The two most common types of deeds in use are the standard warranty deed and the quitclaim deed. While both are effective, there are important differences that should be understood.
Warranty deeds use the word "warrants" in the first paragraph of the deed. This warrants that the seller has good title with no other adverse claims against the title. This protects the buyer in that the seller is liable for the cost of removing any adverse claim to title. This type of deed is most commonly used when some one is buying or selling real estate. It offers the greatest protection to the buyer and is what title insurance companies require to issue a policy.
A quitclaim deed uses the word "quitclaims" and only conveys the interest the seller holds. As a practical matter, most people selling their home have a good and clean title. This type of deed is often used when adding or removing family members from a home. In that case, the parties involved know the title is good and simply want an efficient way to transfer their home among family.
For more information on real estate legal issues, please see my website at www.maesenlawfirm.com
Ryan Maesen
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