Deed
Candlefocus EditorThere are three main deed types and each one is defined by the level of guarantees it provides: the grant deed, the warranty deed, and the quitclaim deed.
The grant deed is the most common and provides the grantee with a guarantee from the grantor that he or she will not face any challenges regarding the title or ownership of the asset. In some jurisdictions, a grant deed also gives the grantee assurance that the grantor has clear and valid title over the property. Depending on your jurisdiction, a grant deed may also include the tax value of the property, the amount of taxes due, and the seller’s guarantee that the seller has paid any dues up to the date of the deed.
The warranty deed, which is most common in the U.S., provides the grantee with the highest degree of protection. Here, the grantor not only guarantees that they have clear and valid title over the asset, but also warrants against any defects arising in the title including any third party claims.
Finally, the quitclaim deed is the least secure of the three deed types and only transfers whatever the grantor may or may not own. This type of deed does not guarantee clear and valid title or protect the grantee from any potential disputes and provides absolutely no assurance of any kind.
Deeds are an essential part of the legal process when transferring assets. They are important documents that grant title and ownership rights to grantees and help protect them from legal challenges. The deed that is appropriate for the asset transfer must be chosen carefully, as it affects the grantee’s level of security, protection, and assurance with respect to the asset in question.