Types Of Warranty Deed
Posted on December 16, 2019 by Nancy Liu | Category: Real Estate
The Warranty Deed is a property ownership document. There are many kinds of Warranty Deed and acronyms. The most common forms are the following three: General Warranty Deed, Special Warranty Deed and Quitclaim Deed.
1. General Warranty Deed
General Warranty Deed is also called Warranty Deed. It is the most comprehensive deed transfer document. In this document, the deed owner proves that he or she has the sole ownership rights to a property and has it forever. If he or she is being sued, or someone casts doubt on the fee simple ownership of a real estate property, the owner can defend his or her rights of the property, or mend the title defects so that the buyer’s rights to the property would not be affected. It does not matter when the lawsuit was initiated, or whether the defects were created by the owner or the previous owner.
2. Special Warranty Deed
Special Warranty Deed is also called Limited Warranty Deed. This kind of deed transfer document only guarantees the owner self obtained the ownership to the property legally and the owner did not do anything to devalue the property. If anyone cast doubts on the property because of the owner’s behavior, the owner can defend his or her rights to the property, but the deed does not warrant that the previous owner did not generate title defects. Usually this kind of warranty deed is used by the government or companies when they transfer the property. For example, when government auctions properties or moving companies sell properties on owner’s behalf, Limited Warranty Deed is used to transfer property. Under this circumstances, the title insurance is especially important.
3. Quitclaim Deed
Quitclaim Deed is a deed that does not have any guarantee and is not a formal document for transferring property. The owner just gives up his “self-claimed” ownership on the property. He or she neither guarantees to be the actual owner, nor defends any problem associated with the property. Quitclaim Dees is often used in transactions that do not have any dispute. For example, married couples transfer property to one another, or transfers occur among family members. If the ownership is Fee Simple, then the property rights transferred through Quitclaim Deed is also Fee Simple. But if the owner does not have ownership, the transfer document made through Quitclaim Deed is a worthless piece of paper. Therefore, it rarely happens in real estate transaction that Quitclaim Deed is the sole document used.
When we talk about “Deed”, readers often ask what a Security Deed is. It is often seen in real estate transaction. Is it a document of deed transfer? In fact, Security Deed is a deed for borrowing loans. It is a necessary document that a buyer has to sign in order to borrow money from banks. It is stated in this document that if the buyer does not pay the mortgage, the bank has the rights to sell the property to others on behalf of the owner in order to pay off the loan. Security Deed is not a deed for transferring property. Rather, it is a lien document.
This article only provides background information. It should not be used as legal advice. If there are any questions, please consult attorney Liu at Liu and Associates. The address of Liu and Associates is
Liu and Associates, P.C., First National Plaza, 3166 Chestnut Drive Connector, Suite 168, Atlanta, GA 30340. Phone: 770-481-0609, Fax: 770-481-0597. Email: info@attorneyliu.com. Website: www.attorneyliu.com
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