In California, grant deeds are filed at the county assessor's office with a Preliminary Change of Ownership Request, applicable fees and a Tax Affidavit. All must be notarized for legal transfer and recording. The grant deed includes a significant title guarantee. Basically, the grantor under the grant deed guarantees to the grantee that the grantor has not transferred her title to anybody else first. So, if the new owner later discovers that two weeks before the grantor provided the grant deed, the grantor actually sold the title to a third party, the new owner can sue the grantor under this title guarantee to recover the value of the property.
A grant deed can include exceptions to the title guarantee. Although grant deeds vary widely by state some states don't even use them , the typical grant deed only contains limited present covenants. The grant deed grantor promises that he has not personally taken any action to transfer or encumber the property's title. However, he makes no promise about what previous owners might have done. Therefore, a grant deed does not guarantee that the grantor is transferring good title; if a previous owner transferred the property before selling to the grantor, the grantee will have no cause of action against the grantor.
Personal Finance Home Finance. Grant Deed Vs. Warranty Deed By Erika Johansen. Use of Deeds. Home Types of Contracts Grant Deed. Jump to Section. Need help with a Grant Deed? Post Your Project It's Free.
Get Bids to Compare. Hire Your Lawyer. What is a Grant Deed? How Grant Deeds Work The purpose of a deed is to provide legal protection to buyers called grantees of real property. Here is a quick overview of what a grant deed includes: Date of sale Names of grantor and grantee Property description Signature of grantor Notary public acknowledgement Warranty statements Check out this article to learn more about how grant deeds work.
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Business Attorney. Daliah S. Principal Attorney. It is often used in the jurisdictions where it exists during divorce proceedings. This type of deed avoids a reassessment of property tax values, which may be significant in some cases.
A grant deed may offer certain protections to the grantee, but a previous title insurance policy may not be of help if a third-party claim arises. So, it's best to consult with your title insurer and a real estate attorney if you are considering this kind of deed. Some sales transactions may not use a traditional warranty deed and instead use a special warranty deed. A special warranty deed can be used to address title defects that arose during the seller's grantor's ownership.
This is a type of deed that makes it possible to cure such title defects so that the sale can be completed. However, a special warranty deed generally doesn't guarantee that the buyer will enjoy the property claim-free for life.
It is possible that a claim could come up in the future that predates the ownership of the grantor. In such a case, the grantee may not have recourse against the grantor.
This can affect the protection that would otherwise be covered by a title insurance owner's policy and may leave the new buyer without full protection from some title claims. A quitclaim deed is an instrument for conveying the interest in a property that doesn't come with a warranty. Think of it as an "as is" deed. This kind of deed exists to pass along any title, interest, or claim that a seller has to a buyer. However, there is no title search involved, none of the covenants of a warranty deed are made and there is no guarantee that a title is valid.
The grantee gets whatever interest the seller grantor has to give, but makes no guarantees. As risky as this may sound, a quitclaim deed can be the right instrument in certain situations.
For one, it's a good way to correct typographical errors in an existing warranty deed. It can also be used to add or remove a person, such as a spouse or family member, from the title, or when a person wants to gift a piece of property to a relative without a traditional sale.
Due to its lack of warranty, a quitclaim deed is best utilized between trusted family and friends, or between a property owner and that person's limited liability business entity. Other quitclaim uses exist.
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