Ken Krell - All About Deeds and Titles

All About Deeds and Titles by Ken Krell

When I first began writing this column, people asked me if I would discus such exciting topics as types of deeds and methods of transferring title properties. We’ve gone almost three full years without addressing those subjects. Now it’s time!

Before you turn the page, through, the subject is pretty interesting. The deed is the legal document that transfers title of property to you. Many people aren’t aware that there are different types and qualities of deeds. And by the time you finish this column, you’ll know what they are!

The most common forms of deeds are the special warranty deed, the general warranty deed, the quitclaim deed and the deed of bargain and sale.

If you’ve been paying attention, you may think that the special warranty deed is the best one to have. Wrong!

The special warranty deed carries only one covenant, warranting that the property was not encumbered during the time the present owner owned it (except as noted in the deed).

The general warranty however, does not make that distinction. In fact, it has five basic covenants, including a covenant of quiet enjoyment, a covenant of further assurance (which means that the seller will provide any documentation necessary to make the title good) and covenant of warranty forever, which is a financial guarantee. This is why the general warranty is the best quality deed.

The quit-claim deed carries the least protection of any deed. It merely conveys the grantor’s interests in the property. This is the instrument often used in divorced, when the ex-husband gives his half of the property to the ex-wife.

The bargain and sale deed has no real warranty. It only implies that the grantor holds title to the property.

Okay, now that you know the type of deed to get when you buy property, be aware that your title insurance will assure that you have a good title anyway. And since nearly all lenders require that you have title insurance, you’re covered!

There, now – that wasn’t so bad, was it? We want your suggestion for future posts. Tell me what you want to know and we’ll give you more Truth.

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