General Warranty Deed vs. Quit Claim Deed

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It has come to my attention that quite a few people in real estate are unclear on the difference between a quit claim deed and a full warranty deed. So here is a general description of there differences. Hope it helps.



A full warranty deed gives all guarantees that the current owner of a property has all rights to it and full ownership (unless specifically noted otherwise). A full warranty deed also has a title search done on it to help reassure that there are no unknown claims on the property. The buyer of a property that has a full warranty deed would be protected against any legal expenses or financial loses that may arise due to someone else's claims that they have some prior rights or liens on said property. Ok, so the question is - why would someone want any other type of deed? Ok, bare with me.



A quit claim deed is a deed that probably has not had a title search done on it and guarantees no rights to a new owner. It transfers only whatever interest the grantor (seller) may have when the deed is delivered. So when should one want or use a quit claim deed? The most common use for quit claim deeds is to fix errors on a title for property: such as spelling errors and other misinformation. It is used in this situation because usually a full warranty deed already exists for the property in question and it is cheaper and quicker to use a quit claim deed to fix such minor problems with a title.



There are some times when one may want to consider buying a property that is being sold with a quit claim deed, but the key to this (like everything else in life) is to first do your homework and know what you are buying. For example, if you are getting an extremely good deal in price, have already checked all available records on a property, and feel confident that known one else has any claims on that property, you may consider purchasing it even though it only has a quit claim deed. Also, you may consider taking a quit claim deed if you are buying property from the government that was taken due to delinquent taxes, such as property at scavenger sales. This is because under law once a property is taken from it's owner due to a tax lien all other previous liens or financial claims against that property become uncollectable. If you would like further information on types of deeds and there differences check your state laws and/or contact your local title company.

Comments(2)

  • Lufos11th September, 2003

    The two types of deed most in use in these Fair United States are the General Warranty Deed and the Grant Deed. Depends on where you live and what type of history created the instruments of your state. Calif. we use the Grant Deed. It can be utilized with a Title Policy or without. In olden times before the title companies came into being a lot of Abstract work was done by attornies and specialists in title research. Good training. However please be aware that you can take a Quit Claim Deed and if you add a few lines you can convert it to almost a Grant Deed. Also if you get hung out, can only get a Quit Claim Deed. try to get the deeding person to fill out a Statement of Identification,

    this helps the Senior Title Officer or Arb Officer at a title company to decide if he should insure the transfer of property. Yes if the wind is right and the timing correct they will even if you play the game correctly issue full insurance on the passing of a title with only a Quit Claim Deed, but it takes a bit of doing.



    In the 1930s in Los Angeles there was a lot of Abstract Title work done on small loans, the reason of course is it was cheap and what you got was an opinion on title not an insurance policy on the title. But a lot of young and struggling attornies who could not afford to go to USC and join the old boys club on graduation did this type of work like for $5 a search. They also employed young boys such as me. I wore a Green eyeshade and had long black cotton cuffs on my sleaves and I examined very large books in the old Hall of Records. Good place to learn, oh yes we sat on high stools, very Dicken's Bleak House and A Matter in Chauncery were required readings. Want to learn more? At your leasure get a hold of Handbook for Title Men, put out by Title Insurance and Trust Co.

    I have a 1973 Edition. To understand modern times and Real Estate Transaction I think that a little peek into the history is helpful. The computers and modern items are all based on the original Hall of Record Methods. Much better but when you hit problems you can go back into time look at the original methods and see how the applicables were added.

    I am now obtaining Building Permits on Line, do you know how much time that saves? Now that creates a problem, what to do with the time? Cheers Lucius


  • godaddyo12th September, 2003

    As an investor, I believe that are real concern is whether or not the title company will accept the deed. Ideally, a general warranty deed is the best deed to get. My question to anyone who has ever dealt with a home owner is, "How can a distressed seller who still owes money for liens give anyone a clear title and a general warranty deed?". It really is the silliest thing I have ever heard. In reality, most 'distressed sellers' would give a quit claim deed, as they can't guarantee anything.



    On the other hand, we must remember that deeds are state specific and the laws that govern how a specific deed will work should be discussed with your attorney. Some states don't even allow quit claim deeds, while others do, but only for transfer in diviorce etc..So understand that deeds are not a constant.

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