According to CNN, there were more than 6 million homes sold in the United States in 2021 alone.
If you are also searching for a home, you should understand the different types of deeds you may run into.
General warranty deed
A general warranty deed is like a super protective shield for the buyer. When you get this type of deed, the seller promises that the property is free of issues, except for any specifically listed in the deed. The seller commits to defending the buyer in case of any legal disputes regarding the property’s ownership. This means that the buyer can be confident in the integrity of the property title, knowing they have significant protection against potential future claims.
Special warranty deed
A special warranty deed is also a protective deed, but it is a bit more specific. The seller only guarantees that everything was fine during the time they owned the property. They will not take responsibility for anything that might have happened before they owned it.
A quitclaim deed is the least protective for the buyer. The owner transfers rights to you without making promises about the property’s history or condition. This kind of deed is often used in situations where there is a lot of trust between the people involved, like within families.
Bargain and sale deed
A bargain and sale deed offers some protection, but not as much as a general warranty deed. It suggests that the seller can legally sell the property, but it does not guarantee that there are no hidden problems with it.
An executor’s deed usually appears when someone has passed away, and their property is being transferred to someone. The executor of the deceased person’s estate signs it as a way to ensure the property goes to the rightful heir.
In the world of real estate, the type of deed you use can make a big difference. Whether it is the strong protection of a general warranty deed or the more limited coverage of a quitclaim deed, knowing these differences is key when buying or selling property.