A legal deed is an act of transferring real property or establishing a binding obligation, from one party to another. Having control of real property can be beneficial, but it also comes with duties and responsibilities. Each type of deed has its own rules, regulations, and procedures that must be followed in order to properly establish the intended transfer of rights. There are many different types of legal deeds that can be used in today’s modern world, each one serves its own specific purpose. In other words, different types of legal deeds correspond to different needs you might have, and they can be a very useful tool to help you accomplish what it is that you want.
1. Quitclaim Deeds
A quitclaim deed transfers to a new owner any interest the person signing has in real property that he or she does not want. Normally, a Quitclaim deed is used when someone transfers or sells their property interest to another person. The person signing it acknowledges that he/she has no claim on rights to the property and will not receive any benefits associated with it, but also can be used to clear up ambiguities or difficulties with legal descriptions. It’s a specific type of contract, and as with any contract, should be written in plain language, clearly conveying the intent of both parties.
There are also certain formalities required in order to make sure it is legally binding, so it’s important you find out what they are. These will depend on the state laws where the property is located. However, as a general rule, you may be required to place it in the public records, which is usually accomplished by recording it with the County Recorder. Additionally, the person transferring property, sometimes called the Grantor, should provide a legal description. This can be done by including a metes and bounds legal description or it could simply be a street address combined with city and state.
2. A Warranty Deed
A warranty deed is issued when there is no co-owner involved and the party transferring interest to another person believes the title to that property is free of any problems. It’s normally used when you are selling your property, not transferring it, though it can be used to transfer title in other situations as well. If there are co-owners involved, one may sign a warranty deed and then take an assignment or certificate of ownership from the other owner/s. Since this is related to a major financial transaction, it’s important to understand what you are signing and what you are promising. This is where having an attorney review the deed before it is signed can be very helpful to ensure that all obligations are clear. An example of this is when a husband and wife are both on the title to their home, then get divorced. In order to sell the property, the “minority” co-owner must sign an assignment of interest before a warranty deed can be issued in their name.
It should also be noted that while a warranty deed may guarantee clear title, it doesn’t indicate the condition of the building on the property. The property must be checked out by a title agent, which is someone who researches titles to properties in order to establish clear ownership, but this can vary depending on what state you are located in that will determine whether or not they are required to do so before the sale.
3. An Affidavit Deed
An affidavit deed serves to transfer property but differs from other types of deeds in that it does not necessarily require delivery of or possession by the grantee. In simple terms, you might want to use this type of deed if you have a problem with your property, such as a flooding issue, or other issues that disqualify you from getting a loan. The usefulness of this type of deed is that it allows the person to transfer title without physically having the property and without having to be completely free and clear of any liens. The person signing it has the right to sell and convey the property in question. However, you must be able to prove this, hence why affidavits contain statements known as “verifications.” Verification means someone making a statement under oath, and affidavits are typically used in situations where the grantee cannot obtain possession of the property because it has been destroyed, or is physically inaccessible.
4. Grant Deeds
Grant deeds are most often used in a court order when someone is giving up their claim to a property. In situations where co-ownership has been dissolved, the person with the majority ownership interest may file for an Order of Partition from the court with jurisdiction over the area. Once this order is issued, it will include a valuation of both the property and the interest being given up. It will also include a delineation of what each party is entitled to, which means it may be used instead of a warranty deed in a situation where a lender has been called upon due to foreclosure proceedings.
It’s useful in situations where probate has been opened after the grantor’s death and there is a question over who gets certain pieces of property. In the case where multiple heirs are involved, it evens out what each one will get in cases such as this. It can also be used when a living person wants to transfer partial interest in a piece of property but not all interest, or it may be used in situations where you want to craft a settlement agreement with an ex-spouse.
5. Trustee Deeds
A trustee deed is one that’s typically used in situations where a home goes into foreclosure. After the foreclosure proceedings are complete, the foreclosing party will typically want to transfer the title back to its original owner, which is when it would use this type of deed. The person giving up ownership would need to sign the deed before transferring the title back to the original owner. This type of deed is also most typically used in joint tenancy breakups, which means it would need two people agreeing to the transfer. It’s incredibly useful in these situations because it reduces the risk that someone could challenge who gets what in an already difficult situation.
While there are many other types of deeds that could be discussed, the five types of deeds mentioned above are the most common, and they can be hugely beneficial in terms of giving both parties complete security over their interests involving property transfers. As with any legal document, it’s important that you have them reviewed by an attorney prior to signing. This is the only surefire way to know for certain what rights and responsibilities are being transferred both during and after the property transfer process.
