Buy Owner Blog

Shanna 23 January 2008 General Information, Tips and Ideas 1,208 views No Comment Print This Post  Email This Post

Getting serious about real estate means getting serious about real estate terms. Do a little research in the field, and you’ll see one dominating truth: a successful investor is an informed investor. Arm yourself with knowledge, and you’ll arm yourself with power.

A variety of terms will arise as you get to know real estate practices. Take deeds, for example. What is a deed? Are there different types of deeds? How can they affect you as a buyer or seller?

WHAT IS A DEED?

Essentially, a deed is a legal document that describes a property and includes the names of the old and new owners; it is signed by the person transferring ownership. It contains information from the plot number in a subdivision to the property lines in a rural locale.

WHAT ARE DEEDS USED FOR?

When property transfers ownership, from one entity to another, the deed is the legal paperwork involved. It passes the property rights to a new owner.

ARE THERE DIFFERENT TYPES OF DEEDS?

Yes: warranty, grant, and quitclaim.

Warranty Deed: The seller/former owner warrants that there are no existing liens on the property in question. It is usually backed up by a title insurance policy. Within this category are general warranty deeds and special warranty deeds; the type depends on the degree to which the guarantor warrants the property.

Grant Deed: A grant deed makes some promises about the property: it’s not been transferred to someone else or encumbered.

Quitclaim Deed: Offering the least security, a quitclaim does not offer a guarantee that the property is owned lien-free. It makes no promises but serves to transfer ownership. This is common when property is transferred without a sale-when a divorce, a death, or some other personal matter is the cause.

Related Reading

• No Related Post