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Warranty Deed: Legal doc that conveys clear title

When you sell off property or transfer it to someone, a warranty deed is what you need to convey the title. The deed guarantees that as a grantor or seller, you hold title clear and free of liens and have the right to transfer/sell it to the grantee/buyer.

What are the types of warranty deed?

There are 2 types of warranty deed used for title transfer. These are given below:

General Warranty Deed:
The legal document guarantees that the grantor (or seller) is the legal owner of the property and no other person has an interest in the same property unless otherwise stated on the deed.

The guarantee offered through the General Deed is not limited to the time period for which the grantor owned property. This implies that the grantor can be held liable for title problems existing prior to as well as during his ownership.

How it protects the grantee…

The General Deed includes 6 forms of covenants (agreements between the parties involved) divided into the following categories:
1. Present Covenant: This represents the grantor's promise that he has legal hold over the title and possession and can claim both when required. The grantor's promise that the title is clear and free of lien is also a part of this covenant.
2. Future Covenant: This includes the grantor's promise to protect the grantee against any other person claiming title. Secondly, the covenant represents the grantor's promise to provide legal docs required to prove that the title passed on is valid. However, not all states (eg. Ohio) recognize the second covenant.

When grantor is held liable…

If the grantee finds out that someone else owns interest in property, which is not disclosed in the deed, then he has the right to sue the grantor. Besides, if there is a cloud or defect in property-title such as tax lien, mortgage claim, judgment etc, then the grantee or buyer can hold the grantor or seller liable.

Special or Limited Warranty Deed:
The Special/Limited or Statutory Warranty Deed does not offer as much protection as the General deed.

How it protects the grantee…

The deed conveys grantor's title to the grantee and protects the latter against title defects or claims arising during the period of ownership of the grantee and not prior to his ownership (unlike the general deed). The grantor warrants that there are no liens on the property unless otherwise stated on the deed.

The Special Warranty Deed allows the grantee or buyer to ask the grantor for compensation to fix problems with the property which actually originated during the grantor's ownership in the property. And this may help the grantee save a lot of money in case he can prove that the problem existed from the time of grantor's ownership.

How do you make the deed valid?

The deed should provide the legal description of the property to be transferred. It should be drafted as per the laws in the state where the property is located. Moreover, the deed should be signed and witnessed by legal professionals. Check out a sample form given below in the Related References section.

In case of a buying/selling transaction, the deed is delivered to the buyer at the time of closing. The buyer then records the deed at the County Recorder's office. The deed should be recorded within a specific period as required by the state laws so that it can be considered as valid.

A Warranty Deed offers greater protection than quitclaim deed and others. So, whether you're selling property or transferring it to a trust, the deed can serve you best. When used to transfer title while selling off property, the buyer should supplement its claims by purchasing title insurance policy. Both the deed and the policy can help protect the lender and the buyer against disputes on ownership or liens on property.

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monty

Guest

0.10 Dollars($)

Post subject:

My wife wants to add my name on a title to her home. I think that all we need to do is record a quit claim deed from my wife to my wife and me. What are your thoughts?

jerry

Moderator

Joined: 17 Oct 2005
Posts: 1838
Location: MICHIGAN

280.70 Dollars($)

Post subject: RE:

Hi, First of all let me inform you that a deed of trust is not a deed of conveyance and most of the title companies will need a warranty deed from your wife to you and your wife. And secondly you should confirm from the title company that the title insurance policy is not affected by your acquisition of an interest in the property. Thanks, Jerry

amsangab

Guest

0.10 Dollars($)

Post subject: Transfer of property

My mom want to transfer her home to me and my brother. What is the best way to go without the taxes being affected and will we (grantees) be able to claim the property on our taxes?

Andrew

Guest

0.10 Dollars($)

Post subject:

Hi, I think the property transfer to you and your brother's name will allow you to make such a claim. Andrew

Caron

Moderator

Joined: 19 Jul 2005
Posts: 1562
Location: florida

266.68 Dollars($)

Post subject: RE: Transfer property

Hi, Your mom can try out with a warranty deed which will transfer the title to you ensuring that there is no debt against it. For this deed, you may have to carry out a title search to find out whether the title is free from any lien. A title company or escrow company will be able to guide you in this matter. Regarding the taxes, consult a tax advisor for clarifying your doubt. Thanks, Caron.

