When a person purchases real estate, he or she will receive a deed. A deed is a legal document that transfers the ownership of the property from the seller to the buyer. In the transaction, the seller is called the grantor and the buyer is called the grantee.
The deed must be in writing, must identify the grantor and the grantee and must include an adequate description of the property. Also, the grantor is required to sign the deed and deliver it to the grantee or the grantee’s representative. The grantee can either accept it or reject it.
The majority of properties are transferred by individuals or businesses. However, deeds can also be executed by a court order or other legal proceeding.
A warranty deed provides the grantee with the highest level of protection. The grantor makes covenants and warranties to the grantee, including that he or she owns the property and can legally convey it, that the property is free of liens or encumbrances, that the title is not defective and that the grantor will provide necessary documents for the title.
A quitclaim deed provides the grantee with the least amount of protection. The grantor does not provide any warranties about the quality of the title. This deed only conveys the interest the grantor has in the property and may be used when the grantor does not want liability or isn’t aware of whether the title has any defects.
There are also special purpose deeds like an administrator’s deed, used when a person dies without a will, an executor deed used for an estate’s executor to convey title and several others.
An experienced real estate attorney can offer advice and additional information about the right type of deed to use.