Warranty Deeds, Special Warranty Deeds, Quitclaim Deeds… and More

A deed is an important legal document that transfers property from one entity to another—often in the case of a real estate deal. All deeds contain the date of the transaction, the names of the parties involved, a description of the property being transferred, and the signatures of the buyer. Deeds in Arizona need to be signed in the presence of a Notary. Through a deed, the grantor warrants he or she is the rightful property owner and has a legal right to transfer title.

Key terms in the world of deeds:

  • Grantor: The person who is transferring a stake in a property to another person, either by sale or gift. Could also be known as the seller.
  • Grantee: The person receiving the transfer of real estate, either by sale or gift. Could also be known as the buyer.
  • Vesting: How a person wishes to take title (i.e. married, widowed, unmarried, or married as their sole and separate property).

There are different types of deeds including the warranty deed, special warranty deed, and quitclaim deed. The difference between these deeds is usually defined by what warranties and covenants are being conveyed from the seller to the buyer.

What does it mean at the beginning of the deed when it says, “For valuable consideration of TEN DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged…”?

State law requires that a deed must state that consideration was given by the grantee to the grantor. The phrase “for valuable consideration” meet the legal requirement that consideration be shown but allows the parties to retain privacy regarding the exact amount paid for the property. Basically, $10 is the number that’s generally used for the sake of complying with the law.

Title companies in the area can no longer create deeds unless the client is in escrow and the title company is writing a title insurance policy. Generally, if you call a title company because you need to transfer real estate, the title companies will end up referring you to me to create the deed for you.

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  • Warranty Deeds

    A warranty deed, also known as a general warranty deed, is the the most often used deed and provides the highest form of protection for the buyer when purchasing real estate. A warranty deed pledges or warrants that the owner owns the property free and clear of any outstanding liens, mortgages, or other encumbrances against it. With the use of a warranty deed, the grantor (the seller or person gifting the property) is responsible for a breach of any warranties and guarantees, warrants that the title would withstand any third-party claims to ownership of the property, and will do whatever is necessary to make good the grantee’s title to the property.

  • Quitclaim Deeds

    A quitclaim deed is a type of deed that transfers the actual legal rights to a property, if any exist, that the grantor has without any representation, warranty or guarantee. In other words, a quitclaim deed gives no guarantee of the title status of a property, or if the property has any liens or encumbrances against it.

  • Special Warranty Deeds

    A special warranty deed is very similar to a general warranty deed, but the difference lies in the fact that while a general warranty deed guarantees a clear title for the entire transfer history of the property, a special warranty deed only guarantees clear title during the period of time for which the grantor owned the property. While the seller in a warranty deed must defend the title against all other claims and compensate the buyer for any unsettled debts or damages, the grantor in a special warranty deed is only responsible for debts and problems accrued or caused during the grantor’s ownership of the property.

  • Deeds Transferring Property to a Trust

    Generally, any deed listed above can be used to transfer real estate into a trust. Infinity Legal’s deed-to-trust is simply called a “Deed”, and will start with the wording “THIS INDENTURE”. The phrase ‘indenture’ is defined as an agreement or contract.