Conveyancing

A deed can be defined as a legal way of transferring a title to real estate from one person to another. However, patents, commissions and power of attorney are also common deeds. There are therefore, different types of deeds for different purposes.

A real estate deed is different from a real estate title. A real estate deed is a judicial document which conveys or assigns a title to a property. On the other hand, a real estate title is a judicial document that just proves the ownership of a property. However, both of these are required during the real estate transaction. The legal real estate title has to be presented before transferring or conveying the deed to some other person.

You must get the deed thoroughly checked by a professional real estate attorney before signing it. There are different types of real estate contract for deeds.

General warranty deed: In this type of deed, the seller guarantees that he or she owns the title and has the full rights to sell it. This guarantee covers the time when the particular property originated.

Some elements of a general warranty deed are as follows:

* The seller assures that there are no hidden debts or holds which are present on the property.

* The seller confirms that he or she is the sole owner of the property.

* The seller guarantees to pay for any future mortgages or losses found on the property in future.

* This deed may not prove helpful in the long run as the seller may be deceased by that time.

Special warranty deed: This deed gives the buyer two different guarantees from the grantor (seller). The first one is the title from the seller. The second one is that the seller did not saddle the property by any means during his/her ownership. Bargain and sale deed: In this deed, the seller offers no warranties regarding title to the purchaser. But, the seller is implied to have or had a keen interest in the property.

Quit claim deed: A Quit claim deed is generally used in the case of a divorce. If a married person is the only owner of the property, and then he or she separates from the spouse, a quit claim deed has to be signed by the owner's spouse to ensure that he or she cannot claim that property in the future.

In most general cases, the requirements of a basic deed include the following:

* The seller has complete and legal right to sell the property.

* An acknowledged buyer.

* A clause to the grantee (buyer), from the grantor (seller) stating the conveying of the property.

* Legal statement of the property.

A Legal seal should be affixed to it. Some jurisdictions need the deed to be acknowledged before a notary along with the presence of witness(es). In some countries, the signature of the grantor is required in place of the seal.

These are the most common forms of real estate deeds.

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