Warranty deed vs deed

What is a warranty deed? Is a grant deed a good deed? The warranty deed is commonly used when a property is purchased at or around its fair market value. The deed implies certain warranties that the seller, or grantor, provides to the buyer, or. By signing the deed , the grantor gives his rights to the property to.

A deed of trust transfers the legal title of a property to a third-party trustee, who holds the title until the terms of the contract are fulfille when the borrower repays the lender in full. A warranty deed transfers property between a grantor (the seller) and a grantee (the purchaser). Quitclaim Deed , the central difference lies in the guarantees.

However , it only promises a clear title for the time that you, as the seller , have owned the property. This type of deed is generally used in commercial real estate transactions. This is generally used for commercial real estate transactions, and can also be called a Covenant Deed. A quitclaim deed , sometimes called a non-warranty deed , conveys the grantor’s property title to the grantee without any warranties or promises.

As a result, it provides the least amount of protection to the grantee. If the grantor has a clear title, then a quitclaim deed conveys the property as effectively as a general warranty deed. We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions.

A grant deed is the middle-level deed because it includes more guarantees of title than a quitclaim deed but few guarantees than a warranty deed. The grant deed is also sometimes known as the. The California general warranty deed is a legal document that shall allow a Grantor (seller) to transfer ownership or the title of a parcel of real estate to a Grantee (buyer).

The document shall guarantee, that the Grantor legally owns the property and is selling the property in good faith and that there are no lien’s of encumbrances. The warranty , or general warranty , deed is the deed most commonly used to transfer ownership of real property. The seller, also called the “grantor,” must show that there are no defects in title before the property is sold. Defects preventing a sale can include judgments, tax liens, mechanic’s liens or outstanding mortgages.

After a title search, if none of those issues arise, the. With this type of deed , the grantor guarantees that she actually holds the title to the property and has the right to sell that property. Should the seller then breach any of these covenants, the grantee can sue the grantor. Courts usually award the warranty deed grantee the difference between good title and the actual state of title of the property. The main difference between a warranty deed and a trustee deed lies in who it protects.

Like all deeds , these two legal documents are both used to transfer titles from one owner to another. Colorado recognizes several types of deeds to transfer real property. Just from the names, you might guess that a buyer would probably want something with the word “ warranty ” in the title.

By using a warranty deed , the grantor assures the grantee that there are no defects in title at all and the grantor is obligated to pay the grantee for any damages the grantee incurs due to a problem with title to the property. It means that you, the owner, have clear title and a right to sell the property, and no knowledge of any unforeseen issues that might come up with the title for the life of the property , not just since the time you owned it. There are other forms of deeds , but they provide less assurance to the grantee that they are receiving clear title to the property. Warranty sounds a lot better than. They also allocate less risk to the grantor associated with.

The two terms are closely connecte but different in practice. A title is a concept that refers to the ownership of a property. Titles are transferred by deeds , which is the physical legal document that is given from the seller to the buyer.