What Is a Deed?
A Deed is any written legal instrument that transfers the title (ownership) of the real estate from the seller to the buyer. It serves as evidence that you have the legal right to the real estate after the purchase is finalized. The individual or entity who owns and sells the real estate by conveying the property to another person is called a grantor. The individual or entity receiving the title to the real estate is called a grantee. Take a look at our Deed Form Templates for your various needs during the borrowing process in the real estate business.
Different Types of Deeds in Real Estate
There are five main types of Deeds that transfer the title to real estate:
- General Warranty Deeds;
- Special Warranty Deeds;
- Bargain and Sale Deeds;
- Quitclaim Deeds;
- Deeds of Trust.
A General Warranty Deed is the most common legal instrument used to transfer real estate property making sure it is clear and free of any encumbrances or defects. A Special Warranty Deed guarantees the title warranty only for the period during which the seller holds the title to the property. A Bargain and Sale Deed simply states that the seller holds the title to the property. A Quitclaim Deed transfers an interest in real estate property without stating the nature of the seller’s rights or interest and does not give any warranties to the buyer. A Deed of Trust lets a third person hold real estate as security for a loan between a seller and a buyer until the purchase price is fully paid.
Generally, these forms are short and consist of only a single page. However, for it to have legal force, you need to include a clear identification of the grantor and the grantee and sufficient description of the real estate to be transferred. The document must be signed by the grantor and legally delivered to and accepted by the grantee.