Different Types Of Land Deeds

If you are in the business of buying or selling land, you need to understand the different types of deeds that come with land purchase. While you may well use the same deed for every real estate transaction you make, it’s important to know the distinctions between them.

Warranty Deed

The warranty deed is the most common type of deed and the one you are most likely to be working with in your real estate transactions. A warranty deed is essentially a document that contains a series of promises that the seller makes to the buyer upon transfer of the title. Some are present covenants, meaning they are promises regarding existing truths about the property. Others are future covenants, meaning they are promises regarding things that may happen with the property in the future.

Present Covenants

The present covenants are the Covenants Against Encumbrances and the Covenants of Seisin and the Right to Convey. These promise no liens on the property that may interfere with the buyer’s ownership rights, that the seller is the legal owner of the property and that the seller is legally empowered to sell the property to the buyer.

Future Covenants

The Future Covenants are the Covenants of Quiet Enjoyment, Warranty and Further Assurances. These are promises that the buyer will not be disturbed in his use of the property, that other parties will not lay claim to the title on the property and that the seller will resolve any legal problems that may interfere with the transmission of the title to the buyer.

Quit Claim Deed

In most cases, you will not be working with a quitclaim deed. A quitclaim deed is used when someone who may have an interest in a property wishes to relinquish his or her claim to that property. It provides no legal proof or guarantee of such a claim and no covenants or promises of any kind beyond the promise to relinquish claim on the property.

Bargain And Sale Deed

A bargain and sale deed transfers the title without any promises or covenants to the buyer regarding said transfer. They are most commonly used by local governments and by sheriffs or referees in foreclosure sales, since government officers do not want to the legal ramifications that may result from the government not having good title to transfer the property.