By Dan Barney
Deeds are used to provide a written document evidencing the transfer of interests in real property. As discussed last week, a deed can be used to transfer all or part of your interest in real property and can be titled in various ways to accomplish that goal.
A deed can be used to accomplish the following:
a. Transfer of mineral interests – mineral deed.
b. Transfer of surface estate only – deed.
There are various types of deeds that provide varying levels of security for the transfer. For example:
A. Warranty Deed. This deed includes statutory language that provides for warranty of the title by the person transferring the property.
A warranty deed typically will include words similar to “Grantor…warrants the title to the property to be free, clear, and discharged of and from all former grants, charges, taxes, judgments, mortgages, liens, and encumbrances ----.”
B. Quit Claim Deed. A Quit Claim Deed provides no warranty of title. A Quit Claim Deed merely transfers only those interests owned by the grantor.
Typical wording, therefore, includes only the transfer of “all my right, title, interest, estate, and every claim, demand,---.”
It is important to recognize that no one can transfer what he does not own. Thus, the burden lies upon the recipient to verify the actual interests conveyed by a Quit Claim Deed.
C. Special Warranty Deed. If the grantor chooses not to warranty all aspects of title, he may use a Special Warranty Deed that warrants only a part of the interests transferred.
For example, a grantor may warranty only that he has done nothing to impact the quality of title during his period of ownership.
Except for this one feature, the balance of the interests carry no warranty and are in essence like a Quit Claim Deed.
D. Personal Representatives Deed. When property is sold during probate, the personal representative cannot warranty title.
Consequently, a sale in probate is accomplished with a Personal Representatives Deed, which is, in essence, a Quit Claim Deed and normally subject to court review and approval.
Next week, the dynamics of preparing and implementing a deed as well as looking at the various types of ownership available to the recipients of property transferred by deed.