Choosing The Right Real Estate Deed
Submitted by: Hellen Perry
A real estate deed is defined as a legal instrument which can be used for the purpose of transferring rights related to a property from the seller to the buyer. The most basic form of real estate deed contains three most important things namely the description of the property in question, the names of the concerned parties and the signature of the seller or the Grantor. There are a lot of different kinds of real estate deeds, namely Grant deed, Quitclaim deed, Warranty deed, bargain and sale deed, etc. So sometimes it can be very confusing as to which to select and which not to select.
Choosing the right real estate deed is important and so one should keep in mind a lot of factors and think twice before opting for a deed. As important as it is, the real estate deed is actually an instrument which a lot of people are ignorant about. No one frames real estate deeds and hangs them on their walls for display purposes. In fact, if you were to ask any home owner about the whereabouts of their real estate deeds then you would probably get a funny stare back, because the truth is that no one really cares about this deed until the time they need to find one or sign one.
Property deeds can be quite a mind-boggling affair if this is your first time obtaining such an instrument, irrespective of whether you are a buyer or a seller. As mentioned above, there are so many different types of real estate deeds that at times it can become difficult to tell them apart and to find out the perfect or the right real estate deed. While all of these different kinds of deeds may be doing the job in their own ways, but the important question is which one would be most suitable for you? In order to answer that question, you will need to take a closer look at the three most common types of real estate deeds and then make your own decision.
The first one is the General Warranty Deed which is also known as the best friend of any property buyer or Grantee. This deed is best for you if you are looking to purchase real estate. When you sign this deed, the Grantor or the seller would be essentially making a promise of transferring a nice and clear property title to you. This is good because in case any liens against the property s title or nasty debts arise later then you won t be the one forking out the cash but the seller would be the one doing it in order to take care of all these problems.
The number one reason as to why you should choose this deed is because in this type of deed, the promise does not only extent to the time period of the seller s ownership but all the way back to the entire history of the real estate property. So without a doubt, the General Warranty deed is your golden ticket to a stress-free, trouble-free and hassle-free ownership. The general warranty deed after all, turns out to be not so general – in fact it is really special.
The second option to be considered here pertains to the option of going for the Special Warranty real estate deed. The General Warranty deed was a more favorable and better option for the buyer, but if you are the seller then you might want to go for a deed which is more favorable for you and in this case, it would be the Special Warranty deed. This deed attempts to create a fair balance between the interests of the buyer as well as the seller. In this kind of deed, you only have to promise the buyer that your property is free from all nasty problems which could arise in the future, but this promise applies only to the extent of the time period of your ownership.
This means that unlike the General Warranty Deed, you do not have to warrant for the property all the way back to its history. So as far as you are concerned, you do not need to deal with problems or hassles arising because of the previous owners, the buyer will have to take care of that. So that is why as a seller, the Special Warranty deed would work in your favor and it would be wise to go for this deed. In other words, this deed is the property seller s best friend just like how the General Warranty Deed is the property buyer s best friend.
The third option to consider would be the bargain and sale deed. This one again is most beneficial for the seller and so that is why if you are selling your property and you require a real estate deed then you can consider going for the bargain and sale deed. Out of the three real estate deeds, i.e. the General Warranty deed, the Special Warranty deed and the bargain and sale deed, the last one is the best for sellers because it offers them minimum responsibility and maximum protection. So if you can get your buyers to agree to go with this deed, then it would be great.
Once you manage to ink or finalize a bargain and sale real estate deed with your buyer then you are basically washing your hands off the whole matter. So this means that in case something is wrong with the title of the property then the buyer would be dealing with it and not you. This is why this type of deed appears most often in case of foreclosed properties and in tax sales.
Irrespective of whether you are a seller or a buyer, do not go for real estate deed which is not going to be beneficial for you. You need to make sure that the real estate deed you are going for is worth your time and money so that you will not have to deal with serious problems later down the road. Also, make sure that your real estate deed uses correct legal wordings.
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