When it comes to buying or selling real estate, understanding the different types of deeds is important.
Deeds serve as legal documents that transfer ownership of a property from one party to another. Several common types of deeds accomplish this transfer, each with its unique characteristics and implications.
1. Warranty deed
A warranty deed is the most common type used in real estate transactions. It provides the highest level of protection to the buyer as it guarantees that the seller has legal ownership of the property and that there are no hidden liens or encumbrances. In essence, the seller warrants that the property is free and clear.
2. Quitclaim deed
A quitclaim deed is a simpler form of deed, often used in non-sale situations, such as transferring property between family members or correcting minor title issues. Unlike a warranty deed, a quitclaim deed provides no guarantees about the title’s status. It merely transfers the seller’s interest in the property to the buyer.
3. Special warranty deed
The special warranty deed, sometimes called a limited warranty deed, falls between the warranty deed and quitclaim deed in terms of protection. With this deed, the seller guarantees that they have not caused any title defects during their ownership of the property. However, they do not warrant against issues that may have existed before their ownership.
The type of deed used in a real estate transaction in Florida can significantly impact the buyer’s legal rights and protections. With homes typically only on the market for 61 days in Sarasota, understanding the implications of each type of deed may help ensure a smoother process.