A property deed is a written document showing who owns a property. When you purchase a home or land the seller must sign one to transfer ownership rights. In Washington state, deeds are recorded in the county in which the property is located and becomes public record. A deed is a critical component of your real estate transaction, but what kinds of deeds are there? Here is a short list with a brief description.
Statutory Warranty Deed
This type of deed uses a form that is approved by the legislature and is part of the Washington state statute. Sellers aren’t required to use the statutory form, but you might want to insist upon it. This is the seller’s legal promise that he owns the land free and clear and will make things right if there is an issue in the future. A statutory warranty deed will provide you with protection against any problems with the title to your home or land.
Quit Claim Deed
A quit claim is a way to transfer ownership in real property. However, the Grantor is just signing over their ownership interest in a property. This type does not guarantee that the property is free of debt. It also doesn’t guarantee that no one else can claim to own it, or that the person granting it has any actual ownership interest.
Special Warranty Deed
A special warranty deed transfers interest in real property with limited warranties of title. This usually means that the grantor states that the property is free from encumbrances by the grantor, and that they will defend the title. Although, they are not promising to protect against title issues that happened prior to them acquiring the property title.
Personal Representative Deed
A Personal Representative is used when someone passes away while owning interest in real property. With this deed, the estate representative transfers the deceased owner’s interest as authorized by the courts on behalf of the estate.
Bargain and Sale Deed
Commonly used by banks after acquiring a property in foreclosure, and in cases where the grantor is unwilling to make the broad promises of a warranty deed. This legal document transfers interest in real property from one person to another, with limited promises regarding title related to the time that the grantor owned the property.
Provides ownership rights in a property bought at a sheriff’s sale. A sheriff’s sale is done by a sheriff after a failure to pay a judgment, often a mortgage foreclosure. Keep in mind: the debtor generally has the right of redemption until confirmation of the sale is signed by a judge and filed by the court. The redemption period begins when the deed is given.
Deed in Lieu
A deed in lieu of foreclosure is an option which may be available to borrowers who are faced with foreclosure. In this process, the homeowner voluntarily transfers title to the bank to be released from their mortgage obligation.
A fulfillment deed is the type that is given when a real estate contract is paid in full.
For additional questions about deeds, contact a real estate attorney or your local title company. Ready to buy or sell your home? Give us a shout, we are passionate about helping our clients with their real estate needs.