When selling or buying a property, it requires a legal instrument called property deeds or grant deeds. The instrument is used to assign or transfer ownership of real property from its grantor to the grantee. The grantor is the one selling the property while the grantee is the one buying it.
The commonly used property deed in transferring title is the grant deed. For the buyer's protection, the deed is notarized to ensure that the seller is the person who signed the deed, though it is not a requirement to make the transaction valid. The grant deed contains two guarantees, which states that the property has not been sold to anybody and is not burdened by any problem, which was not disclosed by the grantor to its grantee. The important elements in the grant deed are the written documents, the granting clause, the names of the grantors and the grantees, detailed description of the property being transferred, the execution, delivery and acceptance and the grantor's signature. All other deeds involving grantors and grantees are classified as grant deeds.
- Warranty Deeds - This legal document is a type of grant deed but contains three guarantees. The additional guarantee enclosed in this deed is the warranty that the grantor will defend the title against the claims of any other person of the property being transferred. This additional guarantee ensures that the title or property is free from any defects that may affect the transfer of the title.
- Quitclaim Deeds - This legal document is used to ensure that the grantor will no longer claim the property being sold. This kind of deed is commonly used during a divorce. The spouse who is not in the title of the property is asked to sign the quitclaim deed to ensure that he may not lay claim to the property later.
- Fiduciary Deeds - This legal document is used to transfer property when the grantor is a fiduciary that acts in his official capacity. A trustee, guardian, conservator or executor warranties in this legal instrument that he is acting in his appointed capacity.
- Trust Deeds - This legal instrument transfers the property to a trustee. The trustee's responsibility is to secure an obligation and when such obligation is at default, the trustee has the power to sell the property.
Other types of deeds are:
- Tax Deed - This deed is used to transfer the title to the buyer when the property is sold to pay back property taxes.
- Gift Deeds - This deed is used to transfer the title of the property without payment of money. This transfer of title normally occurs among people who are members of the family.
- Deed-in-Lieu of Foreclosure - This deed is used to avoid foreclosure when a seller is not on time in his payment to the lenders.
A grant deed states that the property does not bear any hindrances, has not been sold to anyone else as revealed to the grantee. It promises that the grantor has the lawful right to sell the possessions listed in the grant deed. Deeds are important with legal documents that affect ownership interests and rights in a property. The grantee should ensure that the deeds are in proper order prior to buying a property so as not to encounter problems in claiming his right to the property.