Types of Real Estate Transfers
There are a lot of different types of real estate transfers. It’s important to be familiar with the various options and understand which is best for your situation. Then you’ll be able to select the right type of deed for your real estate transfer.
When it comes to real estate, there are several different types of documents used for the transfer of property ownership. They all function differently and offer differing levels of protection.
Whether you are buying or selling a home, you should always consult with an attorney before making any decisions. They can help you determine the appropriate type of deed for your particular transaction and ensure that your real estate is transferred in a way that will protect you in the future.
What Are the Different Types of Real Estate Transfers?
The most commonly used real estate deeds are grant, quitclaim, and warranty. In each of these, the grantor or seller conveys the title to the property to the grantee or buyer in exchange for a sum of money or another form of consideration.
A grant deed guarantees that the grantor owns the entire property he or she is claiming to transfer and also identifies any easements running across the property or any other defects in the title. It also gives the new owner the right to take title subject to any exceptions that are listed in the document.
Typically, a quitclaim deed is the least desirable of the three types of real estate transfers because it doesn’t offer any warranties at all. It does, however, give the new owner a legal right to take title and acquire any liens that may have been placed on the property by previous owners.
A special warranty deed is the second most preferred type of real estate transfer. A general warranty deed provides more significant warranties than a quitclaim deed, and it also includes a warranty that the property is free from any liens or debts.
A bargain deed is the middle of the three types of real estate transfers. It does not make any warranties at all, but it does provide the buyer with a guaranteed ownership interest in the property.
The buyer is obligated to pay the mortgage on the property and to purchase homeowner’s insurance in conjunction with the loan. The lender usually requires that the mortgagor set up an escrow account to pay for these expenses.
A fixture is an item that is permanently attached to a property and is not expected to leave the property when it is sold or purchased. Examples of fixtures include a chandelier or air conditioner.
A mortgage is a document signed between a buyer and a lender that allows the lender to put a lien on the property in case the loan isn’t paid off. The mortgage agreement also states how much the loan will cost and how long it will be.
A deed is the most important document in the sale or purchase of a property, and transferring it improperly can lead to serious consequences down the road. The document is a legal record and must be filed with the local government agency that regulates the property. A simple mistake on the deed could result in years of legal and financial problems for you.
