Selling or purchasing a home can be a stressful and exciting time. There are several tasks you must remember and several documents you must sign in order to ensure that everything goes smoothly. This is why it is important to make sure that you properly execute the right documents. One such document you must have is the deed. The deed transfers the title of the property to or from you. There are four commonly seen deed categories: Quit Claim, Warranty, Special Warranty, and In Trust Deeds. When buying or selling real estate, it is important to understand the differences in each type of deed. Here is what you should know.
Quit Claim Deeds
A Quit Claim Deed does as it sounds: it renounces one’s interest in a piece of property. The individual who acquires the property through a Quit Claim Deed does not promise that the property will be free of third-party interests, such as liens. A Quit Claim Deed also fails to provide any warranties as to the property or nuisances within the property. Put simply, with a Quit Claim Deed clear title of the property is not promised.
One of the more commonly seen types of deeds is a Warranty Deed. A Warranty Deed is the typical deed received when you are buying a property. When an Illinois deed “warrants” the property to the buyer, he or she is making a guarantee that he or she legally owns the property; the property has no encumbrances; the buyer can acquire the property; and the seller agrees to defend you against specific claims.
Special Warranty Deeds
Another type of deed, though not as commonly seen, is a Special Warranty Deed. This type of deed is usually issued when someone purchases a home from the bank responsible for foreclosing on it. A Special Warranty Deed essentially provides a guarantee within the time that the property was owned by the bank. It makes no promises regarding anything that occurred prior to the bank taking possession of it.
Deeds in Trust
Deeds in Trust, commonly referred to as Trustee’s Deeds, transmit a property into a specific trust. This type of deed can be a Quit Claim Deed or a Warranty Deed. You will know what type of deed this is depending upon what it states. If it includes the word “quitclaims”, it is obviously a Quit Claim Deed, whereas if it includes the word “warrants,” it is a Warranty Deed. The Deed will maintain whatever are the normal characteristics of the type of deed it is (Quit Claim vs. Warranty).
Contact Our Gurnee Real Estate Attorneys
At Newland & Newland, LLP, we can help you to ensure that you are properly conveying or receiving the title to a property. Doing it right the first time will save you time, money, and frustration. To schedule a complimentary consultation, contact our Grayslake real estate lawyers at 847-549-0000 today.