A deed is a legal document that signifies ownership of a property. The deed includes information about the seller (grantor) and buyer (grantee), as well as a detailed description of the property. When the property is sold, the seller signs the deed over to the buyer.
There are different types of deeds, including:
- Warranty Deed: This is the most comprehensive type of deed, where the seller guarantees that they own the property free and clear, with no encumbrances (liens, easements, or other restrictions) other than those explicitly noted in the deed.
- Special Warranty Deed: This is similar to a warranty deed, but the seller only warrants against problems or encumbrances that occurred during their ownership of the property.
- Quitclaim Deed: This is a more simplified type of deed where the seller doesn’t make any warranties about the state of the property’s title. In essence, the seller is transferring any interest they may have in the property to the buyer but isn’t guaranteeing that they actually have any ownership interest.
Deeds are an integral part of real estate transactions and investments, as they provide a legal basis for property ownership transfer. After the transaction, the deed is usually recorded with the local government, such as the county recorder’s office, to make the change in ownership public record.