In a residential real estate purchase closing, the buyer takes title to the property by virtue of a document known as a deed. The deed transfers (or conveys) the ownership of the property from the seller to the buyer once the document is executed properly. The title company then records the deed with the county recorder as notice to the public that the property has transferred hands. There are several different types of deeds, and it is important to know what kind of deed you will need.
A deed is a one- or two-page document that conveys property ownership. The deed must state who the grantor (seller) is and who the grantee (buyer) is. It must legally describe the property as surveyed by a registered land surveyor. The deed must state the consideration paid for the property. It must be executed properly by the seller, who must be of legal age and sound mind, within the state laws where the property is being signed, and it must be properly delivered to the buyer. A deed without one of these key elements is known as a title defect, and your deed may be considered invalid.
Below is a table of the five most common deeds used in a residential real estate transaction. The conveyance of real property and holding title to real property can be more complicated it appears. For this reason, it is advised that you seek legal counsel from a qualified real estate attorney before taking title to any real property.
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| General Warranty Deed* |
Entire (100%) by the seller.
If there is more than one grantee (besides a husband and wife), this is considered tenancy in common. Each party owns an equal interest unless otherwise stated. A tenants in common interest can be sold or devised in a will. |
Seller warrants that he/she has good title and will warrant and defend title. |
General Warranty Deed
(with Survivorship Rights) |
Couples who hold title to property as unmarried, but wish to have full rights of survivorship. Each party has a full ownership interest in the property. The property will pass instantly to the survivor upon the death of the other without probate. Conveyance by one party without the other breaks the joint tenancy. |
Seller warrants that he/she has good title and will warrant and defend title. |
| Special Warranty Deed |
Used in special circumstances, such as the transfer of property within a family or because of a divorce. |
No provision for warranties or defending title. |
| Quit Claim |
Used in special circumstances, such as the transfer of property within a family or because of a divorce. |
No provision for warranties or defending title by grantor. |
| Joint and Survivorship |
Most married couples hold title to property in both names as tenants by the entirety. Each party has a full ownership interest in the property. The property will pass instantly to the surviving spouse upon the death of the other spouse without probate. Conveyance by one party without the other breaks the joint tenancy, or it may not be conveyed at all if it is considered community property. |
Provision made for warranty of title by grantor. |
| Certificate of Transfer |
Used to transfer interest of a deceased party to a spouse or family member when the deed to title does not have survivorship rights and/or there is no will. |
No provisions for warranty of title by survivor grantor. |
| Executor's or Administrator's |
Used to transfer interest of a deceased party when devised in a will. |
May or may not contain warranty of title. |
| Sheriff's Deed |
Used to transfer property in a foreclosure action. |
Foreclosure actions wipe out all interest of all prior owners and lien holders. Deed may or may contain warranty of title. |
| *A single buyer generally takes title in his or her name alone. At a later date, a new deed may be created for tenancy in common or tenancy by the entirety if he/she wishes. |
