A deed is a legal instrument used to convey real property. There are three main deeds in Florida, or three methods of transferring property. They vary depending on the guarantee that is offered by the seller, the type of property, or reason for transfer.
1) General Warranty Deed
- Most complete form of ownership, or highest level of protection to buyer
- Guarantee that grantor (seller) has legal title
2) Special Warranty Deed
- Provides limited warranty of title
- Seller guarantees he/she has not adversely affected the title to the property during their ownership period
- Common for transactions with trustees, or personal representatives, & foreclosures
3) Quitclaim Deed
- No warranties or guarantees from seller
- Most risky form of ownership
- Conveys the interests of the grantor (seller) but grantor does not represent he/she has any rights to convey
- Common to transfer property among family members or when dealing with a divorce
- Common to clear defects in title
In most real estate transactions, we recommend obtaining a general warranty deed in congruence with a title insurance policy to ensure you have complete equity, or ownership in your new property & proper protection for any unexpected encumbrances. However, every case is different and you should discuss your options with a Florida Real Estate Attorney.
Stay tuned for our next blog on – which Deed is right for you!