Your home search was successful and you have made it to the homebuying part of the process. With all of the stress that comes with searching for a new home now it is time to close and that can bring a new set of stresses, especially if you don’t understand all the terms that are being used throughout the process. At Ohio Real Title, we pride ourselves on making the closing successful, stress-free, and as convenient as possible. We do this by clearly communicating and answering any questions you may have. One question we hear often is “What type of deed do I have and what does that mean?”
A deed is a legal document that transfers ownership of real estate from one person to another. There are many different types of deeds, each with its own set of benefits and drawbacks. The most common types of real estate deeds are:
1. General warranty deed
A general warranty deed is the most comprehensive type of real estate deed. It guarantees that the grantor (seller) has good title to the property and that the property is free from any defects, such as liens or easements.
2. Limited warranty deed
A limited warranty deed is a type of deed guarantees that the grantor has good title to the property from the time they acquired it, but it does not guarantee that the property is free from defects that existed before the grantor’s ownership.
3. Quitclaim deed
A quitclaim deed is a type of deed gives the grantee (buyer) the least amount of protection. It does not guarantee that the grantor has good title to the property or that the property is free from defects.
The type of deed that is used in a real estate transaction will depend on the specific circumstances. For example, a general warranty deed is typically used in a purchase and sale transaction, while a quitclaim deed may be used when transferring property between family members.
If you are unsure, consult with an attorney to determine the best type of deed for your specific needs.
For more information about the home-buying process, including Why Do I Need Title Insurance? visit our blog.
