When you purchase a property, you’re not just buying a physical structure or a piece of land — you’re also acquiring a legal title to that property, typically documented in a deed. 

Understanding the different types of deeds and their legal implications is crucial for any real estate transaction. This knowledge helps ensure your ownership is clear and protected. Read on to learn more about deeds, the various types, and how to handle deed-related issues.

Types of Deeds

A deed is a legal document that transfers ownership of real estate from one party to another. It details the rights and obligations associated with the property. The type of deed you receive determines the level of protection and recourse you have if issues with the title arise. 

There are several types of deeds. Some that are most often used include:

General warranty deed – This deed provides the highest level of protection to the buyer. The seller guarantees that the property is free of any encumbrances and that they hold a clear title to the property.

The seller is legally responsible for any issues that arise concerning the property’s title, even if the problem originated before they owned the property. This includes any undisclosed encumbrances, claims, or liens.

Special warranty deed – This deed offers similar protection to the buyer as a general warranty deed, but only for the period during which the seller owned the property.

The seller warrants against any defects or claims that arose during their ownership but not for any issues that predate their ownership.

Quitclaim deed – This deed provides the least amount of protection. The seller transfers any interest they have in the property without making any warranties about the validity of the title.

This type of deed is often used to transfer property between family members or to clear up a title issue.

Handling Deed-Related Issues

Deed-related issues can be complex and daunting, but addressing them promptly and effectively is crucial to ensuring a smooth real estate transaction. Here are several steps to handle common deed-related problems:

Conduct a thorough title search – A title search is typically conducted by a title company or real estate attorney. It identifies any existing encumbrances, claims, or defects in the property title. A title search involves examining public records to trace ownership history and detect any liens, easements, or other restrictions that may affect the property. 

Obtain owner’s title insurance – Owner’s title insurance protects against potential future claims or title defects that were not discovered during the title search. It provides financial protection and legal defense to the homeowner in case of disputes over property ownership or encumbrances. 

Resolve identified title defects  – Title defects can include undisclosed liens, boundary disputes, errors in public records, and claims from previous owners, among other factors. They may be resolved in several ways, including filing documents (to correct mistakes in public records), negotiation, mediation, or legal processes.

Consult a real estate attorney – If title defects are complex or if you encounter any legal uncertainties, it’s advisable to seek the expertise of a real estate attorney. An attorney can provide legal advice, represent your interests in negotiations, and ensure all legal documentation is accurate and properly filed.

Understanding deeds is an important aspect of real estate transactions. To learn more, contact the team at Linear Title & Escrow.