In real estate and estate planning, a deed is a legal document that people use to transfer the ownership of a property. However, it’s not that simple. A deed can be of different types, depending on the legal purpose of the ownership transfer, the property’s history, the existence of a property claim, and more.
Here are some common deed types you should know.
Quitclaim Deed
The most common deed type is the quitclaim deed, which is used to transfer property between members of the same family. In addition, you can also transfer property between divorced spouses using a quitclaim deed. Quitclaim happens only between people with a high trust between them, as this deed offers low legal protection to the recipient or grantee.
Deed of Trust
A deed of trust is a part of some estate planning scenarios. In a deed of trust, the grantor or trustor transfers the property to the trustee to benefit a third party, usually called a beneficiary. In estate planning scenarios, many people form a deed of trust to wave off probate charges and ensure easy transfer of their property after they pass away.
Moreover, a deed of trust can also be used to pay off loans, as trustors can transfer the property as security. They will get back the property once they pay the mortgage.
Grant Deed
In simple words, a grant deed transfers the interest in a property from a seller to a buyer in exchange for an agreed price. Unlike a quitclaim deed, a grant deed determines that the buyer is the sole owner of the property. However, the buyer still doesn’t get legal protection from issues like errors in public records and a wrong signature.
General Warranty Deed
Finally, a real estate deed that offers buyers more rights and protection. A general warranty deed has the same purpose as a grant deed. However, it guarantees that the seller owns the property and has complete right to sell it. Moreover, a general warranty deed ensures that a property has no debt, claims, or errors. If any issue with the property arises, a general warranty deed provides legal protection to the buyer.
No matter what type of deed you’re using, you need estate planning legal advice to ensure that the process happens smoothly. At Ledwidge & Associates, our Real Property Law firm NYC guides people in drafting deeds and addressing legal issues. Get in touch with us and try our property lawyer Queens for deed forming and other services.
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