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Cover 4 Deed Types in Arizona Real Estate Transactions (1818x1805)

Table of Contents

1. What are deeds?
2. What are the different types of deeds?
3. What is a warranty deed?
4. What is a quitclaim deed?
5. What is a special warranty deed?
6. What is a bargain and sale deed?

What are deeds?

Deeds are legal documents used in real estate transactions to transfer ownership of a property from one party to another. The person transferring the property is known as the grantor, and the person receiving the property is known as the grantee.

Deeds are essential because they provide proof that the transfer of ownership has taken place. Without a deed, it would be challenging to prove who owns a property.

What are the different types of deeds?

There are six types of deeds commonly used in real estate transactions. These include:

1. Warranty Deed
2. Quitclaim Deed
3. Special Warranty Deed
4. Bargain and Sale Deed
5. Executor’s Deed
6. Administrator’s Deed

What is a warranty deed?

A warranty deed is a type of deed in which the grantor guarantees that he or she owns the property and has the right to transfer ownership to the grantee. The grantor also guarantees that there are no liens or encumbrances on the property, except those that have been previously disclosed.

Warranty deeds offer the most protection to the grantee because the grantor is legally responsible for any defects in the title. If a defect is found, the grantee can sue the grantor for damages.

Warranty deeds are often used in situations where the property is being sold for a significant amount of money, such as in a home sale.

What is a quitclaim deed?

A quitclaim deed is a type of deed in which the grantor transfers whatever interest he or she may have in the property to the grantee. Unlike a warranty deed, a quitclaim deed offers no guarantees as to the state of the title.

This means that if there are any defects in the title, the grantee has no legal recourse against the grantor. Quitclaim deeds are often used in situations where the grantor is not sure about the state of the title, such as in a divorce settlement or the transfer of property between family members.

What is a special warranty deed?

A special warranty deed is a type of deed in which the grantor guarantees that he or she has not done anything to harm the title during the time that he or she owned the property.

This means that if a defect is found in the title that was caused by the grantor, the grantee can sue the grantor for damages. However, if the defect was caused by someone else, the grantee would have no legal recourse against the grantor.

Special warranty deeds are often used in situations where the grantor has only owned the property for a short period, such as in a foreclosure sale.

What is a bargain and sale deed?

A bargain and sale deed is a type of deed in which the grantor transfers the property to the grantee, but makes no guarantees as to the state of the title.

This means that the grantee takes the property subject to any defects in the title, but the grantor does not guarantee that there are no defects. Bargain and sale deeds are often used in situations where the property is being sold for a nominal amount, such as in a tax sale.

Conclusion

Deeds are essential legal documents used in real estate transactions to transfer ownership of a property from one party to another. There are six types of deeds commonly used in real estate transactions, each with its own set of benefits and risks. It is crucial to understand the different types of deeds and their implications before entering into a real estate transaction.