Deed Types

Quitclaim Deed: A quitclaim deed is a term used to describe a document by which a person transfers or quits any interest that person may have in a piece of real property and passes title to another person. The party receiving title to the property acquires only those interests and rights that the grantor previously had. A quitclaim deed releases the grantor’s interest in property without stating the nature of the person’s interest or rights, and with no warranties of ownership or encumbrances on the property. While a quitclaim deed neither warrants nor professes that the grantor’s claim is valid, it prevents the grantor from later claiming any interest in the property. Quitclaim deeds are sometimes used for transfers between family members, gifts, placing personal property into a business entity, or in other special or unusual circumstances.

 

Grant Deed: A grant deed is a term used to describe a document by which a person transfers or quits any interest that the person may have in a piece of real property and passes title to another person and warrants ownership and states the nature of the person’s interest or rights. The grant deed is the most common type of deed used in the selling of property.

 

Beneficiary Deed: A beneficiary deed is a document that expresses an interest in real property, including any debt to a beneficiary. The person who receives the real property in a beneficiary deed is referred to as the beneficiary. A beneficiary deed expressly indicates that the deed is effective on the death of the owner. The transfer of interest to the beneficiary is associated with all conveyances, assignments, contracts, mortgages, deeds of trust, liens, security pledges and other encumbrances made by the owner. A beneficiary deed is an important document. It allows a smooth transfer of ownership between past and present owners.

 

There are also the following. A deed of trust is a transfer of interest in land by a mortgagor-borrower to a mortgagee-lender to secure the payment of the borrower’s debt. A deed in lieu of foreclosure is a written legal instrument in which a mortgagor (the borrower) conveys all interest in a real property to the mortgagee (the lender) to satisfy a loan that is in default and avoid foreclosure proceedings. A warranty deed ensures that the title conveyed over property is full and free from encumbrances. A tax deed is a legal document that provides written proof of ownership of real property acquired from the government at a tax sale. There may also be other state and county specific deed types or filings not covered here, however these are the most common.

 

Chain of Title

Chain of tile is simply the history of the deeds ownerships over time, from the original owner of the property to the present owner. A break in the chain of title occurs when there is a period in which there appears to record owner that precedes the current owner. Thus, if W granted X title and X granted title to Y, but Z shows no title from Y but has name on title from A, there is a break in continuity of title and true ownership may not be demonstrated by the deeds alone.

 

Most deeds must be notarized to be effective. If not recorded, the actual physical deed must be held by the owner to demonstrate ownership and if lost, requires a complex court action to demonstrate good title to the land.