Quitclaim Deed - the grantor “quits” any claim to the property and simply passes it to the grantee. It only transfers whatever interest the grantor has in the property and does not guarantee the grantor’s ownership. In other words, it offers no warranty to the grantee.

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Gift Deed - allows the grantor to transfer money or property as a gift without receiving consideration (money) in return. They are commonly seen in estate planning.

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Warranty Deed - assures that the grantor has clear title to a parcel of real estate and has the full legal right to transfer (sell) it to the grantee. It also guarantees that the property is free and clear of any claims, debts, liens, or other encumbrances. Because of these strong guarantees, a warranty deed is the most commonly used type of deed in the US.

 

General Warranty Deed - Typically used in residential real estate transactions, a general warranty deed guarantees that the seller has the full legal right to sell the property and that the property is free and clear of any claims, debts, liens, or other encumbrances throughout the property’s history.

 

Special Warranty Deed - Similar to a general warranty deed, a special warranty deed (also referred to as a limited warranty deed) assures the grantee that the grantor is the legal owner of the property and that it was not encumbered during their ownership.

 

Grant Deed - A grant deed guarantees that:

• The grantor hasn’t previously transferred the property to someone else, and

• The property wasn’t burdened with debts or legal claims while under the grantor’s ownership, except for those specifically mentioned in the deed.

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Mortgage Deed - is a document signed between a homeowner and a bank or lending institution to secure a loan. More specifically, it secures the property as collateral for a loan — meaning a “mortgage payment” is paid towards a loan debt, with the house serving as security in the event of a default.

 

Deed of Trust - also known as a trust deed, establishes a legal arrangement involving a borrower, lender, and trustee (typically a title company). In this arrangement, the trustee holds the property title in trust for the lender until the borrower fully repays the loan. Upon complete repayment, the trustee transfers the title to the borrower.

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Deed of Reconveyance - used to release the property from the lien once the loan has been fully repaid. It acknowledges the satisfaction of the debt and transfers the legal title to the trustor (borrower).  A deed of reconveyance is typically prepared by the trustee and recorded in the public records to provide clear evidence of the release of the lien.

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Survivorship Deed - allows co-owners of real estate to automatically transfer a deceased owner’s share to the surviving owner(s). It can help avoid the probate process after the death of a joint property owner, as the property automatically passes to the surviving owner(s) without the need for the involvement of a will or trust.

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Bargain and Sale Deed - includes a warranty that the grantor owns the property but doesn’t guarantee against claims or liens. It does not protect the grantee against title-related problems that may arise after the transfer. The grantee assumes the risk of any encumbrances or defects in the title.

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Contract for Deed (also known as an installment land contract, a land contract, or a land sales contract) - is a type of unique real estate agreement where the seller essentially finances the buyer’s purchase of the property.

In this arrangement, the buyer obtains equitable title (usually with a down payment) and starts making installments to the seller, including the agreed purchase price and any interest. The legal title remains with the seller until the purchase price is fully paid.

Once the buyer has paid everything, the seller is required to sign a deed that officially transfers the legal ownership of the property to the buyer.

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Title insurance - a policy that covers third-party claims on a property that don’t show up in the initial title search and arise after a real estate closing.

The title company searches for public records related to your home to try to find any title defects that could affect the lender’s or buyer’s property rights such as:

• Liens - can get placed on the property by a contractor, tax authority or lender who hasn’t been paid. You don’t want to get stuck paying a previous owner’s unpaid bills.

• Easements - are someone else’s right to use your property even though you are the owner. For example, if there are utility lines in your backyard, the utility company will have an easement that allows them to access your property if they need to work on the lines. The easement could limit your ability to use your property however you want.

• Encumbrances - include liens (also called “financial encumbrances”) as well as easements, but also include zoning laws, restrictive covenants imposed by homeowners associations and leaseholder rights.

 

These are some of the issues an owner’s title policy can protect you against:

• Property survey errors

• Boundary disputes

• Errors on the property deed

• Building code violations by a previous owner

• Conflicting wills

• Claims by an ex-spouse who didn’t sign off on the sale

• Forged documents

• Liens from contractors, taxing entities or previous lenders

• Encroachments

• Improperly recorded documents

 

Lender’s title insurance - This type of title insurance policy protects the financial interests of the company that issues the mortgage (just like mortgage insurance does). 

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Owner’s title insurance - This policy protects you—the homebuyer. For an owner’s title insurance policy, the coverage amount is usually equal to the purchase price and remains constant for as long as you or your heirs own the home. Owner’s title insurance is optional and only needs to be purchased once.

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marketable title - means that the chain of ownership (title) to a particular piece of property is clear and free from defects.  

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Insurable title - does, or may have a known defect or defects in the chain of title.  However, with an insurable title, a title insurance company has agreed in advance to provide insurance against the defects ever affecting the ownership or value of the property.

 

Closing Process

• Enter escrow

• Perform a title search and purchase insurance

• Hire a closing attorney

• Get pre-approved for a mortgage 

• Determine your closing costs

• Schedule a home and pest inspection

• Renegotiate the offer

• Lock in your interest rate

• Lift real estate contingencies

• Deposit funds into escrow

• Perform a final walkthrough

• Sign all paperwork

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The Recording Process

• The person who holds this new interest in the real estate presents their deed to the county recorder.

• If a title company is hired to provide title insurance, the title company handles the recordation with the county recorder.

• The county recorder will photograph the deed and file a copy in their records, which are kept in chronological order.

• The recorder indexes the interest in the real estate.

  • Some counties index the real estate by location whereas others index using a chain of title to the real estate.

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Parties Involved in Closing

• Your real estate agent or realtor

• Your title insurance company

• An escrow company

• Your attorney (if you come from a state where attorneys conduct closings, or if you hire legal representation for your closing)

• The seller’s attorney

• Your lender may or may not attend

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Home Warranty - covers the home’s mechanicals and appliances that fail from normal wear and tear. 

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Builders Warranty - provided by builders to their customers after the home is completed. They typically last one to two years for materials and workmanship and five to 10 years for structural issues.

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Homeowners Insurance - a type of property insurance that protects your home and assets from various risks.  

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Special Transaction Processes

Foreclosure - the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments.

Short Sale - A short sale in real estate is an offer of a property at an asking price that is less than the amount due on the current owner's mortgage.

Probate - the legal process of distributing a deceased person's assets according to their will or state laws.