A deed is a legal document used to transfer ownership of real estate. There are several types of deeds including quitclaim, warranty deed, deed of trust, deed in lieu of foreclosure, and grant deeds. Regardless of whether real estate is sold, traded or given away, a deed must be executed to record the transaction.
A real estate deed must include the names of all parties involved in the transaction, along with a legal description of the property. The document must be signed and witnessed by a notary public. Deeds are then recorded through the legal system and become a matter of public record.
A Quitclaim Deed is one of the most common real estate deeds. Quitclaim deeds are used to transfer ownership interest. When people own interest in real estate, they can transfer their portion to another person.
Oftentimes, quitclaim deeds are used to assign ownership rights during divorce. When couples jointly own real estate and later divorce, they can sell or give their real estate interest to their ex-spouse.
A Warranty Deed is used to transfer real estate titles. In essence, warranty deeds provide a guarantee the property has a clean title and declares there are no tax or creditor liens or judgments in place.
There are two types of warranty deeds - General Warranty Deed and Special or Limited Warranty Deed. A General Warranty Deed guarantees the seller legally owns the real estate and has authority to sell it. A Special or Limited Warranty Deed provides limited protection to the buyer and only applies to the time period during which the seller owned the property.
A Deed of Trust is used to provide mortgage lenders security interest in real estate. Some states use trust deeds instead of mortgage notes to secure properties. This type of deed involves three parties: the Borrower, Lender and Trustee.
Using a deed of trust, the lender provides the borrower with necessary funds to purchase real estate. The lender is named as the beneficiary on the legal title. The trustee holds the property title until the mortgage note is paid in full.
Grant deeds are used to transfer ownership of real estate from one person to another. In some jurisdictions, grant deeds are used in place of warranty deeds or quitclaim deeds. In essence, grant deeds are used to guarantee real estate has not been sold to anyone else and the property has no liens or legal restrictions preventing the sale or transfer.
Deed in Lieu of Foreclosure is used by Borrowers who have made arrangements to give their house back to the lender. In essence, this type of deed allows the borrower to transfer all interest of their property to the lender and walk away from their home without enduring the foreclosure process.
If you are facing foreclosure and need to sell your property, contact Simon Volkov today. Simon is a private real estate investor who specializes in helping individuals facing bankruptcy and foreclosure.
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