A property deed is a critical legal document in a Real Estate transaction in that it serves as the record, for the transfer of ownership from the seller to the buyer. The seller and buyer are referred to as the grantor and grantee, respectively. Deeds are prepared by attorneys, include the legal details of the property in question and your REALTOR® will help you secure the services of a quality, local attorney. The varying types of deeds provide varying levels of legal protection in addition to serving as proof of ownership.
- A General Warranty Deed provides the highest level of protection to the buyer / grantee. The seller / grantor guarantees that he or she holds clear title and has the right to transfer the property.
- In a Special Warranty Deed, the seller / grantor, guarantees the title only against defects which arose during his or her ownership. It does not provide protection for an improper transfer years before they owned the property. Many years ago, there sometimes wasn’t the same attention to detail when transferring property. For example, it’s possible that four adult children inherited a home from a deceased parent. Upon attempting to settle the estate, the heirs may have sold their parents’ home, but it’s possible that one of the siblings didn’t actually sign. This could lead to that person, or someone connected to them, making a claim to rights on that property.
- A Quitclaim Deed offers less protection. The seller / grantor transfers whatever interest they have in the property without making any guarantees pertaining to the title’s validity. This is sometimes used in a divorce scenario when the couple previously had “Joint Tenancy”, which is an arrangement in which more than one person jointly owns 100% of a property, as opposed to “Tenants in Common” which divides ownership by a percentage. An example would be each owning 50%.
- A Bargain and Sale Deed is less common. I happen to have experience with these from my days selling foreclosures. This deed implies that the seller / grantor has the right to transfer the property but does not offer any warranties against encumbrances such as a lien. In many cases, this grantor is a bank or foreclosure company.
After the closing of a transaction in WV, it’s the responsibility of the attorney, or title agent, to record the transfer of ownership with the county. Most will do so within a day or two, but the effective date of transfer is the day the parties signed with the attorney or title agent. The grantee, aka new owner, receives the keys and can move in right away.
Property deeds are vital in establishing and protecting the rights of property ownership and they serve as the official record of ownership transfer. Documents one signs with their REALTORS®, such as a Purchase Agreement, are preliminary, yet still quite vital. You may actually sign numerous documents to include addendums as issues arise during the transaction, but all of these documents, play a role as the attorney or title agent prepares your deed.