film Production, and Film Editing.
What’s The Difference Between A Property Deed Vs. Title?
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If an ownership dispute arises, for example, you may be able to resolve it by simply confirming the name on the deed. When it comes to buying a house, there’s a lot of terminology to know. “Property deed” is a term that many people have heard but may not be able to tell you exactly what it is. While it’s similar to a house deed, property deeds can be used for all sorts of real estate. Deeds may also vary in terms of the type of protection they provide property owners. Quitclaim deeds, for example, offer no extra protections to grantees.
Of the three types of deeds discussed so far, a quitclaim deed offers grantees the least amount of protection. Quitclaim deeds simply transfer the title without any warranty of title, so if any title defects are discovered after conveyance, the grantee is the one legally responsible. LMB Mortgage Services, Inc., (dba Quicken Loans), is not acting as a lender or broker. The information provided by you to Quicken Loans is not an application for a mortgage loan, nor is it used to pre-qualify you with any lender. This loan may not be available for all credit types, and not all service providers in the Quicken Loans network offer this or other products with interest-only options.
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Different deeds provide various levels of protection to the grantee and the obligations of a grantor are determined by the form of the deed. If the grantor has a good title, the quitclaim deed is essentially as effective as a general warranty deed. However, if the title contains a defect, the grantee has no legal recourse against the grantor under the deed. A quitclaim deed is often used if the grantor is not sure of the status of the title (whether it contains any defects) or if the grantor wants no liability under the title covenants. They can fall into a variety of different categories, and there are certain nuances to each that you may not be familiar with. This article will review what a house deed is and how it affects your property rights as a homeowner.
Different states have various guidelines regarding the kind of information that a house deed should include. But generally, a deed should provide a detailed description of the property and information about its former owners (referred to as the grantors) and the new owner (referred to as the grantee). Since deeds and titles are related concepts, they’re often mixed up.
Common in divorce situations, a quitclaim deed is when the seller “quits” any rights to the property. The deed transfers any ownership the seller might have in the property, but it does not guarantee that this ownership exists. A warranty deed is the type of deed used when getting a mortgage, and provides more protection for the person buying the home compared to other kinds of deeds. A quitclaim deed serves to transfer a property from a grantor to a grantee, with very little protection for the grantee.
