May 8, 2023
Deeds are essential legal documents in the world of real estate that dictate ownership and transfer of property. However, these documents can confuse many people, especially those unfamiliar with the real estate industry. In this article, we will cover the basics of deeds and the different types that exist to help you better understand what deeds are and how they work.
What is a Deed?
In simple terms, a deed is a legal document that transfers ownership of real property from one person to another. It’s a written contract confirming the transfer of property ownership from the seller, the grantor, to the buyer, the grantee. A deed is essential in any real estate transaction, as it provides legal evidence of the transfer of ownership.
Types of Deeds
Different types of deeds exist, and knowing which kind of deeds you need for your particular situation is essential. Here are the five most common types of deeds:
1. Warranty Deed: A warranty deed is a type of deed that provides a guarantee, or warranty, from the seller to the buyer that the seller owns the property being sold and that there are no other claims or liens on the property. This warranty means that if any issues arise with the title after the sale, the seller is legally responsible for resolving them.
2. Quitclaim Deed: A quitclaim deed is a type of deed that transfers whatever interest the seller has in a property to the buyer. Unlike a warranty deed, a quitclaim deed does not provide any warranties or guarantees about the title or ownership of the property. The absence of a warranty means that the seller is not responsible for any issues with the title or ownership that may arise after the sale.
3. Contract for Deed: A contract for deed is an agreement in which the buyer agrees to pay the seller for a specific period, usually several years until the property is fully paid for. The seller retains legal ownership of the property until the buyer has made all the payments. At this point, the seller transfers the ownership to the buyer.
4. Special Warranty Deed: A special warranty deed is a type of deed that provides a warranty only for the time during which the seller owns the property. This means that the seller is only responsible for any issues that arose at the same time they owned the property and not for any problems that may have existed before they acquired it.
5. Personal Representative’s Deed (PR Deed): A Personal Representative’s Deed is used in probate proceedings when an individual dies and leaves property that must be transferred to their heirs or beneficiaries. The PR Deed is used when the executor or personal representative of the deceased person’s estate transfers the property to another person or entity. The PR Deed transfers property ownership from the deceased person to the intended recipient, providing evidence that the probate court authorized the transfer.
Why Are Deeds Important?
Deeds are vital because they provide legal evidence of ownership and property transfer. They protect both the buyer and the seller by ensuring that the transfer of ownership is done correctly and that the new owner is protected from any claims or liens on the property.
How Do I Get a Deed?
If you’re purchasing a property, the seller typically provides the deed. It’s important to review the deed with a real estate professional and an attorney to ensure that it’s the appropriate type of deed for your situation and that there are no issues with the title.
You’ll need to create a new deed to transfer property ownership. Transferring typically involves working with a real estate attorney or title company to draft the appropriate type of deed and then having it signed and notarized by both parties.
If you’re in the Twin Cities area and need assistance with a real estate transaction, TWINCITIES.REALESTATE can help. Our team of experienced real estate professionals can guide you through the entire process, from finding the perfect property to closing the deal. Contact Us today to learn more.
Understanding the different types of deeds and their roles in real estate transactions is essential to protect buyers and sellers. Whether buying or selling a property, you must work with a trusted real estate professional to guide you through the process and ensure all legal requirements are met. With this knowledge and the proper support, you can confidently navigate the complex world of real estate and achieve your goals.
Jerry Arguello
612-250-6287
