Difference's in Deed types
Warranty Deed / General Warranty Deed / Grant Deed
A warranty deed is a type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate, and more importantly has the right to sell it to you. This guarantee is not only limited to the time the grantor (seller) owned the property - it extends back to the property's origins.
When the grantor (seller) offers a warranty deed they are making certain and specific guarantees to the buyer. Which usually includes these three basic covenants.
the covenant of seisen - is the seller's guarantee that he or she actually owns the property that they are selling and that they have the right to sell it.
the covenant against encumbrances - is the seller's guarantee that the property is free and clear of any encumbrances--e.g., tax liens, mortgage liens, etc.
covenant of quiet enjoyment - is the seller's guarantee that if anyone shows up after the sale to challenge the buyer's rights to the property the seller will defend the buyer's rights.
The buyer and seller, of course, are free to add to or to omit some of these warranties; however, these warranties are what a buyer should expect in a "general warranty deed."
Note: A "Special Warranty Deed" only gives guarantees for the time period that the current grantor (seller) legally possessed the land.
Quit Claim Deed
You need to be aware that a quit claim deed comes with none of the guarantees of a warranty deed. To put it simply, the seller is telling the buyer "that they disclaim any interest the grantor might have in a piece of real property, and passes that claim to another person (the grantee)."
A quitclaim deed neither warrants nor professes that the grantor's claim is actually valid. Of all the deed types, the quit-claim would be the least desireable.
If accepting a quit claim deed is your only option, additional due diligence should be performed.
*The content of this guide is intended for informational purposes only. If you need specific legal advice, please contact an attorney licensed in the relevant jurisdiction.