Lou

Guest

0.10 Dollars($)

Post subject: property deed

My son bought a house and now he does not want it, he would like for my husband to take over the payments. Is this possible and if it is, could the house be put in our name instead of our sons?

Caron

Moderator

Joined: 19 Jul 2005
Posts: 1562
Location: florida

266.68 Dollars($)

Post subject: RE:

Hi Lou, A similar query has been answered at http://www.mortgagefit.com/know-how/about5090.html . Please go through it. Thanks, Caron.

Herminia

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0.10 Dollars($)

Post subject: quit claim deed

My sister has terminal cancer. She is on Medicaid. I loaned her the money to pay off her mortgage. Can we use a quit claim deed as collateral in the event she is unable to pay back the loan? If a quit claim deed exists, can Medicaid attach the home should she owe Medicaid money for long term care?

Veolin

Guest

0.10 Dollars($)

Post subject:

Hi Herminia,

Sorry to hear about your sister's cancer.

Quote:

Can we use a quit claim deed as collateral in the event she is unable to pay back the loan?

If she is unable to pay back the loan you had given her for payment of the mortgage, you can ask her to transfer the property interest in your name by way of a quit claim deed.

Veolin

helping_user

Joined: 31 Mar 2006
Posts: 815
Location: Hawaii

155.15 Dollars($)

Post subject: RE: Can Medicaid attach home

Hi Herminia, If your sister receives medical services paid through Medicaid on or after her 55th birthday, or if she resides in a medical institution permanently, then only Medicaid can attach the house. This implies that Medicaid can recover the cost of medical services from the assets in the home upon your sister's death. So, if your sister is 55 years old or above, the quit claim as collateral has no value as the Medicaid company if required can claim the house. But if she is under the given age limit, then the quit claim can be effective. Thanks

Red

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Post subject: Quit Claims Deed

My sister asked me to remove her from our home deed. She may have some medical bills due to an illness in the near future. Can they take my home if she is not on the title now? I do have a lein on the home but it is only in my name. We had a Quit Claims Deed fixed, will this protect me if not what should I do?

ren23@gmail.com

Guest

0.10 Dollars($)

Post subject:

Quote:

Can they take my home if she is not on the title now?

As the home has been quit claimed and your sister is now not on the title of the home, a lien will not be placed on the home for the debts that are going to arise in the future.

Samantha

Community Mentor

Joined: 16 Sep 2005
Posts: 1606
Location: MASSACHUSETTS

150.38 Dollars($)

Post subject: RE: Save home from liens

Hi Red,

Welcome to the forums.

I guess you want to know whether your property will be taken away in order to retrieve the unpaid medical bills. Well, I don't think it will affect your home in any way because the bills are not secured by the property. Moreover, your sister is not on the title. So, those providing the medical treatment have to retrieve the dues from your sister itself.

Quote:

I do have a lein on the home but it is only in my name.

Regarding the lien on your home, you are responsible for it and you need to clear it within the allotted time period. You may lose your home in case you are not able to fulfill the obligations required to clear the lien.

Quote:

We had a Quit Claims Deed fixed, will this protect me

The quit claim can protect you in the sense that it mentions the transfer of title to you. So, the persons concerned will know that you are on the title. I mean you can show them a copy of the deed as a proof of the transfer.

Quote:

if not what should I do?

I think you need to talk to your sister explaining her that she should pay down the bills or else she should be in trouble later on. Moreover, keeping the dues unpaid will have a serious affect on her credit score.

Hope I could help you to some extent.

God bless you

Samantha.
_________________
Know how to compare lenders with mortgage booklet

vic

Guest

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Post subject: Quick claim Deed

I want to buy a bank owned property they will only sell it on quik claim deed. They will not give a warranty deed. Iwant to know what are the risks involved about purchasing ? Do bank own properties not give Warranty deeds ?