Deed
A deed is an instrument that transfers title of a privilege or a thing from a grantor to a grantee. In the conveyances of real estate, a deed transfers ownership of the grantor, the old owner, to the grantee, the new owner. A real estate deed can include many warranties. The exact names of these warranties differ depending upon jurisdiction.
Regardless, the basic difference has to do with the degree to which the grantor warrants the title. For instance, the grantor may grant a “general warranty” of title against all claims. General warranties are often used for residential real estate transfers and sales. In other cases, the warranty may be limited to claims that occurred after the grantor took possession of the real estate. This type of deed is called “special warranty deed,” which is commonly used in commercial transactions.
A third type of deed is known as “bargain and sale deed.” This kind of deed shows that the grantor has the right to convey title but he or she makes not warranties against any claims. Bargain and sale deeds are commonly used by court officials for properties that are seized by force of law, such as properties that the owners have not paid taxes and then sold at sheriff’s sale.
A “quitclaim” deed is actually not a deed. It is used in most states to disclaim or forfeit the rights of the person, whose name is on the quitclaim deed, to the property. In most states, the deeds must be submitted to the Recorder of Deeds.
Florida Mortgage Broker Newsletter
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