Understanding Deeds and its types

Overview of Deeds

A deed is a document containing the terms of an agreement, especially an agreement concerning the ownership of land or a building There are three main types of deeds namely general warranty deeds, special warranty deeds, and quitclaim deeds.

General warranty deeds provide the grantee with complete security, while special warranty deeds provide partial protection, and a quitclaim deed gives the grantee the least legal protection

Types of Deeds

Various types of deeds serve distinct purposes and can be categorized as follows:

Grant Deed

A grant deed assures two key guarantees: firstly, that the property has not been sold to another party, and secondly, that it is free from undisclosed encumbrances, such as outstanding liens or mortgages, ensuring a "free and clear" status of the deed. Grant deeds may not mandate recording or notarization, but it's typically advisable for the recipient to ensure these steps are taken.

Warranty Deed

A warranty deed, also known as a special warranty deed, asserts that the grantor has not caused any title defects during their ownership of the property. This deed provides the highest level of protection to the holder, offering assurances similar to those of a grant deed while additionally promising the grantor's commitment to defend the title against any future claims.

Quitclaim Deed

A quitclaim deed relinquishes a person's interest in a property without specifying the nature of their rights or interest. The grantor's legal ownership status may vary, and no assurances or promises are made. Quitclaim deeds are commonly utilized in divorce settlements and property transfers among family members.

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