A deed is a legal document that confirms and passes the property from one party to another. However, when it comes to real estate, there are different types of deeds. It is important to understand the purpose of each. Here are 6 deeds that you should look out for when investing in real estate.
Warranty Deed
This type of deed is largely used for residential sales. A warranty deed acts as a guarantee to the buyer, that shows the seller has all right to sell the property and that the property is free from debts and liabilities.
Grant Deed
To transfer the property from the seller to the buyer in exchange for an agreed-upon price, a grant deed is used.
Fiduciary Deed
This type of deed is used when the grantor is a fiduciary such as an agent to transfer the land. A fiduciary deed is a proof that the agent has the power and authority as entrusted.
Trust Deeds
A trust deed is used to transfer the property to a trustee to secure an obligation such as a mortgage. The trust deed proves that the trustee has the right to sell the property in situations where default is made an obligation.
Quitclaim Deed
This type of deed is most commonly used among family members or those you are well acquainted with. It allows the transfer of property rights and claims from one party to the other.
The Bargain and Sale Deed
This deed states that the grantor holds the title of the property, but doesn’t state whether the property is free of liens. This type of deed is mostly used in situations where the history of the property might be unclear.
