TITLE INFORMATION

DIFFERENT DEEDS AND WHAT THEY MEAN

Conditions attached to the acceptance of a deed are known as conditions.  In the transfer of real estate, a deed conveys ownership from the old owner (the grantor) to the new owner (the grantee), and can include various warranties.  The precise name of these warranties differ by jurisdictions.  However, the basic difference between them is the degree to which the grantor warrants the title.

BARGAIN AND SALE DEED: This implies that the grantor has the right to convey title but makes no warranties against encumbrances.  This type of deed is most commonly used by court officials or fiduciaries that hold property by force of law rather than title, such as properties seized for unpaid taxes and sold at sheriff’s sale.

DEED OF TRUST:  This is used as an equivalent to a mortgage.  A trust deed isn’t like the other types of deeds; it’s not used to transfer property directly.  It is commonly used in some states (Washington, for example) to transfer title to land to a “trustee”, usually a trust or title company, which holds the title as security (“in escrow”) for a loan.

ESTOPPEL BY DEED: A type of estoppel that prevents a person from denying the truth of anything that he or she stated in a deed, especially regarding who has valid ownership of the property.  For example, someone who grants a deed to real estate before he actually owns the property can’t later go back and undo the sale for that reason if, say, the new owner strikes oil in the back yard.

GRANT DEED:  This is used for the transfer of property from one person to another person.  Each party is required to sign it.  Then the document must be notarized, or marked accordingly to show that it was signed before a Notary Public.  The reason the document must be notarized is that these transactions are frequently forged.

QUIT CLAIM DEED:  This is a term used in property law to describe a document by which a person (the “grantor”) disclaims any interest the grantor might have in a piece of property, and passes that claim to another person (the “grantee”).

SHERIFF’S DEEDThis is a deed issued to the buyer of property that was sold under court order to pay off a debt.

SPECIAL WARRANTY DEEDThis warranty may be limited only to claims which occur after the grantor obtained the real estate.

STATUTORY WARRANTY DEEDIt warrants title and not the quality or condition of improvements.

TAX DEED SALEThis is for a forced sale, conducted by a governmental agency, or real estate for nonpayment of taxes.  It is one of two methodologies used by governmental agencies to collect delinquent taxes owed on real estate, the other being the tax lien sale.  Real estate taxes are considered delinquent if not paid within a specified period of time.  If the taxes are not paid, after notice is given to the property owner (as well as others holding an interest in the property, such as a mortgage company), the property is sold at public auction to the highest bidder.

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Posted on by cdodge in TITLE INFORMATION

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